Associated Press sells German unit to ddp news agency

According to a report published by the Sueddeutsche Zeitung daily newspaper, ddp paid tens of million of euros for AP's German services, which provide news content for media customers such as newspapers, broadcasters and online portals.
The deal also grants ddp a 15-year license to adapt and use English-language content from AP's network of 3,000 reporters based in 250 bureaus in 97 countries. Observers say that will allow the Berlin-based agency to go beyond its traditionally domestic focus and provide customers with international coverage of global events.
Competitive pressures
The acquisition will see 110 AP reporters from Germany, Austria and Switzerland join ddp's pool of 140 journalists.
Peter Loew, who co-owns ddp with Martin Vorderwuelbecke, told the Sueddeutsche Zeitung that he had high hopes for the enlarged company.
"We are going to be the best full-service agency in Germany," Loew said. "Our strategy is to make the Deutsche Presse-Agentur (dpa) dispensable."
German newspapers on sale at a kioskBildunterschrift: Großansicht des Bildes mit der Bildunterschrift:  German newspapers rely on agencies for much of their non-local contentThe aggressive strategy pursued by ddp adds to a string of bad news for dpa, which has been struggling to maintain its position as Germany's leading news agency.
Last month Berlin's Tagesspiegel newspaper announced it would stop using dpa services in the summer of 2010, citing high costs, while the WAZ group of regional newspapers cancelled its contract on January 1, 2009.
Growth, not cutbacks
Loew told reporters management would focus on expansion, not cutbacks, and that he expected redundancies would be limited to about 15 positions.
Representatives from AP's German works council said employees were disappointed that top managers in the United States had not kept them up to date on negotiations with ddp, and that they only found out the deal had been finalized in the press.
AP, a cooperative whose customers are mainly US newspapers, has been cutting costs to help offset weakening demand from core clients hit by a plunge in advertising revenue.
An attempt to sell its French unit failed last year due to stiff resistance from local staff.
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