Fairfax and Google become Pyrmont housemates

Fairfax and Google become Pyrmont housemates

A new arrangement between two of the most recognisable brands in Australia has led to the radical reimagining of a Pyrmont office space.

Internet giant Google has moved into the second floor of Fairfax’s Pyrmont offices, subleasing the space from the struggling media company responsible for newspapers including The Sydney Morning Herald, The Age, and The Australian Financial Review.

Famous for its unconventional and playful office spaces, Google has done its upmost to maintain its reputation by installing a Monorail carriage in the newly leased floor, positioned by crane last week.

The company purchased the carriage from the State Government, which scrapped the Monorail this year. While Google decks the halls with remnants of Sydney’s much-maligned Monorail network, Fairfax’s decision to sublease the floor comes at a difficult time for the company.

Downsized profits have meant downsized operations and Fairfax is currently laying off 1,900 staff. A Fairfax spokesperson said the company had no comment on the decision to sublease space to Google but the company’s 2013 Annual Report reveals that, despite reigning in costs across the board, “rent and ongoing” costs have increased in the last year.

According to University of New South Wales (UNSW) Associate Professor David McKnight, Fairfax’s decision to sublease the floor is likely to be part of broader efforts to curtail expenses.

“There is obviously symbolism in the move, but there is a more important, deeper issue underneath and that is – what will society be like if we don’t have the newsrooms we have now?”

The news might not be all bad for Fairfax though, and the close proximity to Google could present some strategic advantages for the struggling company.

Maureen Henninger, a Senior Lecturer in Information and Knowledge Management at the University of Technology, Sydney (UTS), said that while Google would hardly be giving away any secrets, conversations with Fairfax about its social networking programs Google Plus could be fertile.

“Obviously Google is not going to be speaking to any other organisations as to any of their various algorithms for advertising revenue. Nevertheless, it is possible that Fairfax might be able to take advantage, or some collaborative look at how Google Plus and the Google circles could benefit Fairfax,” Ms Henninger said.

“I suppose it will be up to the powers that be at Fairfax and the powers that be at Google to talk to one another and explore it,” she said.

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