Tag Archives: GateHouse

Cuts are imminent at the ProJo and the New Haven Register

The redoubtable Ian Donnis of Rhode Island Public Radio reports that The Providence Journal may shed up to 40 jobs once an affiliate of GateHouse Media has completed its purchase of the paper. Donnis’ source is impeccable: the number is included in paperwork GateHouse filed with the Securities and Exchange Commission.

Donnis does not say how many employees the Journal now has, and I was unable to find that number in recent coverage of the sale. I’ll add it if someone passes it along. Also, I assume that all 40 cuts will not be in the newsroom.

Also, Philip Eil of The Providence Phoenix takes a look (link now added) at what the sale means for the venerable paper. (Founded in 1829, the Journal bills itself as the oldest continuously published daily paper in the United States.)

In other dispiriting news, Paul Bass of the New Haven Independent reports that another round of deep cuts is imminent at the New Haven Register. Once part of the Journal Register Co., perhaps the worst newspaper chain in the country, and in more recent years a beacon of hope under Digital First impresario John Paton, the entire chain — which includes Massachusetts titles such as The Sun of Lowell, the Sentinel & Enterprise of Fitchburg and The Berkshire Eagle — is now believed to be for sale.

Sale of ProJo a lost opportunity for local ownership

Previously published at WGBHNews.org.

The online news site GoLocalProv is taking a well-deserved victory lap now that it’s been announced that GateHouse Media will acquire The Providence Journal from A.H. Belo of Dallas for $46 million. GoLocalProv reported on June 13 that the sale was imminent. But there the matter stood until Tuesday, when we learned that the Journal had been sold to GateHouse’s parent, New Media Investment Group.

As I told Ted Nesi of WPRI.com, I think it’s a shame that some way couldn’t be found for the Journal to return to local ownership — a lost opportunity, just as it was when John Henry sold the Telegram & Gazette of Worcester to Halifax Media Group of Daytona Beach, Florida, earlier this year. There is no substitute for a newspaper that is fully invested in the community. I have no doubt that cuts will follow, just as they did when New Media/GateHouse last year purchased Rupert Murdoch’s Dow Jones community papers, including the Cape Cod Times and The Standard-Times of New Bedford.

Still, any incoming chain would make cuts, and I think the new, post-bankruptcy GateHouse, based in Fairport, New York, deserves a chance to prove it will be good steward of the Journal. Despite reductions at the Cape Cod and New Bedford papers, journalists there continue to do a good job of serving their communities. On the other hand, the more than 100 community papers GateHouse already owns in Eastern Massachusetts are strictly barebones operations.

In a full-page ad in today’s Journal aimed at reassuring his new employees, customers and the community of the company’s good intentions, GateHouse chief executive officer Kirk Davis concludes:

We know The Providence Journal plays an indispensable role in helping you live your life in and around Rhode Island. We look to uphold these great traditions and make the investments needed to thrive in the new multimedia world. The purchase is expected to close later this summer. We are looking forward to welcoming the readers, advertisers and employees of The Providence Journal to our family.

At $46 million, New Media/GateHouse paid a surprisingly high price for the Journal. Although Belo is keeping the pension liabilities, it’s also keeping the downtown property. By way of comparison, John Henry paid $70 million for the Globe, the Telegram & Gazette and all associated properties — then turned around and sold the T&G for $17.5 million, according to a source involved in the sale. One possible explanation is that the New York Times Co. sold the Globe and the T&G to the low bidder, as one of the spurned suitors, “Papa Doug” Manchester, complained at the time. New Media/GateHouse, by contrast, was presumably the high bidder for the Journal.

Another possible explanation is that the Journal is worth more to GateHouse than to other buyers because it gives the company new territory for its Propel Marketing subsidiary. According to a perceptive analysis of the deal by Jon Chesto in the Boston Business Journal, Propel is seen by GateHouse executives as “the primary engine for growth at the company.”

Yet another wrinkle: The Globe has developed a nice side business printing other newspapers, including the Boston Herald and GateHouse properties such as The Patriot Ledger of Quincy and The Enterprise of Brockton. At a time when Henry is getting ready to sell the Globe’s Dorchester plant and move printing operations to a former T&G facility in Millbury, the prospect of losing GateHouse’s business has got to be disconcerting.

Why Rupert Murdoch probably won’t buy the Herald

Published earlier at WGBHNews.org.

Here’s the answer to today’s Newspaper Jeopardy question: “Maybe, if there’s a willing buyer and seller.”

Now for the question: “With Rupert Murdoch getting out of the Boston television market, is there any chance that he would have another go with the Boston Herald?”

Following Tuesday’s announcement that Cox Media Group would acquire WFXT-TV (Channel 25) from Murdoch’s Fox Television Stations as part of a Boston-San Francisco station swap, there has been speculation as to whether Murdoch would re-enter the Boston newspaper market. Universal Hub’s Adam Gaffin raises the issue here; the Boston Business Journal’s Eric Convey, a former Herald staff member, addresses it as well. I’ve also heard from several people on Facebook.

First, the obvious: There would be no legal obstacles if Murdoch wants to buy the Herald. The FCC’s cross-ownership prohibition against a single owner controlling a TV station and a daily newspaper in the same market would no longer apply.

Now for some analysis. Murdoch is 83 years old, and though he seems remarkably active for an octogenarian, I have it on good authority that he, like all of us, is not going to live forever. Moreover, in 2013 his business interests were split, and his newspapers — which include The Wall Street Journal, The Times of London and the New York Post — are now in a separate division of the Murdoch-controlled News Corp. No longer can his lucrative broadcasting and entertainment properties be used to enhance his newspapers’ balance sheets.

Various accounts portray Murdoch as the last romantic — the only News Corp. executive who still has a soft spot for newspapers. The Herald would not be a good investment because newspapers in general are not good investments, and because it is the number-two daily in a mid-size market. Moreover, the guilty verdict handed down to former News of the World editor Andy Coulson in the British phone-hacking scandal Tuesday suggests that Murdoch may be preoccupied with other matters.

On the other hand, who knows? Herald owner Pat Purcell is a longtime friend and former lieutenant of Murdoch’s, and if Rupe wants to stage a Boston comeback, maybe Purcell could be persuaded to let it happen. Even while owning the Herald, Purcell continued to work for Murdoch, running what were once the Ottaway community papers — including the Cape Cod Times and The Standard-Times of New Bedford — from 2008 until they were sold to an affiliate of GateHouse Media last fall.

There is a storied history involving Murdoch and the Herald. Hearst’s Herald American was on the verge of collapse in 1982 when Murdoch swooped in, rescued the tabloid and infused it with new energy. Murdoch added to his Boston holdings in the late 1980s, acquiring Channel 25 and seeking a waiver from the FCC so that he could continue to own both.

One day as that story was unfolding, then-senator Ted Kennedy was making a campaign swing through suburban Burlington. As a reporter for the local daily, I was following him from stop to stop. Kennedy had just snuck an amendment into a bill to deny Rupert Murdoch the regulatory waiver he was seeking that would allow him to own both the Herald and Channel 25 (Kennedy’s amendment prohibited a similar arrangement in New York). At every stop, Herald reporter Wayne Woodlief would ask him, “Senator, why are you trying to kill the Herald?”

The episode also led Kennedy’s most caustic critic at the Herald, columnist Howie Carr, to write a particularly memorable lede: “Was it something I said, Fat Boy?” Years later, Carr remained bitter, telling me, “Ted was trying to kill the paper in order to deliver the monopoly to his friends” at The Boston Globe.

Murdoch sold Channel 25, but in the early 1990s he bought it back — and sold the Herald to Purcell, who’d been publisher of the paper, reporting to Murdoch, for much of the ’80s. It would certainly be a fascinating twist on this 30-year-plus newspaper tale if Murdoch and Purcell were to change positions once again.

The re-emergence of Rick Daniels

Rick Daniels

Rick Daniels

Rick Daniels, a longtime news executive who served as president of The Boston Globe and CEO of GateHouse Media News England, has been named COO of GoLocal24, which publishes a network of sites that includes GoLocalProv and GoLocalWorcester. In 2013 Daniels led an unsuccessful effort to buy the Globe from the New York Times Co.

From the announcement:

“Rick is a tremendous addition to the leadership of our team. At the helm of the Globe, Rick launched Boston.com and BostonWorks – two of the best and most highly monetized news Web products,” said Josh Fenton, Co-Founder and CEO of GoLocal24.

GoLocal24 announced in January it would be launching its third market, Portland, Oregon this summer. GoLocalPDX.com will focus on providing the highest quality investigative journalism, top-flight lifestyle content, and best in breed comprehensive news coverage.

GateHouse reportedly on verge of buying Providence Journal

animated-siren-gif-animated-siren-gif-animated-siren-gif-drudge-reportGoLocalProv is reporting that GateHouse Media is on the verge of buying The Providence Journal for an estimated $50 million to $60 million. John Henry only paid $51 million for The Boston Globe if a GoLocalWorcester report that he sold the Telegram & Gazette of Worcester for $19 million is accurate (Henry paid $70 million for the Globe, the T&G and some smaller related properties).

This story is still developing. But GoLocalProv offers some insight as to why the price might be so high: lucrative printing contracts and a highly desirable downtown headquarters that could be sold and leased back.

Correction: I initially misreported the purchase price of the Globe. Apologies to Matt Drudge for the siren.

 

Would John Henry sell the T&G to an out-of-state chain?

Worcester skyline. The Telegram & Gazette headquarters is the larger building on the left.

Worcester skyline. The Telegram & Gazette headquarters is the larger building on the left.

This article was previously published at WGBH News.

John Henry has some explaining to do to the people of Central Massachusetts. According to the Telegram & Gazette of Worcester, a paper that Henry acquired along with The Boston Globe last year, Henry may be preparing to sell the T&G to Halifax Media Group, a chain based in Daytona Beach, Fla. Halifax owns 35 daily papers, mainly in the Southeast.

Rick Edmonds, who analyzes the news business for the Poynter Institute, writes, “Halifax’s way of operating remains mysterious but appears typically to involve newsroom layoffs and a booster-ish editorial tone.” Edmonds’ article is recommended reading, as it has a lot of details about Halifax and its competitors in the community-newspaper business — including GateHouse Media, which owns about 100 papers in Eastern Massachusetts.

The idea that Henry might sell the T&G to an out-of-state chain with a penchant for cost-cutting is alarming. But would he really do it? Back in November, he met with the T&G staff and said his preference was to sell to local owners — and that if such owners didn’t materialize, he might keep the paper. Here’s some of what T&G reporter Lisa Eckelbecker reported on Nov. 26 about Henry’s visit:

“I think it’s important for the Telegram & Gazette to be under local ownership,” he [Henry] told a gathering of the newspaper’s staff in the newsroom Tuesday afternoon. “I have been talking to local people who have expressed an interest. There’s absolutely nothing imminent.”

Mr. Henry told the newspaper’s employees that a potential sale would not happen until 2014 and that it would only be to the “right buyer.”

“I think you need a local owner,” he said. “A local owner can sit down with advertisers, readers and community leaders and ask for their support. I’m looking for someone with tremendous energy and a passion for this newspaper.”

Mr. Henry also said that if he cannot find the right owner, he would keep the T&G.

“This is not a forced sale,” he said. “If we don’t find the right owner, you’re stuck with me.”

In March, the T&G’s Shaun Sutner reported that the chances of a sale to local ownership had all but evaporated, as a group led by retired T&G editor Harry Whitin and Polar Beverages chief executive Ralph Crowley had taken itself out of the running. But Henry, rather than reasserting his love for Worcester and its environs, has apparently been quietly pushing ahead with a possible sale.

Now, a couple of caveats. First, just because Halifax executives are nosing around the T&Gdoesn’t mean that Henry would sell to them. Let’s not forget that the New York Times Co. let the truly alarming “Papa Doug” Manchester of U-T San Diego kick the tires on the Globe, but in the end handcrafted a deal that allowed Henry to take charge. Perhaps Henry will do something similar now that the situation has been reversed.

In addition, even if Halifax did acquire the T&G, we don’t really know what kind of a steward it would be. Virtually all newspaper companies lay people off when they acquire a new property. The real issue is whether they cut so deeply that their papers are no longer able to fulfill their journalistic mission. According to Edmonds, Halifax’s papers still engage in investigative journalism; its largest paper, the Sarasota Herald-Tribune, won a Pulitzer in 2011 (although that predated the paper’s 2012 acquisition by Halifax).

Still, there’s little question that the Telegram & Gazette would be better off in the hands of local owners. Given that the paper’s reported value is just $7 million, it would be nice to think that the local owner might prove to be John Henry himself.

Photo (cc) by Terageorge and published under a Creative Commons license. Some rights reserved.

Local buyers exit Worcester Telegram bidding

Harry Whitin

Harry Whitin

This article was published previously at WGBH News.

This week’s Boston Globe-related media news continues, as the Telegram & Gazette of Worcester reports that the only potential local buyers for the paper have withdrawn.

Retired T&G editor Harry Whitin and Polar Beverages chief executive Ralph Crowley had been mentioned as possible buyers since 2009, when the New York Times Co. first put the Globe and its related properties (including the T&G) up for sale. John Henry, who bought the Globe late last year, told the T&G staff in November that he hoped to sell the paper to someone local, and that he might hang onto it if he couldn’t find the right buyer. (Henry also said he would keep the T&G’s Millbury printing plant — a facility that is likely to be used to print the Globe and handle its contract work, including the Boston Herald, after Henry sells the Globe’s current headquarters on Morrissey Boulevard in Dorchester. He recently confirmed that move in an interview with Boston magazine.)

Now, though, Whitin and Crowley are out, with Whitin telling the T&G’s Shaun Sutner: “For all intents and purposes, we have withdrawn from the process.”

Today’s T&G story also quotes Tim Murray, CEO of the Worcester Regional Chamber of Commerce and the former lieutenant governor, as saying that Henry should sell the paper at a discount if that means transferring it to local owners, just as the Times Co. sold the Globe to Henry out of a sense that he would prove to be a good steward. Here’s Murray:

The fact of the matter is The New York Times gave a discount to a local buyer for The Boston Globe because they had a buyer who professed to be committed to the region, Greater Boston and the journalistic mission that newspapers play. And therefore it is not unreasonable for Mr. Henry to extend that same courtesy to the residents of Worcester in contemplating a sale.

Sutner quotes me regarding two national chains — GateHouse Media, which owns about 100 papers in Eastern Massachusetts, and Digital First Media, which owns several papers not far from Worcester, including The Sun of Lowell and the Sentinel & Enterprise of Fitchburg.

Of the two, I think Digital First would be the more interesting choice. Headed by the bombastic John Paton (profiled in 2011 by David Carr of The New York Times), his company — which includes papers such as The Denver Post and the New Haven Register — has been trying to innovate its way out of the financial morass in which the newspaper business finds itself.

Digital First employs some of the most respected thinkers in digital journalism, including editor-in-chief Jim Brady and digital transformation editor Steve Buttry. Here is a press release on Digital First’s most recent initiative, Project Unbolt, which seeks to remove the “bolts” that still keep local journalism attached to the industrial processes that defined pre-Internet newspapers. Digital First also has a content partnership with GlobalPost, the pioneering online international news service founded five years ago by Boston media entrepreneur Phil Balboni. (I wrote about some of Paton’s early moves in New Haven in my book “The Wired City.”)

The Telegram & Gazette is a major media presence in Central Massachusetts. I still hope it ends up in local hands — or that Henry decides to keep it. But if it’s going to be sold to a national chain, the staff and the community could do worse than to be served by a company that is trying to revive the business of local news.