By Dan Kennedy • The press, politics, technology, culture and other passions

Tag: GoLocalProv

The Providence Phoenix, 1978-2014*

Screen Shot 2014-10-10 at 7.20.05 AMAs you may have already heard, The Providence Phoenix is shutting down, about a year and a half after The Boston Phoenix closed its doors. Ted Nesi of WPRI covers it here. Awful news, but not entirely unexpected. As recently as a few months ago, I was hearing that The Portland Phoenix of Maine was doing well but that Providence was lagging financially.

What happened? It’s hard to say. But Portland is a smallish city, insular and self-contained — the sort of place where alt-weeklies seem to be surviving. An example: Seven Days of Burlington, Vermont, which appears to be thriving. Providence, by contrast, is a fairly large city within the orbit of Greater Boston.

The demise of The Providence Phoenix would be bad enough on its own. What makes it even worse is that the Providence Journal is in the midst of downsizing following its sale to a company affiliated with the GateHouse Media chain. There is a real gap in Providence, and it’s not immediately clear what will fill it. Perhaps Rhode Island Public Radio can beef up its online local coverage. Maybe the online-only news site GoLocalProv will rise to the challenge. Or something new might come along.

The Providence Phoenix has produced some fine journalists over the years, including Ian Donnis of RIPR and David Scharfenberg of The Boston Globe. And best wishes to editor Lou Papineau, a veteran who started at the paper back when it was known as the NewPaper, and news editor Phil Eil, a more recent hire.

Best wishes, too, to publisher Stephen Mindich, who kept the Boston and Providence papers alive for as long as he could. I hope the future is brighter for The Portland Phoenix — now the only remaining alt-weekly in what was once a vibrant regional chain.

And yes, I plan to rant about this later today on WGBH’s “Beat the Press.”

(Note: I was a staff writer and editor for The Boston Phoenix from 1991 to 2005, and last wrote for the Providence and Portland papers this past July.)

*Correction: The headline originally gave the incorrect year for the founding of The Providence Phoenix, which began life as The NewPaper. As founder Ty Davis writes in the farewell issue, he began the paper during the Blizzard of 1978.

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.

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.

 

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