Tag Archives: Rupert Murdoch

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 Murdoch could prove to be the savior of CNN

Rupert Murdoch at the 2009 World Economic Forum.

Rupert Murdoch at the 2009 World Economic Forum

Previously published at WGBHNews.org.

Could Rupert Murdoch turn out to be the savior of CNN?

Not directly, of course. After all, his Fox News Channel is a blight upon the civic landscape — a right-wing propaganda machine whose elderly viewers are, according to a 2012 Fairleigh Dickinson study, even less well-informed than people who watch no news at all.

Nevertheless, I felt my pulse quickening last week when I learned that Murdoch is trying to add Time Warner to his international media empire. Among Time Warner’s holdings is CNN. And according to The New York Times, Murdoch would sell the once-great news organization in order to appease federal antitrust regulators.

(Murdoch’s acquisition would not affect Time magazine, a diminished but still valuable news outlet: Time Warner recently set Time adrift after stripping it of most of its assets.Time’s future is far from secure, but at least Rupe won’t have a chance to put Fox News chief Roger Ailes in charge of it.)

As you no doubt already know, CNN in recent years has fallen into the abyss. When I Googled up its increasingly ironic slogan, “The Most Trusted Name in News,” I was taken to a page at CNN.com dating back to 2003, complete with photos of former CNN hosts such as Aaron Brown, Judy Woodruff and Larry King, the seldom-seen Christiane Amanpour and others who evoke a better, more substantive era.

These days, unfortunately, CNN is known mainly for its endless coverage of the missing Malaysian jetliner and for a series of embarrassing screw-ups, such as its misreporting of the Supreme Court’s decision on the Affordable Care Act in 2012 and its false report that a suspect had been arrested in the Boston Marathon bombing (to be fair, CNN was not alone on either mistake).

Then, too, there have been a series of mystifyingly bad hires, such as the talentless yipping Brit Piers Morgan to replace Larry King and the creepy Eliot Spitzer to cohost a talk show. Even solid choices like Jake Tapper seem to disappear once brought into the CNN fold. Of course, it’s hard not to disappear when your ratings are lower than those of Fox and MSNBC.

Is CNN worth saving? Absolutely. Its journalistic resources remain formidable. It’s still must-see TV when real news breaks, which certainly has been the case during the past week. Folks who are able to watch CNN International (I’m not among them) tell me it remains a good and serious news source. Anderson Cooper is among the more compelling figures in television news.

But domestically, and especially in prime time, CNN has utterly lost its way — starting at the top, with its self-congratulatory president, Jeff Zucker, who wants us to believe that everything is proceeding according to plan.

The time for a complete overhaul is long overdue. If Rupert Murdoch can help usher CNN into the hands of a new owner that might actually know what to do with it, then bring it on.

Photo (cc) by the World Economic Forum and published under a Creative Commons license. Some rights reserved.

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 reaper visits Cape Cod, New Bedford papers

In September I asked (here and here) whether Rupert Murdoch’s 33 Dow Jones community newspapers might face cuts once they were sold to Newcastle Investment Corp., which is affiliated with GateHouse Media. Over the weekend we got the answer: yes, indeed.

Screen Shot 2013-11-04 at 10.05.19 AMLocally, the Cape Cod Times and The Standard-Times of New Bedford, both of which enjoy excellent reputations, will have to make do with a lot less. Seven full-time and 10 part-time employees have been cut at the Cape Cod Media Group, which comprises the Times and several affiliated publications. Twelve newsroom jobs were eliminated, with 10 people being laid off.

Similarly, four full-timers and four part-timers were let go at the SouthCoast Media Group, which is dominated by The Standard-Times. The story does not say how many of those employees were on the news side.

Peter Meyer, the publisher of both papers, was quoted in The Standard-Times as saying:

It is important to know that new ownership is not at fault for today’s actions. Any buyer would have taken similar measures based on financial realities. This was a painful but necessary step to position the SouthCoast Media Group for future success.

Essentially the same statement ran in the Cape Cod paper. Yet Meyer also says the papers in both groups remain profitable, though not as profitable as they were in 2009. Which means that the new owners could have invested in growth — admittedly, a dicey proposition — rather than bet on continued shrinkage.

I could not find any announcement for the Portsmouth (N.H.) Herald, the third major local daily that Dow Jones sold in September. But Jim Romenesko reports that the Times Herald-Record of Middletown, N.Y., got rid of all four of its staff photographers and will now rely on freelancers — reminiscent of the move made by the Chicago Sun-Times earlier this year. Three newsroom managers were let go as well.

“I’m getting reports today of ‘bloodbaths’ at some of the former Dow Jones papers,” Romenesko wrote on Friday.

GateHouse, currently going through a structured bankruptcy, owns about 100 community newspapers in Massachusetts, most of them weeklies.

BBJ scores big on two local media stories

The Boston Business Journal has come up aces during the past week with two meaty stories on local media news.

• A shaky future at the Globe. The first, published last Friday, found that confidential financial documents put together by the New York Times Co. suggest The Boston Globe was in slightly worse shape than outside observers might have imagined when the paper and several affiliated properties were sold to Red Sox principal owner John Henry for $70 million in early August. The BBJ’s Craig Douglas writes (sub. req.):

In essence, Henry is buying into a borderline breakeven enterprise already teed up for $35 million in cost cuts over a two-year period before he even walks through the door.

How bad is it? According to the documents cited by Douglas, advertising revenue at the New England Media Group (NEMG) — mainly the Globe, the Telegram & Gazette of Worcester and Boston.com — is expected to be 31 percent below the 2009 level next year. And paid print circulation revenue continues to slip despite price increases at the Globe and the T&G.

You may have heard people say at the time of the sale that Boston.com was worth more than the Globe itself. Well, I don’t think you’ve heard me say it. Print advertising remains far more valuable than online, and that holds true at NEMG as well. Douglas writes:

The Globe is by far the biggest revenue generator of the group, accounting for 69 percent, or about $255 million, of its forecasted revenue this year. The Telegram & Gazette in Worcester is next in line at $42.5 million in forecasted revenue this year, while Boston.com is on track to book about $40 million.

Print products account for about 88 percent of NEMG’s total annual revenue. That heavy reliance on print-related advertising and circulation revenue has proven particularly problematic of late, as both categories have lost ground since 2009 and are forecasted to see continued deterioration for the foreseeable future.

Douglas’ story is protected behind a paywall, but if you can find a print edition, you should. Suffice it to say that John Henry has his work cut out for him. The picture Douglas paints is not catastrophic. But it does show that the Globe is not quite as far along the road toward figuring out the digital future as some of us might have hoped.

• Tough times ahead for local papers. The other big media splash, which I linked to last night, is Jon Chesto’s analysis of the sale of Rupert Murdoch’s Dow Jones Local Newspaper Group (formerly Ottaway Newspapers) to an investment firm affiliated with GateHouse Media. The papers sold include three prominent Greater Boston dailies: The Standard-Times of New Bedford, the Cape Cod Times and the Portsmouth Herald, on the New Hampshire seacoast.

Chesto’s article is part of the BBJ’s free offerings, so by all means read the whole thing. It’s a real eye-opener, as he explains as best anyone can at this early stage what the sale and simultaneous bankruptcy of GateHouse will mean for local papers and the communities they serve. Unfortunately, indications are the news will be very bad indeed.

Fairport, N.Y.-based GateHouse, which publishes about 100 local papers in Eastern Massachusetts (including The Patriot Ledger of Quincy, The Enterprise of Brockton and The MetroWest Daily News of Framingham), will somehow be combined with the entity that holds the former Ottaway papers into a new company with the uninspired name of New Media (that may change). (Update: Chesto is a former business editor of The Patriot Ledger, which no doubt helped him write his piece with a real air of authority. And thanks to Roy Harris for reminding me of that.)

The deal with Murdoch — at $82 million, quite a bit more than I had anticipated — was done through Newcastle Investment Corp., a real estate investment trust that is part of Fortress Investment Group, which in turn is GateHouse’s principal backer.

The powers-that-be are already talking about slashing the Ottaway papers, which are among the best local dailies in the region. Chesto writes:

The papers are described as “under-managed by News Corp.” with “expense reductions of only 6% since 2010.” Translation: We can take more out of the expenses than News Corp. did. GateHouse has been an aggressive cost cutter in recent years, most notably with efforts to consolidate most of its page design and layout functions. That work was centralized in two locations, including an office in Framingham. But it will soon be downsized further, into one location in Austin, Texas.

Yes, Murdoch, the “genocidal tyrant,” is likely to prove a better steward of local journalism than the people he’s selling to.

Post-bankruptcy, with $1.2 billion in debt off their backs, the executives now running GateHouse are going to be empowered. According to a presentation put together for investors, Chesto writes, New Media may spend $1 billion to buy up local media companies over the next three years.

Chesto doesn’t say so, but if I were working for the Eagle-Tribune papers north of Boston (The Eagle-Tribune of North Andover, The Daily News of Newburyport, The Salem News and the Gloucester Daily Times), I’d be polishing that résumé right now. On the other hand, those papers have already been cut so much under the Alabama-based CNHI chain that it’s not like a new owner could do a whole lot worse.

At a time when there are reasons to be hopeful about the newspaper business thanks to the interest of people like John Henry, Jeff Bezos and Warren Buffett, the GateHouse deal shows that there are still plenty of reasons to be worried about the future.

Murdoch sells local papers to GateHouse investor

MA_CCTRupert Murdoch is selling The Middleboro Gazette, the weekly that covers the Southeastern Massachusetts town where I grew up. I’m not sure Murdoch ever knew he owned it in the first place. It’s just something that was thrown in when his News Corporation bought The Wall Street Journal and Dow Jones in 2007.

Earlier today, Dow Jones’ chain of local newspapers — formerly the Ottaway group — was acquired by an affiliate of Fortress Investments, the majority owner of GateHouse Media, which will manage the papers. I’m not sure why GateHouse itself isn’t buying the papers, but perhaps we’ll learn more in the days ahead. Jim Romenesko has more.

Dow Jones’ regional properties include some high-quality, well-known dailies such as The Standard-Times of New Bedford, the Cape Cod Times and the Portsmouth Herald of New Hampshire.

Two questions spring to mind:

  • In general, the Ottaway papers have been spared some of the cuts that the financially struggling GateHouse chain has implemented. Will downsizing now commence? Or will the Ottaway papers’ odd status as non-GateHouse papers spare them?
  • What happens to Boston Herald owner Pat Purcell, who’s been running the Ottaway papers for Murdoch since 2008? Will he content himself with running the Herald? Or will Murdoch come up with a new assignment for him?

The deal includes 33 publications, eight of them daily papers. Romenesko reports that financial terms were not disclosed. But given that The Boston Globe recently went for $70 million — not much more than the value of its land — I can’t imagine that a significant amount of money is changing hands.

Update: From Wednesday’s New York Times:

The details of the transaction were not released, but the money involved was evidently relatively small, because if it had been bigger (or, in financial terms, material to the company) News Corporation would have had to disclose more financial information.

Ouch.

Update II: Shows you what I know. Fortress paid $87 million for the Dow Jones papers, which may be a fraction of what they were worth a few years ago, but is more than I had imagined.

According to Tiffany Kary of Bloomberg BusinessWeek, an enormously complicated reorganization is now under way. The long-in-the-making bankruptcy of GateHouse Media is now a reality, and the company will be absorbed into a new company to be created by Fortress called New Media.

Update III: Jon Chesto of the Boston Business Journal has posted a must-read analysis of what’s going on. Talk about failing up. GateHouse is going bankrupt and will become part of something bigger. And it looks like GateHouse chief executive Mike Reed isn’t going anywhere.

The Daily was on the Internet — but not of the Internet

dailyRupert Murdoch this week killed off The Daily, the tablet-centric electronic newspaper that he unveiled nearly two years ago to great fanfare and even greater skepticism.

It’s no exaggeration to say this was one experiment that was dead on arrival. Very few observers believed there was a market for a middlebrow paid digital news product aimed at a general audience. And those few were proved wrong.

It so happens that The Daily died just as I was reading “Post-Industrial Journalism,” a new report by Columbia’s Tow Center for Digital Journalism. The authors, C.W. Anderson, Emily Bell and Clay Shirky, argue that digital technology has ended the industrial model of journalism — an approach to news built around the industrial processes (printing plants, fleets of trucks and the like) needed to produce and distribute it. They credit the phrase “post-industrial journalism” to the redoubtable Doc Searls, who in 2001 defined it as “journalism no longer organized around the norms of proximity to the machinery of production.”

The problem with The Daily — or, at least, one of the problems — was that Murdoch followed the industrial model of news despite his reliance on post-industrial technology. The Daily was a centralized operation built around a daily cycle when it should have taken advantage of not being tied down to a print edition. It was essentially an electronic version of a print newspaper that offered none of the advantages of either format.

The Daily was not part of the broader Web. Social sharing was difficult if not impossible. The Daily was, well, a daily — it came out once a day, you downloaded it and that was that. No updating until the next day’s edition. At first, you could only read it on an iPad, although it eventually migrated to other tablets and to the iPhone.

With print, people are willing to put up with some of these shortcomings because of the convenience and aesthetics of ink on paper, which still haven’t lost their appeal. An online news source simply has to offer more. The Daily was on the Internet, but it wasn’t of the Internet. Its demise was inevitable.

For the Cape Cod Times, the beginning of the trail

Screen Shot 2012-12-05 at 8.40.27 AM

Image via Today’s Front Pages at the Newseum

You may have heard that a journalistic scandal is unfolding at the Cape Cod Times. A 59-year-old reporter, Karen Jeffrey, left the paper after editor Paul Pronovost and publisher Peter Meyer concluded she had fabricated sources in at least 34 stories dating back to 1998. Jeffrey had worked at the daily since 1981.

According to the apology that the paper has published, the fabrications appear to be restricted to “lighter fare,” and that Jeffrey managed to stick to nonfiction when covering hard news. That might help explain how she got away with it for so long. Then, too, fictional sources don’t call up the editor to complain.

Still, you have to wonder if anyone either inside or outside the newsroom harbored suspicions. This is a big deal — as bad as Mike Barnicle, Patricia Smith and Jayson Blair. The only difference is that Jeffrey’s downfall is playing out on a smaller stage. Count me as one observer who would like to know more.

Jim Romenekso covers the scandal here; Poynter’s Andrew Beaujon has more here; Walter Brooks of Cape Cod Today indulges in a little schadenfreude here.

Rupert Murdoch, believe it or not, actually owns the Times, a consequence of his having bought the Wall Street Journal and its affiliated properties five years ago. Boston Herald owner Pat Purcell, a Murdoch protégé, is involved in managing the Times and other Murdoch-owned community papers.

Jeffrey’s reign of error began many years before the Murdoch era. But it will be interesting to see whether Purcell is heard from as this story unfolds.

At the Boston Herald, 30 years down the road

The Boston Herald has put together a video to mark the paper’s 30th anniversary of its current incarnation. In December 1982, Hearst nearly closed the doors before Rupert Murdoch swept in and rescued the tabloid in return for concessions from the paper’s union.

The video, featuring Herald columnists Joe Fitzgerald, Margery Eagan and Howie Carr, publisher Pat Purcell (who bought the paper from Murdoch in 1994) and others, is a self-celebration over Boston’s having remained a two-daily town — rare then and even more rare today. It’s accompanied by a column in which Fitzgerald remembers the emotional rollercoaster everyone was on.

I should add that Fitzgerald was the subject recently of a touching column by his colleague Jessica Heslam following the death of his wife, Carol. Heslam’s piece has slipped into the paid archives, but John Carroll recently excerpted parts of it. Media Nation extends its best wishes to Fitzgerald and his family.

What’s next for Kevin Convey?

Kevin Convey presents an award to boxing legend Joe Frazier last August.

Obviously Kevin Convey doesn’t wear the right kind of shoes.

Word came Wednesday afternoon that Convey, a former Boston Herald editor, was being replaced as editor of the New York Daily News (via Poynter). The new boss: Colin Myler, who was editor of Rupert Murdoch’s News of the World when it was shut down amid the phone-hacking scandal. Myler was reportedly not involved, and even called out James Murdoch over his claims that he knew nothing about nothing.

According to Capital New York, Convey was seen by Daily News staffers as never quite fitting in during his two years at the helm. An unnamed source is quoted as saying that, among other things, “he dressed funny. What type of editor-in-chief wears Chuck Taylor All-Stars to work?” Well, there you go.

The shake-up at the Daily News gets a mention in the Boston Globe’s Names section today, and the Herald runs an Associated Press story that contains no reference to Convey’s Herald tenure (different in the print edition, perhaps?). The unanswered question is whether Herald publisher Pat Purcell would bring back Convey in some capacity. Convey’s a smart, interesting guy, and it would make sense to bring him in at least as a consultant, provided he wants to do it.

Now, follow the bouncing tabloid battles. Daily News owner Mort Zuckerman, whose roots are in Boston, hired Convey from the Herald, which used to be owned by Murdoch and whose current owner, Purcell, continues to have business ties to the “genocidal tyrant.”

Zuckerman’s competition, of course, is Murdoch’s New York Post. Now Zuckerman has replaced Convey with Myler, an old Murdoch hand who may be looking to get revenge. This should be fun.

Last year, David McKay Wilson profiled Convey for the Colby College alumni magazine. To shed further light on the scandal that brought Convey down, Wilson reports that Convey was wearing “black tasseled loafers” when they met — though without any socks.

“I haven’t worn socks in the summer for years,” Convey told Wilson. “I like cool beachy feet.” Hmmm.

Photo (cc) by Akira Kouchiyama and republished here under a Creative Commons license. Some rights reserved.