Tag Archives: Wall Street Journal

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.

Goldsmiths honor journalism in the public interest

b_kirtzBy Bill Kirtz

It started with one miner’s medical and legal nightmare and developed like a John Grisham novel. And finally it led to extensive reform of black lung diagnosis.

The Center for Public Integrity’s and ABC News’ yearlong work won it the $25,000 Goldsmith Prize for Investigative Reporting this week.

It took a medical database and exhaustive scrutiny of previously classified legal findings to produce the series. But Chris Hamby, the Center’s lead reporter, told a Harvard audience on Thursday that his research began with a plight “you just couldn’t ignore”: miner Gary Fox’s “outrageous” treatment by doctors and lawyers.

While Hamby circumvented privacy laws by getting miners’ consent to view their records, ABC News producer Matthew Mosk discovered a law firm that operated “like a John Grisham novel.”

As in past years, finalists for the Goldsmith awards, administered by the Kennedy School’s Shorenstein Center on Media, Politics and Public Policy, included much such collaboration between media and public service organizations. Goldsmith winners and finalists are traditionally seen as front-runners for Pulitzer Prizes, which will be announced next month.

• The International Consortium of Investigative Journalists, which bills itself as “the world’s best cross-border investigative team,” used Australian, Chinese and British reporters to reveal a universe of offshore money manipulation that has sparked international tax investigations.

ICIJ director Gerald Ryle said he was leaked 2.5 million files via hard drive and is proud that none of his operation’s anonymous informants has been caught. The 50-article series provides important context into powerful figures’ financial machinations. “We didn’t want to be Wikileaks and just dump documents,” he said.

While Ryle said his reporting was attacked in the Australian Senate and drew four libel suits, he noted that a Chinese colleague has faced even more danger. Kevin Lau, the former chief editor of the Hong Kong newspaper Ming Pao, was fired and then critically wounded in an attack last month. Ming Pao was one of ICIJ’s partners in the Offshore Leaks investigation.

• Another wide-ranging project was a bilingual multimedia revelation of widespread sexual assault against immigrant women by the Investigative Reporting Program at UC Berkeley’s School of Journalism, the Center for Investigative Reporting, “Frontline,” Univision and KQED.

Reporter Andres Cediel said it took 18 months after an anonymous tip to produce the series, which has sparked criminal charges and pending legislation. The problem: he was committed to telling their story in a human way, but the victims were afraid to talk on camera. His colleague Bernice Young said it took countless trips going door to door to gain their trust. “It was a long, slow process to build a relationship,” she said.

“Frontline” producer-correspondent Lowell Bergman, lead reporter on the project, noted that this was Univision’s first foray into investigative reporting and predicted more such efforts in foreign language media.

• Shorenstein director Alex Jones said the free weekly Miami New Times was “punching above its weight” when it tackled the steroid industry.

New Times managing editor Tim Elfrink, who noted his paper had previously done investigative reporting on a very local scale, said the series started when a whistleblower came to him irate over a $4,000 dispute. The informant gave him a bunch of confusing documents about a Biogenesis operation running out of a Coral Gables strip mall. Elfrink called thousands of clients’ phone numbers — getting rejected 90 percent of the time — but eventually scanned court records to uncover the shady records of some clinic operators.

The stories, which have won a prestigious Polk Award, led to the suspension of 13 baseball players and changed how baseball owners and players approach drug use.

• Seeking national impact and backed by supportive news executives, the Milwaukee Journal Sentinel scoured medical records throughout the country to expose potentially fatal flaws in newborn screening. Lead reporter Ellen Garber led a five-person team through a maze of withheld data and official denials.

When her data requests were denied, she had to negotiate state by state for records — finally penetrating the system by discovering that Arizona had kept detailed records of newborns babies from a small Native American tribe. She then confronted the head of that state’s health department, who finally released complete records.

Garber said the series, which has won the Taylor Award for fairness in journalism and the prestigious Selden Ring award for the year’s top investigative work, has had an “incredible impact,” revamping the system so blood samples arrive promptly.

• The Wall Street Journal’s Michael M. Phillips doesn’t consider himself an investigative reporter, but after covering the wars in Iraq and Afghanistan, he followed up his novelist brother’s discussions with a psychiatric researcher. This led to the discovery of secret lobotomies of servicemen after World War II.

His problem was to find out how widespread this pattern was. Freedom of Information requests denied, he turned to the National Archives, which he recommends as a fertile source of vintage information. He unearthed 18 boxes of surgical records filed under “L” — lobotomy. He picked the cases with unusual names, thinking their families would be easier to trace after more than 60 years. The multimedia presentation revealed that more than 2,000 servicemen were lobotomized, and he was able to portray some surviving victims.

• Putting a human face on a “numbers” story is a perennial challenge for investigative reporters.

Reuters staffers Scot Paltrow and Kelly Carr found egregious and widespread Defense Department accounting mistakes. Their editors shared the view of the subject’s importance but wrestled with how to make it interesting.

“Vast amounts of dollars resonates little,” said Paltrow. So they settled on a human-interest beginning to show how massive programs affect individuals:

EL PASO, Texas — As Christmas 2011 approached, U.S. Army medic Shawn Aiken was once again locked in desperate battle with a formidable foe…. This time, he was up against the U.S. Defense Department. Aiken, then 30 years old, was in his second month of physical and psychological reconstruction at Fort Bliss in El Paso, Texas, after two tours of combat duty had left him shattered…. But the problem that loomed largest that holiday season was different. Aiken had no money. The Defense Department was withholding big chunks of his pay.

Bill Kirtz is an associate professor of journalism at Northeastern University.

Headlines distort CBO report on Obamacare

The reaction to a Congressional Budget Office report released Tuesday demonstrated how easily politicians are able to game the media system.

The CBO, a respected source of nonpartisan data, found that the Affordable Care Act would lead to the disappearance of more than 2 million jobs — nearly all of them because people will choose to stop working or cut back on their hours now that their health insurance is no longer dependent on their continued employment. CBO director Douglas Elmendorf put it this way:

I want to emphasize that that reduction doesn’t mean that that many people precisely will choose to leave the labor force. We think that some people will chose to work fewer hours. Other people will choose to leave the labor force.

Of course, that didn’t stop Republican opponents from claiming that the CBO report proves the ACA is a job-killer. And why not? The media are so quick to go along. Let’s consider that this is Elmendorf’s report, and he said at a news conference precisely what it meant. Yet the very NPR story in which his remarks are quoted is headlined “Is Obamacare A Job Killer? New Estimates Suggest It Might Be.” Gah.

This morning I looked at the front pages of four major dailies. Here’s how they stack up, in order of disingenuousness.

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1. The Boston Globe. “Health law projected to put a dent in workforce; GOP calls analysis proof of act’s failings.” The clear impression is that people are going to lose their jobs because of the ACA. If you would like to believe that, go right ahead — but it’s not what the CBO said. The Globe headline is slapped atop a New York Times story (below) that isn’t nearly that bad.

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2. The New York Times. “Health Care Law Projected to Cut the Labor Force; Choosing Not to Work; G.O.P. Seizes On Data — Drop May Equal 2.5 Million Jobs.” Whew! Try saying it all without taking a breath. The Times’ headlines is slightly better than the Globe’s: the second deck, “Choosing Not to Work,” gets at the gist of the CBO report. But the rest of it makes it sound like Tuesday was a very bad day for the ACA. You’ve got to read the story to find out what’s really going on.

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3. The Washington Post. “New fuel for the health-law fight; CBO: More will quit jobs, cut hours; Estimates revive debate over economic effects.” Not bad. The impression given by the headline is that the fight is over the economic effect of people quitting their jobs. Not quite right, but we’re getting closer. Here’s the story.

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4. The Wall Street Journal. “Health Law to Cut Into Labor Force; Report Forecasts More People Will Opt to Work Less as They Seek Coverage Through Affordable Care Act.” Folks, we have a winner — a headline that accurately reflects what the CBO actually said. Good story, too. (To get around the Journal’s paywall, enter the headline at Google News. Don’t worry. Rupert knows about it and says it’s OK.)

The problem with deceptive or incomplete headlines is that few people get past them or the partisan attacks they reflect. What House Speaker John Boehner (quoted in the Times story) said is simply flat-out wrong: “The middle class is getting squeezed in this economy, and this CBO report confirms that Obamacare is making it worse.”

As U.S. Sen. Jeanne Shaheen, D-N.H., put it in a conversation with reporters (also quoted in the Times): “You guys are going to politicize it no matter what happens.”

Journalists need to resist the urge.

Headline images via the Newseum’s “Today’s Front Pages.”

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.

An innuendo-laden attack on Greenwald

Edward Jay Epstein has written an innuendo-laden column for The Wall Street Journal in which he strongly insinuates that filmmaker Laura Poitras and/or journalist/blogger/lawyer Glenn Greenwald of The Guardian criminally assisted Edward Snowden in leaking National Security Agency documents.

Epstein’s toxic brew of archly worded questions leads to the inescapable conclusion that he believes the two journalists ought to be investigated and possibly charged under the World War I-era Espionage Act.

Josh Stearns, who serves with Greenwald on the Freedom of the Press Foundation board, has some thoughts about journalism and the Espionage Act. He writes:

The First Amendment and press freedom questions that haunt the Espionage Act are particularly important right now. Changes in media and technology have put the tools of journalism and media making in the hands of more and more people, challenging old assumptions about who is a journalist and how journalism is done. Increasingly, independent journalists, nonprofit news outlets and citizens are playing critical roles in newsgathering and reporting on the most important issues of our time.

I don’t think Stearns gives sufficient weight to the idea that merely publishing leaked documents is, in fact, a violation of the law, and that investigative journalism depends on the hopeful notion that the government won’t use its authority. Otherwise, though, it’s a useful guide to the issues at stake.

More: Greenwald responds to the Epstein column in this Storify involving (mainly) Jeff Jarvis and Michael Wolff.

For the Cape Cod Times, the beginning of the trail

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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.

Marty Baron leaves Globe for Washington Post

Marty Baron

Weeks of rumors and speculation came to an end a little while ago with the announcement that Boston Globe editor Marty Baron will replace Marcus Brauchli as executive editor of the Washington Post. The Huffington Post has memos from Baron, Brauchli and Post publisher Katharine Weymouth.

This is a very smart move for the Post and for Baron, who’ll have the opportunity to rebuild a faded brand. Not that long ago, the New York Times and the Post were invariably mentioned in the same breath. There’s still a lot of great journalism in the Post, but the paper these days lags well behind the Times.

Brauchli, a former editor of the Wall Street Journal, got off to a rocky start at the Post. In 2009 he and then-new publisher Weymouth got embroiled in very bad idea: to put together paid “salons” featuring Post journalists, corporate executives and White House officials. As I wrote in the Guardian, there was evidence that Brauchli knew more about the salons than he was letting on.

I take Weymouth’s decision to replace Brauchli with Baron — and Baron’s decision to accept the offer — as a sign that she’s grown in the job and was able to assure Baron of it.

Baron arrived at the Globe in July 2001 to replace the retiring Matt Storin. (Here’s what I wrote about the transition for the Boston Phoenix.) Baron was executive editor of the Miami Herald before coming to the Globe, but he also had extensive experience at the Los Angeles Times and the New York Times. Many observers believed his stint in Boston would be relatively short, and indeed he was considered for a top job at the Times less than two years later.

Instead, Baron ended up staying in Boston for more than 11 years, winning six Pulitzers, including the public service award in 2003 for the Globe’s coverage of the Catholic pedophile-priest scandal. He has been a solid, steady presence — a journalist with high standards who made his mark at a time when the newspaper business, including the Globe, was steadily shrinking. He also gets digital.

Last February, at an event honoring him as the recipient of the Stephen Hamblett First Amendment Award, Baron told journalists they should stand up against the fear and intimidation to which they have been subjected. You’ll find the full text of his speech here, but here’s an excerpt:

In this environment, too many news organizations are holding back, out of fear — fear that we will be saddled with an uncomfortable political label, fear that we will be accused of bias, fear that we will be portrayed as negative, fear that we will lose customers, fear that advertisers will run from us, fear that we will be assailed as anti-this or anti-that, fear that we will offend someone, anyone. Fear, in short, that our weakened financial condition will be made weaker because we did something strong and right, because we simply told the truth and told it straight.

What’s good news for the Post is less than good news for the Globe. A new editor after 11 years of Baron would not necessarily be a bad thing, as every institution can benefit from change. But at this point it’s unclear who the candidates might be, and whether the next editor will come from inside or outside the Globe. And whoever gets picked will have a tough act to follow.

Baron will be a successor to the legendary Ben Bradlee and all that represents — the Pentagon Papers, Watergate and a boatload of Pulitzers. I think he was an inspired choice, and I wish him the best.

More: Peter Kadzis of The Phoenix has a must-read blog post on Baron’s departure. Great quote from an unnamed source: “On an existential level, I wonder if Marty gives a shit. He’s like a character out of Camus.”

Orwell, waterboarding and torture

Before the Bush-Cheney years, the New York Times and other large newspapers regularly referred to waterboarding as “torture.” After it was revealed that the United States was waterboarding terrorism suspects, those papers largely stopped. After all, President Bush explained in 2005, “This government does not torture people.”

So in true Orwellian fashion, editors decided that to describe waterboarding as torture would amount to a breach of objectivity, for no reason except that, all of a sudden, there were powerful people who disputed that characterization.

That is the conclusion of a paper released earlier this year by the Joan Shorenstein Center on the Press, Politics and Public Policy, at Harvard’s Kennedy School. Titled “Torture at the Times: Waterboarding in the Media” (pdf), the study includes the following findings:

  • From the early 1930s until 1999, the New York Times characterized waterboarding as torture in 44 of 54 articles on the subject (81.5 percent), and the Los Angeles Times in 26 of 27 articles (96.3 percent).
  • From 2002 to 2008, the New York Times referred to waterboarding as torture in just two of 143 articles (1.4 percent); the Los Angeles Times, three of 63 (4.8 percent); the Wall Street Journal, one of 63 (1.6 percent); and USA Today, not at all.
  • “[T]he newspapers are much more likely to call waterboarding torture if a country other than the United States is the perpetrator.”

The study also finds that opinion writers at those papers were more likely to associate waterboarding with the T-word than were the news columns — further evidence that news editors deviated from the long-established understanding of what waterboarding really is in order to avoid being accused of anti-administration bias.

The study concludes:

The results of this study demonstrate that there was a sudden, significant, shift in major print media’s treatment of waterboarding at the beginning of the 21st century. The media’s modern coverage of waterboarding did not begin in earnest until 2004, when the first stories about abuses at Abu Ghraib were released. After this point, articles most often used words such as “harsh” or “coercive” to describe waterboarding or simply gave the practice no treatment, rather than labeling it torture as they had done for the previous seven decades.

The Shorenstein Center has documented a shocking abrogation of duty by our top newspapers in helping Americans understand what the Bush-Cheney administration was doing in their name.

The study came out in April. I’m writing about it now because the redoubtable Jay Rosen tweeted about it yesterday. This is important stuff, and I hope Rosen has given it the push it needs to become more widely discussed.

Image via Wikimedia Commons.

What Murdoch really wants in New York

In my latest for the Guardian, I argue that the just-unveiled New York edition of the Wall Street Journal doesn’t have to beat the New York Times in order for Journal owner Rupert Murdoch to accomplish his goal. Murdoch only has to make the Times bleed.

Wall Street Journal blew Madoff story

Financial journalist and blogger Gary Weiss has been paying close attention to the congressional testimony of thwarted whistleblower Harry Markopolos — and finds that Markopolos says he tried to interest the Wall Street Journal in the Bernie Madoff story three years ago to no avail.

According to Markopolos, Journal reporter John Wilke was ready to leap in, but could never get clearance from his superiors.

Sickening. (Via Romenesko.)