Congratulations to the staff of the Las Vegas Review-Journal, which fearlessly revealed Wednesday night that the money behind its new owner is casino mogul Sheldon Adelson. Adelson is not normally the shy, retiring type, but in this case he tried to keep his ownership interest a secret. Predictably, his cover was blown within days.
So my conspiracy theory that the sale involved some sort of a shell game being played by New Media and its sister company, GateHouse Media (which will continue to manage the Review-Journal), proved not to be the case. But there is an interesting Boston alt-weekly angle to all this that’s worth keeping an eye on.
As had been reported earlier in the week by the Review-Journal and others, a newspaper executive named Michael Schroeder is listed as a manager of News + Media Capital Group, the newly formed company that bought the Review-Journal and several smaller papers for $140 million. And Schroeder, whose holdings include Connecticut’s New Britain Herald and Bristol Press, is the former publisher of BostonNOW, a free tabloid that competed briefly with Metro Boston.
The founder of BostonNOW was a well-known local entrepreneur, Russel Pergament, who began his career as an ad salesman extraordinaire for The Real Paper, which competed with The Boston Phoenix during the 1970s. Pergament later founded the Tab chain of high-quality community weeklies in Boston’s western suburbs.
During the ’90s Pergament sold out to Fidelity, which was then amassing a Greater Boston chain of weeklies known as Community Newspaper Company, or CNC. Fidelity eventually sold CNC to Boston Herald publisher Pat Purcell, who turned around several years later and offloaded them to GateHouse Media, based in Fairport, New York, a suburb of Rochester. Pergament’s creation still survives, sort of, in the form of GateHouse-owned papers like the Newton Tab. Perversely, the Tab papers are not longer tabs.
After folding BostonNOW, Pergament moved to New York, where he started a similar free tabloid called AMNewYork—which, like BostonNOW, competed with the local version of Metro.
Will Pergament, through his connection with Schroeder, have any involvement in News + Media? Here’s what the Review-Journal reported on Tuesday, before the Adelson connection was definitively confirmed:
Pergament, BostonNOW’s publisher and CEO, is CEO of NAN Holdings, a Massachusetts venture capital fund that helped finance the startup of Jewish News Service.
JNS has an exclusive agreement to distribute content from Israel Hayom, an Israeli newspaper owned by Adelson. Both JNS and Israel Hayom have been widely criticized for a perceived tilt in favor of far-right Israeli politicians.
Pergament has not responded to requests for comment.
Given that most observers believe Adelson wants to own the Review-Journal so that he can use it as a platform for his views on Israel—including strong support for the government of Prime Minister Benjamin Netanyahu—it’s not hard to imagine a role for Pergament somewhere. Indeed, he and Adelson are already business partners.
I’m going to email this to Pergament at the last known address I have for him and update it with his comments if he responds.
Correction: The original version of this post misstated the location of GateHouse Media’s headquarters.