As Gannett seeks to hire journalists, Alden continues to ‘strangle’ them

Photo via the U.S. National Archives and Records Administration.

Previously published at WGBHNews.org.

Among those of us who follow the business of local news, there is a tendency to lump the two most notorious corporate chain owners together. Gannett Co. and Alden Globe Capital, after all, are both notorious for slashing their newsrooms to the bone. Their newspapers and websites in too many instances fail to meet the information needs of the communities they purportedly serve.

Yet there is a difference. And I was reminded of that difference recently by Rick Edmonds, who analyzes the media business for the Poynter Institute.

After a decade’s worth of cuts, Gannett is planning to bolster its reporting corps in the near future, Gannett chief executive Mike Reed told Edmonds — although he didn’t provide any numbers. Currently, Gannett employs about 5,000 journalists at its properties, which include USA Today, about 260 regional dailies and many other weekly papers and websites, including dozens in Greater Boston.

“We need to get even better,” Reed was quoted as saying. Well, OK. I would replace “even” with “a lot.” Still, such talk would be unimaginable at Alden Global Capital, whose MediaNews Group chain of about 200 papers has sparked newsroom revolts as well as demands from 21 U.S. senators that the company stop its “reckless acquisition and destruction of newspapers,” according to a recent story by Sarah Ellison in The Washington Post.

The difference between how Gannett and MediaNews are perceived may have something to do with their ownership structures.

The current Gannett is the result of a merger late last year between Gannett and GateHouse Media. Despite keeping the Gannett name, it was clearly GateHouse that got the better of the deal: Reed was the chief executive at GateHouse before assuming the same position at Gannett. The new Gannett immediately embarked on an estimated $400 million in cuts in order to pay down the debt it had taken on in financing the merger, according to the media-business analyst (and newly minted entrepreneur) Ken Doctor at Nieman Lab.

Gannett is a publicly traded corporation, which means that Reed’s ultimate goal is long-term growth and sustainability — albeit with as little journalism as the company can get away with. Reed hopes to do that by leveraging Gannett’s media holdings with digital marketing subsidiaries the company owns as well as an events business, which is obviously on hold during the COVID pandemic.

If everything works out over time, it is possible to imagine Gannett’s local news outlets staffing up and providing better, more comprehensive coverage than they have in recent years. As good as what would be offered by independent newspapers and websites? Almost certainly not. But any improvements would be welcome.

Alden Global Capital, on the other hand, is a hedge fund. And as best as anyone can tell, the company has no strategy for MediaNews Group beyond extracting as much money as it can for as long as it can. Its Massachusetts papers, the Boston Herald, The Sun of Lowell and the Enterprise & Sentinel of Fitchburg, operate on a shoestring. The Fitchburg office was closed several years ago. The Herald’s office in Braintree was recently shut down as well, although it’s unclear whether that was a temporary, COVID-related move or something permanent.

In Ellison’s Washington Post article, Alden managing director Heath Freeman tried to portray himself as a savior of journalism. “I would love our team to be remembered as the team that saved the newspaper business,” he was quoted as saying. Ellison, though, ran through a list of MediaNews papers across the country that have been so gutted that they have virtually no one to cover the news.

“Don’t buy the idea that Alden is trying to save newspapers. I don’t think any idiot would buy that,” said Dean Singleton, the owner of an earlier iteration of MediaNews Group whose own reputation as a cost-cutter looks benign by today’s standards. Freeman’s retort: “We’ve saved the very newspapers that Dean Singleton ran into bankruptcy, so take his recriminations with a grain of salt.”

Stop me if you’ve heard me say this before, but quality local news can be a key to reviving civic engagement, which in turn could help us overcome the hyperpolarization that defines our culture nationally. According to a recent survey by Gallup and the Knight Foundation, 70% of Americans believe the news media play a “critical” (30%) or “very important” (42%) role “in making residents feel connected to their local community.”

Moreover, Andrea Wenzel of Temple University, in her new book “Community-Centered Journalism: Engaging People, Exploring Solutions, and Building Trust,” found that people trust local news outlets more than they do national media.

“While national press was perceived by residents of all political backgrounds as distant, privileged, and dismissive of local culture,” she wrote, “it was not uncommon for residents to have first- or secondhand interactions with local reporters. So while participants could identify shortcomings, there was a base-level familiarity and trust.”

Those interactions are important — but they are becoming increasingly rare at the local news organizations being run by Gannett and MediaNews Group. At least there’s some reason to hope that the situation might improve at Gannett. As for MediaNews, a former reporter for the chain, Julie Reynolds, put it this way in The Nation several years ago: “Don’t just blame the Internet for journalism’s decline. Old-fashioned capitalist greed also strangles newspapers.”

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