Patrick Soon-Shiong. Photo (cc) 2014 by NHS Confederation.
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Could the billionaire surgeon Patrick Soon-Shiong save Tribune Publishing’s newspapers?
A report in today’s Wall Street Journal on Alden Global Capital’s bid to grab majority control of the company notes that Soon-Shiong is Tribune’s second-largest shareholder. Soon-Shiong bought the Los Angeles Times, The San Diego Union-Tribune and a bag of balls from Tribune in 2018 for about $500 million. Alden proposes to pay $521 million to up its share of Tribune from 32% to more than 50%.
Despite a somewhat rocky tenure, Soon-Shiong has invested in the L.A. Times similar to the way John and Linda Henry have with The Boston Globe and Jeff Bezos with The Washington Post. Saving Tribune papers such as The Baltimore Sun, the Daily News of New York and, closer to home, the Hartford Courant would be a tremendous act of civic leadership. And maybe an owner who’s actually interested in journalism could figure out a way to turn a small profit without stripping their newsrooms.
Soon-Shiong has plenty of money, but there are two big questions: Does he have the ambition to be a newspaper mogul on the order of William Randolph Hearst? (Even the modern-day mogul Rupert Mudoch owns just a handful of U.S. papers, including the Journal.) And can anyone restore Tribune’s papers to their former glory?
The iconic Chicago Tribune Tower, sold for mixed-use development in 2016.
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It looks like 2020 is going to end on a suitably terrible note for the future of local and regional news.
The New York-based hedge fund Alden Global Capital, notorious for depriving its newspaper chain of staff, resources and even office space, is planning to make a play for majority control of Tribune Publishing Co., which owns such storied titles as the Chicago Tribune, The Baltimore Sun and New York’s Daily News. The Wall Street Journal broke the news on Wednesday.
Alden has owned 32% of Tribune for a while and, as Julie Reynolds reports for the union publication NewsMatters, has essentially been calling the shots. She writes:
The hedge fund has left its classic stamp of profiteering across the news chain’s operations — letting Tribune’s digital efforts flounder where other chains have thrived, shutting down newsrooms and offices after defaulting on rent, slashing reporter and other staff pay during the pandemic crisis, and now being sued by shareholders — all while Alden’s officers on the board are handsomely rewarded for this “performance.”
As Reynolds notes, Tribune has been closing newsrooms — including just this week at the Hartford Courant, the oldest continuously published daily paper in the country, according to Western Mass. Politics & Insight. The move comes not long after the Courant outsourced its printing to The Republican of Springfield.
Alden’s own MediaNews Group papers have been shutting newsrooms as well. In Massachusetts, the Enterprise & Sentinel of Fitchburg was rendered homeless several years ago. During the summer, Northeastern journalism student (and “Beat the Press” intern) Deanna Schwartz and I learned that the Braintree office of MNG’s Boston Herald had apparently closed, with operations moved to The Sun of Lowell, another MNG property.
Of course, it’s at least theoretically possible that new newsrooms will be found for some of these papers after the pandemic has ended. A number of papers — including The Boston Globe — have kept their offices even though nearly all of their employees are working from home. That’s an expensive proposition. Still, it would hardly be a surprise if Alden decides that what few journalists it still employs can work from home indefinitely.
That would be a mistake. News organizations, like most businesses, thrive on collaboration and ideas that bubble up from teamwork. Then again, there is no sign that Alden executives care.
Tribune’s daily newspapers are, for the most part, larger and have more vitality than MNG’s collection of dailies and weeklies. The metros that MNG publishes, such as The Denver Post, The Mercury News of San Jose and the Orange County Register, have already been trashed beyond recognition. Earlier this fall, Larry Ryckman, co-founder of the start-up Colorado Sun, said at a conference that at one time the Post and its now-defunct daily competitor, the Rocky Mountain News, employed about 600 journalists. Today, he said, the Post has about 60.
If Alden succeeds in grabbing majority control of Tribune, it will represent the latest step down in a long fall that began with its acquisition by the foul-mouthed Chicago real-estate mogul Sam Zell in 2008. The Zell years were the subject of a monumental takedown by the late New York Times media columnist David Carr in 2010, with Carr describing a culture that “came to resemble a frat house, complete with poker parties, juke boxes and pervasive sex talk.” Oh, and they were pillaging the company, too.
Later, under new owners, the company was renamed tronc Inc. — and yes, that’s a lowercase “t” that you see.
In 2018, the billionaire surgeon Patrick Soon-Shiong managed to wrest the Los Angeles Times and The San Diego Union-Tribune from tronc’s clutches. And though the Soon-Shiong era has not been without bumps in the road (including an ugly internal dispute over racial justice), his wealth has given his papers a future.
As for the papers now controlled or soon to be controlled by Alden Global Capital, the future is likely to be nasty and brutish, to take John Locke Thomas Hobbes out of context. Whether it will also be short remains to be seen.
Gov. Charlie Baker. Photo (cc) 2020 by Josh Qualls / Governor’s Press office.
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Poynter has rounded up some of the highest impact local stories of 2020 — and among them is “The Color of Public Money,” a series produced by my friends at GBH. Paul Singer, investigations editor for the GBH News Center for Investigative Reporting, recounts his work revealing that the state had failed to live up to its promises in helping minority-owned businesses. Singer writes:
We first established that the value of state spending with minority-owned businesses has DECLINED over the past 20 years (adjusted for inflation). We then established that during Baker’s administration, the state began padding those numbers, taking credit for a bunch of stuff that is not actually “spending” by state agencies.
As a result of Singer’s work, Gov. Charlie Baker created a new state agency and has promised improvements.
Other stories in the Poynter roundup include secrecy over inmate deaths in Montana, a foundation in Miami that provides bloodhounds to law-enforcement agencies, a motorcycle gang that incited violence at a Black Lives Matter rally in Ohio, child hunger in West Virginia, and fake news about a bus in Columbus, Ohio, that was falsely claimed to have been used by rioters.
The Poynter roundup underscores the importance of local and regional journlism. National news organizations like The New York Times, The Washington Post and The Wall Street Journal are doing well, but community news is shrinking. During these final two days of 2020, I hope you’ll consider a donation to NewsMatch, which will double what you give to support nonprofit news. I gave earlier this week.
This year, NewsMatch added a new feature — rather than trying to figure out which nonprofits you want to support, you can just give to NewsMatch and let them figure out where your dollars can be put to the best use.
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Update: Hauser’s departure was one of eight layoffs or voluntary buyouts, according to publisher Michael Moses. Joan Livingston, the editor-in-chief of the Greenfield Reporter, will become editor-in-chief of the company’s Pioneer Valley papers, a newly created position. And in an especially ominous sign, Moses uses the word “rightsize.”
Original item: I’m not sure how a daily newspaper is supposed to continue without its top editor. But Brooke Hauser, editor-in-chief of Northampton’s Daily Hampshire Gazette, tweeted earlier this morning that her job has been eliminated.
And… I was just told my job was “eliminated.” I love my staff, I love this paper, and I love this community. What a shame.
Josh Stearns, who lives in the Northampton area and has been working on projects related to the future of journalism for many years, expressed his condolences:
The Gazette is part of the Newspapers of New England chain, anchored by the Concord Monitor of New Hampshire, and is regarded as one of the better ownership groups. If anyone knows what happened, please feel free to send me an email or post something in the comments. But it looks like COVID-based advertising collapse has claimed another newspaper job.
The Church Street Marketplace in Burlington, Vermont. Photo via Pixabay.
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The Boston Globe’s Mark Shanahan today takes a look at two independent Vermont news organizations that have expanded to fill the gap created by the hollowing out of Gannett’s daily Burlington Free Press. (I’m quoted.)
It’s a topic of particular interest to me because I included a section on the media ecosystem in and around Burlington in my 2018 book, “The Return of the Moguls.” Though most of the book is about the rise of a new class of wealthy newspaper owners, I thought what was happening in Vermont was worth including.
Shanahan writes about the for-profit alt-weekly Seven Days and the investigative nonprofit VT Digger, both of which are doing great work. To those I would add a third — Vermont Public Radio, which has expanded its local coverage in recent years.
During my reporting trip to Vermont in late 2015, I got to meet the folks in charge of Seven Days and VT Digger, and connected with a former student who was then working for VPR. I also visited the Free Press newsroom. The impression I came away with was that the Free Press was trying to manage decline, whereas the alternatives were mission-driven and growing.
It’s phenomenon I’ve seen before, and it’s why I’m guardedly optimistic about the future of local news. My 2013 book, “The Wired City,” is primarily about the nonprofit New Haven Independent. Launched in 2005 and still going strong, the Independent provides paper-of-record coverage of New Haven in the shadow of the New Haven Register, the corporate-owned daily. (Now owned by Hearst, which has done a better job with its papers than most chains.)
Along with my research partner, retired Boston Globe editorial-page editor Ellen Clegg, I’m currently working on a book that will tell stories from across the country about entrepreneurial journalists who are rising up to compete with failing legacy newspapers. Our work was disrupted by the COVID pandemic, but we plan to get back to it later this spring.
As I have argued for years, the greed of corporate chain ownership is at least as damaging to the health of local journalism as the technology-driven decline of advertising.
Congress is considering several measures to help local news outlets, including subscription and ad subsidies. Any owner that ships jobs out of the country should be ineligible.
Comments are open. Please include your full name, first and last, and speak with a civil tongue.
Karen Andreas is out as publisher of The Eagle-Tribune of North Andover and its sister papers, which include dailies in Salem, Newburyport and Gloucester. It seems pretty sudden. I don’t know any details. A friend sent this along.
Comments are open. Please include your full name, first and last, and speak with a civil tongue.
The Boston Business Journal today published an editorial supporting the creation of a state commission to study the decline of local journalism in Massachusetts and to offer some recommendations. The bill is currently being considered by legislators in the form of a House amendment to the economic bond bill. The editorial is behind a paywall, but I have a workplace subscription. Here’s the kicker:
This amendment is just a first step, but a necessary one, to understanding what’s driving the steady decline in local journalism and what can be done to strengthen it again. We urge lawmakers to make this small investment in the future of our state’s democracy. It’s time to make local journalism a priority and endorse the amendment.
The editorial also references a letter of support that my colleagues and I at Northeastern University’s School of Journalism sent to the six members of the conference committee this week. If you’re so inclined, you can send emails to their offices. The House directory is here, and the Senate directory is here. The conference committee members are:
Sen. Eric Lesser, co-chair
Rep. Ann-Margaret Ferrante, co-chair
Sen. Michael Rodrigues
Sen. Patrick O’Connor
Rep. Aaron Michlewitz
Rep. Donald Wong
Ongoing kudos to Rep. Lori Ehrlich, D-Marblehead, who has been pushing for this measure for nearly two years. I’ve provided some assistance, and would be a member of the commission as the language is currently written.
I understand why some people are skeptical about the government getting involved in questions about the financial viability of local news. My response is that this is a modest step. I’d like to see an effort to identify independent local projects that are succeeding, find out what makes them tick and come up with some ideas to encourage more people to launch such projects in their own communities.
Comments are open. Please include your full name, first and last, and speak with a civil tongue.
We’re down to the wire with a legislative proposal to create a special commission that would study the condition of local news in Massachusetts. You can learn more about it here. Currently a conference committee is hashing out the details of an economic bond bill; the commission has been included as an amendment to the House version.
My colleagues in Northeastern University’s School of Journalism have signed a letter to the six members of the conference committee urging them to support the amendment creating the news commission. If you are so inclined, I hope you’ll add your voice. Some disclosures: I was involved in proposing the commission; I testified in favor of it last year; and I would be a member if the measure is adopted as written.
There’s never been a more crucial time for local news. Gannett, a national corporate chain that owns dozens of daily and weekly papers and websites in Greater Boston and environs, is staggering under debt and continues to cut, as Don Seiffert reports in the Boston Business Journal. This is also the time of year when you can donate to a local nonprofit news organization through NewsMatch and have your contribution doubled. And don’t forget that today is #GivingTuesday.
Our letter to the conference committee follows:
***
November 30, 2020
To the members of the conference committee:
Senator Eric Lesser, Co-Chair
Representative Ann-Margaret Ferrante, Co-Chair
Senator Michael Rodrigues
Senator Patrick O’Connor
Representative Aaron Michlewitz
Representative Donald Wong
Community life and civic engagement are not possible without reliable, verified news and information. Unfortunately, local journalism is in the midst of a crisis. According to one widely cited study, more than 2,100 American newspapers have closed their doors over the past 15 years as Craigslist, Google, and Facebook have scooped up most of the advertising revenues that once paid for journalism. The COVID-19 pandemic has made the situation worse. And newspaper chains owned by Wall Street speculators and hedge funds have robbed local news executives of the revenues they need to invest in the future.
Which is why we faculty members at Northeastern University’s School of Journalism urge you to approve an amendment sponsored by Representative Lori Ehrlich — part of the House version of the Economic Bond Bill — that would create a special commission to study local news in Massachusetts and recommend some possible courses of action. The commission would comprise legislators, academics, journalists, and news-industry experts.
Massachusetts remains well-served by regional sources of news, including a robust daily newspaper, public media companies, and multiple television newscasts. At the local level, though, the picture is grim. Corporate ownership has resulted in the hollowing-out of dozens of newspapers across the Commonwealth. In all too many cases, these news outlets are failing to meet the information needs of the communities they ostensibly serve.
A commission could, among other things, shine a light on a number of independent news projects that are doing well in the hopes that they might inspire residents of other communities to undertake similar projects. A commission could also identify best practices and recommend legislation and policies to encourage local ownership or make it easier to start a nonprofit news organization.
Such efforts are urgently needed. Please approve the amendment and allow the commission to be formed and to begin its important work.
Sincerely,
Jonathan Kaufman, Director Belle Adler, Emeritus Mike Beaudet
Rahul Bhargava
Matt Carroll
Myojung Chung
Joanne Ciccarello
Nicholas Daniloff, Emeritus Charles Fountain
Michelle Hagopian
Meg Heckman
Carlene Hempel
Jeff Howe
Dan Kennedy
William Kirtz, Emeritus Laurel Leff
Dan Lothian
Peter Mancusi
Meredith O’Brien
Walter V. Robinson, Emeritus Jim Ross
Jody Santos
Alan Schroeder, Emeritus Jeb Sharp
John Wihbey
Dan Zedek
Comments are open. Please include your full name, first and last, and speak with a civil tongue.
At the dawn of the Trump presidency four years ago, the journalist James Fallows offered a prescription for overcoming the anger and divisiveness that had given rise to Donald Trump’s toxic brand of right-wing populism: a renewed engagement with community life.
“At the level of politics where people’s judgments are based on direct observation rather than media-fueled fear,” Fallows wrote in The Atlantic, “Americans still trust democratic processes and observe long-respected norms.”
Fallows and his wife, Deborah Fallows, later wrote an entire book on the topic. But their advice was not heeded. President Trump sucked up every bit of oxygen and energy, from the Resistance to impeachment, from COVID and economic collapse to his racist rhetoric, his cruel policies and his sociopathic Twitter feed.
“We need a world in which we talk less about the president,” lamented Cardozo School of Law professor Ekow Yankah last week. “It’s not healthy.” That Yankah was being interviewed on a podcast called “Trumpcast” suggests the depth of the problem. Even now, Trump is dominating the news to a far greater extent than President-elect Joe Biden — and not in a good way. Rather than living locally, we spend all our time thinking nationally. It’s exhausting and leaves us feeling angry and alienated.
Our media in many ways are a reflection of our politics. The Trump years were very good for national news organizations like The New York Times, The Washington Post, NPR and, God help us, cable news, especially Fox. And they were very bad for local media, especially community newspapers.
To renew civic life, you first need to renew local, independently owned newspapers and other media. I’m not talking about major regional newspapers, public radio or local TV newscasts. I’m talking about the hard but rewarding work of keeping tabs on city councils, school committees, zoning, police, development, neighborhoods and racial justice.
“There is a direct correspondence between the closing of newspapers and the polarization of people formerly served by those newspapers,” wrote Marc Ambinder, a senior fellow at the USC Annenberg Center for Communication Leadership and Policy, in a recent essay for MSNBC.com. He added: “If we want a society where we can accurately understand the preferences and behaviors of everyone, we need more local journalism.”
Unfortunately, it has become nearly impossible to pay for such journalism. The causes are familiar, from the collapse of digital advertising for everyone except Google and Facebook to the rise of corporate and hedge-fund ownership that bleeds local newspapers dry.
The COVID pandemic has made the financial situation facing news organizations that much worse. According to CNN reporter Kerry Flynn, two major publicly traded chain newspaper owners, Gannett and Tribune Publishing, are near collapse. Gannett’s ad revenues were down 38% in the second quarter over the previous year and down 23% in the third quarter. Tribune was down 48% in the second quarter and down 38% in the third.
Between them, the two companies own hundreds of local papers that had been hollowed out even before the pandemic. And unlike national papers like the Times, the Post and The Wall Street Journal, these companies have barely gotten started on charging readers for digital access.
So what is to be done? As I’ve written a number of times previously, I think we need a variety of solutions; one approach is not going to work in every community. For-profit, nonprofit, cooperative ownership, even volunteer-driven projects are all doing good work in cities and towns across the country. But they remain the exception, and the overall picture continues to darken.
Rick Edmonds of Poynter reported recently that Congress is considering a number of ideas, including tax credits for subscribing to a local news source, tax relief for publishers, advertising subsidies, and an antitrust exemption that would allow the news business to negotiate as one in an attempt to extract some revenues from Google and Facebook.
“Congress has pretty much decided it should come to the aid of local news,” Edmonds wrote. “The question of how remains, together with making the help timely.”
In Massachusetts, a bill that would create a special commission of journalists, academics and legislators to study the extent of the local-news crisis has gotten bogged down in committee, though I’m told that it could pass before the end of the year. (Disclosure: I’ve worked on the measure with state Rep. Lori Ehrlich, D-Marblehead, and would be a member of the commission.)
Needless to say, a commission isn’t going to fix what’s ailing local news. Yet if we’re going to have any chance of revitalizing civic engagement and closing the chasm that has come to separate us, we need to find a way.
In late October, The Inquirer and Mirror of Nantucket announced that the longtime editor and publisher, Marianne Stanton, along with a local businessman named David Worth, were buying the paper back from Gannett, which had owned it for a number of years.
“I think it’s pretty cool that two Nantucketers, both descendants of the early settlers, could work together to pull this off,” said Stanton in the announcement.
I think it’s pretty cool, too. It’s hard to know what, if anything, it will lead to. But it was a step in the right direction as well as very good news for the civic life of one community. Maybe it will be the start of something.
