The union at most of Tribune Publishing’s newspapers are making a bold move to stop Alden Global Capital from destroying local journalism in their communities.
Lukas I. Alpert reports in The Wall Street Journal that the News Guild, which represents workers at seven of Tribune’s nine daily newspapers, is demanding that three of the members of Tribune’s seven-person board of directors step down for violating Securities and Exchange Commission rules. The three members were appointed by Alden, a New York-based hedge fund.
One of the three is none other than Randall Smith, the subject of a brutal takedown in The Nation several years ago for pillaging his newspapers and using the money to buy 16 homes in Palm Beach, Florida, for $57 million. (OK, you can’t prove that there was a direct transfer of funds. But money, as they say, is fungible.)
Alden denies any wrongdoing in the would-be Tribune deal, in which it would acquire a majority share of some of our most important newspapers, including the Chicago Tribune, The Baltimore Sun and the Hartford Courant, for an offer valued at $521 million.
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Benjamin Franklin, publisher and postmaster general
As if local newspapers didn’t have enough to contend with, they are now being threatened by the Postal Service. According to Jacob Bogage of The Washington Post, newspapers are simply not being delivered in some parts of the country because of the recent mail meltdown. And publishers are facing a rate increase of as much as 9% in 2022, cutting deeply into their already precarious bottom lines.
“These are little, tiny rural communities, and typically papers like mine are the only sources of information about that community,” Brett Wesner, chair of the National Newspaper Association and publisher of 12 papers in Texas, Oklahoma and New Mexico, told Bogage. “Most don’t have digital coverage of any kind. Most don’t have radio stations. We are the source of community information, both in terms of covering community events but also the city council, the school board, the county commission.”
It’s not an exaggeration to say that American newspapers were built on reliable postal service and affordable rates. As the Post notes, the first postmaster general was Benjamin Franklin, who was himself a newspaper publisher. Paul Starr, in his sweeping history of journalism, “The Creation of the Media” (2004), wrote that newspapers were given a boost starting in Colonial times through postal subsidies. By contrast, European governments, more wary of the press, kept postal rates artificially high.
Because the postal system served a higher civic purpose as a news and information infrastructure upon which a self-governing populace depended, policymakers determined that the state would directly subsidize the dissemination of newspapers with low postal rates.
That policy, Pickard wrote, was supported by founders such as George Washington and James Madison and prevailed until the “market fundamentalists” of the Reagan era began to argue that the Postal Service should be run like a business and turn a profit. And, of course, that move was hypercharged under President Donald Trump, who appointed an unqualified (at best) postmaster general, Louis DeJoy, who undermined postal operations in what may have been an attempt to suppress mail-in voting and help Trump win re-election.
So why not shift to digital delivery? That option is available to larger daily papers, especially as the steep decline of advertising takes away one of the last remaining reasons for having a print edition. The Salt Lake Tribune, our only nonprofit major metro, is moving from daily to weekly print in order to save money.
But the tiny newspapers, mostly weeklies, to which Brett Wesner refers most likely don’t have that option. Their communities may not have broadband, and the papers themselves may not even have websites. Print is vital for them to be able to serve the public. Unfortunately, it looks like one of Trump’s final legacies will be to make it that much harder for them to survive.
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The Boston Globe is expanding, according to chief executive officer Linda Pizzuti Henry.
The news comes in the form of a full-page ad in Sunday’s print edition — an odd choice, given that the Globe has about 220,000 digital-only subscribers and, according to the Alliance for Audited Media, has a Sunday print circulation of about 140,000. But maybe a lot of those digital subscribers use the e-paper and saw it anyway. (Update: I’m told Henry’s message was emailed to digital subscribers last week. I can’t imagine why I didn’t see it, but there you go.)
Henry begins by thanking readers following a difficult year of pandemic, economic collapse and “an overdue reckoning around race, equity and social justice.” And, of course, she praises the Globe as a “local, independent news organization,” citing highlights such as the paper’s COVID coverage, Mark Shanahan’s article and podcast about recovering from prostate cancer and “A Beautiful Resistance,” a celebration of Black life in New England by culture columnist Jeneé Osterheldt.
Now about the expansion:
Reporters and editors will be added to beef up the paper’s innovation, political and investigative beats.
A new Health and Science section will be launched, featuring coverage from Stat News and the Globe’s staff. (Perhaps something to keep an eye on: Stat News is non-union, whereas the Globe’s union and management have been at loggerheads over a new contract for several years.)
The Rhode Island bureau is being expanded, an initiative that had been announced previously.
Particularly welcome is the news that the Globe will be “improving our mobile app experience.” I hope those improvements extend to tablets as well as phones.
We all have our quibbles with the Globe, but the past few years have been extraordinary in putting the paper on a sustainable financial footing.
Publisher John Henry announced in late 2018 that the Globe had become profitable after years of losses and cost-cutting. The paper passed the 200,000 digital-subscription mark in early 2020, a long-sought measure of viability. And when Linda Henry was made CEO of Boston Globe Media Partners in November, the company said it currently employs more than 300 full-time journalists across its three platforms — the Globe, Stat News and Boston.com.
That is an impressive number at a time when The Denver Post’s newsroom, to cite just one example, has been slashed to about 60 by its hedge-fund owner, Alden Global Capital.
The full-page ad appears below.
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I’m heartsick over the phone call revealing that President Trump tried to muscle Georgia officials into overturning the election in Georgia. Not because I thought he was incapable of such sociopathy and criminality, but because we all know that his enablers will defend him no matter what.
As a few people have observed on Twitter, the Trump presidency has now been bookended by the notorious “Access Hollywood” call tape on which he was heard bragging about sexual assault and now a call so deeply corrupt that he ought to be impeached and removed from office by early afternoon tomorrow. Of course, it’s not going to happen.
The recordings of both calls, by the way, were broken by The Washington Post.
I think a response that New York Times columnist Michelle Goldberg gave to one of her commenters recently is depressingly appropriate to the moment:
I think I used to believe … that, as Martin Luther King Jr. said, the “arc of the moral universe is long, but it bends toward justice.” I don’t think I do anymore. I certainly don’t think the United States will ever again be the envy of the world; I’m not even sure how it survives as a functioning democracy. And part of what’s so gutting is the element of random chance in our downfall. Yes, our current predicament is the culmination of long-term structural forces. But had 80,000 votes in three states gone the other way in 2016, the Supreme Court would be a force for justice rather than reaction for the foreseeable future. Had Ginsburg lived a little longer, we could have saved Roe v. Wade and many other laws protecting civil rights, workers’ rights and the environment. But she died, and so, I suspect, did the America I once expected my children to inherit.
Pretty bleak stuff. But I’m not sure I see a way out of this.
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Steve Schmidt, a Never Trump former Republican who worked for George W. Bush and John McCain, posted an astonishing thread Saturday on Twitter. I am as sick of hot takes about President Trump as the next person. But Schmidt’s analysis of the seven-part threat that Trump and his supporters continue to represent will be important to think about in the weeks and months ahead. He begins:
Trumpism is an American autocratic movement with Fascistic markers. There are seven specific parts that comprise its core 1. THE LEADER. Donald Trump is the unquestioned leader of this movement. It is a cult of personality and there are no serious challengers against his (1)
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?
Thank you so much for reading Media Nation in 2020. We always go out on the 30th, not the 31st, so we spent New Year’s Eve pretty much as we always do — with takeout pizza, the “Three Stooges” marathon and then watching the ball drop. It has been a terrible year, and not everyone made it to the finish line. I wish all of us a healthy (not just boilerplate this year) and much better 2021.
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.
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It’s time to regulate food delivery services, which are bleeding restaurants dry in the midst of the pandemic. Northeastern journalism alum and restaurateur Bessie King co-authors an important op-ed in The Boston Globe:
By acting on fee caps, the state can make it a littleeasier for restaurants to survive the winter on takeout and delivery. Together with the additional round of Paycheck Protection Program loans included in the federal pandemic relief bill signed over the weekend by President Trump as well as Governor Baker’s new relief fund, these measures can be a lifeline to help pay wages and keep businesses alive.
What can you do? When you order takeout, try to pick it up yourself. If you can’t, try ordering from the restaurant directly and asking if they have their own delivery service — many do.
Many of us have been ordering takeout as often as we can to try to keep our favorite restaurants alive until after the pandemic. Don’t undermine your own good intentions by using services that, as King and her co-authors point out, sometimes result in restaurants losing money on every order.
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.
