Among the worst outcomes of Stewart Bainum’s failed bid to purchase Tribune Publishing is that he lost out on an earlier deal to buy The Baltimore Sun and donate it to a nonprofit organization.
The hedge fund Alden Global Capital had originally agreed to spin off the Sun to Bainum after buying Tribune’s nine major-market dailies. That deal fell through when Bainum, a Baltimore hotel magnate, balked at Alden’s terms and tried to buy the entire chain.
So it’s very good news that Bainum appears to be moving ahead with a nonprofit venture that would compete with the Sun. Rick Edmonds of Poynter reported earlier this week that Bainum is advertising for a chief product officer who’ll work for a “well-funded startup” aimed at becoming “a new paradigm for digital first, cross-channel local media.”
The project will include the web, mobile, terrestrial and satellite radio and video, both on television and online, according to the ad, which adds that the “vision is to be the leading provider of news and lifestyle content in the Baltimore area.”
Bainum was originally willing to pay $65 million for the Sun. Assuming that money is still on the table, this should be a well-funded regional news product. Bloomberg and the Lenfest Institute are involved, too, though Edmonds suggests their role will be minimal.
One aspect I find interesting is the cross-platform nature of the project. The biggest challenge facing online-only media is getting the word out that they exist. As a former newspaper executive once told me, the problem with dumping the print edition in favor of digital is that print is essentially a billboard for digital. If print goes away, you disappear to non-subscribers. Bainum might avoid that problem by moving into radio and television as well as digital.
I also wonder whether there’s an underlying strategy to wrest the Sun away from Alden. Given the way the hedge fund is already decimating its holdings, which include the Chicago Tribune, New York’s Daily News and the Hartford Courant, there is little doubt that the Bainum project will be a better, more comprehensive news organization than the Sun on the day that it debuts.
If the Sun’s audience and advertisers (yes, nonprofits can accept ads) move en masse to Bainum’s venture, Alden might prove willing to walk away.