Tag: David Smith

Trump’s threat to ABC shows that Nixon’s still the one; plus, media notes

It all goes back to Nixon. 1972 photo (cc) by Charles Harrity of The Associated Press.

Something that Donald Trump said after his disastrous debate with Kamala Harris served to confirm my Richard Nixon Unified Field Theory of Everything.

The morning after the debate, Trump called in to Fox News, and he was mighty unhappy. He began complaining about ABC News and its debate moderators, David Muir and Linsey Davis, who had the temerity to correct him when he said that undocumented immigrants are feasting on pets fricassee and that Harris and her running mate, Tim Walz, support “executing” infants after they are born. Then he issued a threat:

I think ABC took a big hit last night. I mean, to be honest, they’re a news organization. They have to be licensed to do it. They ought to take away their license for the way they did that.

Now, ABC is a network, and it doesn’t hold a license. But it does own stations in some of the largest media markets in the country, including New York, Los Angeles and Chicago. (The ABC affiliate in Boston, WCVB-TV Channel 5, is owned by the Hearst chain.) So even though no one can take away a non-existent license from the ABC network, a fact that Trump may or may not understand, he could threaten local licenses.

Which brings me to Nixon. After he won re-election in 1972, his presidency started to unravel over the Watergate scandal — and coverage of that scandal was being driven by The Washington Post. One of Nixon’s responses was to threaten (not in so many words, mind you) to pull the licenses from several television stations that the Post then owned. For instance, a close friend of Nixon’s, Cromwell Anderson, headed up a group that challenged the Post’s license at a Miami TV station. Then-publisher Katharine Graham wrote in her memoir (free link), “Personal History”:

Anderson began to move against our station in Miami in September of 1972. This happened to be the same month Nixon (as later heard on the tapes) said that The Post would have “damnable, damnable problems” about our license renewals, a phrase that was censored when the tapes were first released by the White House….

[T]he legal costs of defending the licenses added up to well over a million dollars in the 2½ years the entire process took — a far larger sum then than now for a small company like ours.

Back then, presidents and former presidents didn’t blurt out such threats on national television. They worked behind the scenes, and Graham couldn’t be sure if Nixon had a direct role in the license challenges or not. Then as now, though, allowing the government to have a say in regulating the media can lead to threats and retaliation — something that Nixon took advantage of, and that Trump would like to emulate.

Media notes

• My Northeastern journalism colleague John Wihbey and I spoke with Patrick Daly of Northeastern Global News about why some media outlets in the U.K. are charging readers an extra fee if they don’t want to be tracked by advertising cookies. I told Daly that the practice hasn’t caught on in the U.S. because most people don’t care all that much about privacy. Daly, by the way, is based in Global News’ London office, where Northeastern has a campus.

• The once-great Baltimore Sun has fired reporter Madeleine O’Neill for comments she made on the Sun’s internal Slack channel about the paper’s newish owner, Sinclair Broadcast Group chair David Smith. Among other things, the op-ed page has been running pieces by Smith’s buddies without disclosing that Smith has been funding the causes they’re pushing. Fern Shen of the Baltimore Brew has the story.

How the NY Times over-interprets its reporting about billionaire media owners

Jeff Bezos. Photo (cc) 2019 by Daniel Oberhaus.

The New York Times has published a story (free link) that calls into question the rise of billionaires who own news organizations, noting that The Washington Post under Jeff Bezos, the Los Angeles Times under Patrick Soon-Shiong and Time magazine under Marc Benioff are all losing money. True enough. My problem with the story is that reporters Benjamin Mullin and Katie Robertson try too hard to impose an ubertake when in fact there’s important background with each of those examples. Mullin and Robertson write:

All three newsrooms greeted their new owners with cautious optimism that their business acumen and tech know-how would help figure out the perplexing question of how to make money as a digital publication.

But it increasingly appears that the billionaires are struggling just like nearly everyone else. Time, The Washington Post and The Los Angeles Times all lost millions of dollars last year, people with knowledge of the companies’ finances have said, after considerable investment from their owners and intensive efforts to drum up new revenue streams.

The role of wealthy newspaper owners is something of ongoing interest to me. My last book, “The Return of the Moguls” (2018), focused on the Post, The Boston Globe and the Orange County Register in Southern California, owned by a rich Boston-area businessman named Aaron Kushner. At the time the book came out, the Post was flying high, the Globe was muddling along and the Register was failing; it eventually fell into the hands of the slash-and-burn hedge fund Alden Globe Capital. The Post’s and the Globe’s fortunes have since moved in opposite directions.

Here are the particulars that get glossed over in Mullin and Robertson’s attempt to impose an overarching framework:

• Bezos, who bought the Post in 2013, made deep investments in technology and built up the staff. The result was years of growth and profits, which only came sputtering to a halt after Donald Trump left the White House. Former executive editor Marty Baron, in his book “Collision of Power,” suggests that, over time, a disciplined approach to hiring became more lax. In other words, the Post got ahead of itself and is now in the midst of a reset. A new publisher, William Lewis, begins work this month, and we’ll see if he can articulate a strategy that amounts to more than “just like the Times only not as comprehensive.”

• Benioff bought a dog and, predictably, it’s going “woof woof.” Time was the largest of the Big Three newsweeklies, along with Newsweek and U.S. World & News Report; it’s also the only one of the three that still exists in a somewhat recognizable form. Newsweeklies succeeded because, pre-internet, you couldn’t get great national papers like the Times, the Post and The Wall Street Journal delivered to your doorstep. Not only is there no discernible reason for them to exist anymore, but the leading newsweekly these days, at least in terms of cachet, is The Economist.

• Not all billionaire owners are in it for the right reasons, and Soon-Shiong has proven to be an uncertain leader. Does he care about the Los Angeles Times or not? He’s built it up; now he’s tearing it down. He recently pushed out his executive editor, Kevin Merida, the most prominent Black editor in the country, and he’s done some truly awful things such as delivering Tribune Publishing’s papers to Alden Global Capital and more recently selling The San Diego Union-Tribune to Alden.

So what does that tell us about billionaire owners? Not much. As Mullin and Robertson acknowledge, some are doing just fine, including The Boston Globe under John and Linda Henry and The Atlantic under Laurene Powell Jobs. They could have also mentioned the Star Tribune of Minneapolis under Glen Taylor or, for that matter, The New York Times, a publicly traded company that is nevertheless under the tight control of the Sulzberger family. I don’t think the Sulzbergers are billionaires, but they are not poor.

At the moment, it seems that the only two viable models for large regional dailies is individual ownership by wealthy people who are willing to invest in future profitability and nonprofit ownership, either in the form of a nonprofit organization owning a for-profit paper, as with The Philadelphia Inquirer and the Tampa Bay Times, or a paper that goes fully nonprofit, as with The Salt Lake Tribune and The Baltimore Banner. The Banner is a digital startup that nevertheless is attempting to position itself as a comprehensive replacement for The Baltimore Sun. The Sun, in turn, was one of the Tribune papers that Soon-Shiong helped gift-wrap for Alden, and just this past week was sold to right-wing television executive David Smith.

Leave a comment | Read comments

Why we should be wary of The Baltimore Sun’s return to local ownership

The Baltimore Sun’s convoluted ownership journey took an unexpected turn on Monday. The notorious hedge fund Alden Global Capital, which acquired the paper as part of its purchase of Tribune Publishing in 2021, sold the Sun to David Smith, who’s executive chairman of the television network Sinclair. The price has not been disclosed.

Smith is a Baltimore guy, and he’s buying the Sun as an individual — that is, the Sun will not be part of Sinclair. In that respect, the deal is similar to Jeff Bezos’ purchase of The Washington Post in 2013. The Post is not part of Amazon, although the mega-retailer was enlisted to sell discount descriptions to the Post, especially during the early years of Bezos’ ownership.

We are in the early hours of the Sun deal, so we don’t know how this is going to play out. It’s striking how much fear and criticism I’ve seen given Alden’s reputation as the worst newspaper owner on the planet, infamous for slashing newsrooms, selling off real estate and making journalists work out of their homes. Normally a transfer to independent ownership would be celebrated, and, in fact, Smith might provide an infusion of cash and energy. Then again, he might also bring his toxic brand of right-wing politics to the Sun.

The Sun is the flagship of a regional group that also includes the Capital Gazette in Annapolis, Maryland, the site of a horrific mass shooting some years ago.

This didn’t have to happen. Back when Tribune was for sale, Baltimore hotel magnate Stewart Bainum reached an agreement to buy the Sun from Alden once Alden had acquired Tribune. Bainum, though, came to believe that Alden was not adhering to that agreement, and he wound up bidding for all of Tribune’s nine major-market newspapers.

Although Bainum was offering more money than Alden ($680 million versus $635 million), word at the time was that Alden’s bid was more straightforward, and the vulture capitalists won the prize. Among other things, Patrick Soon-Shiong, the billionaire owner of the Los Angeles Times and then a member of Tribune’s board, declined to stop the sale to Alden, for which he was roundly criticized.

Bainum, meanwhile, used some of his wealth to found The Baltimore Banner, a nonprofit digital venture that immediately established a reputation for journalistic excellence. It will be fascinating to see whether Smith rebuilds the Sun into a worthy competitor to the Banner, or if instead he uses it to grind his political axe.

Leave a comment | Read comments