GateHouse parent buys T&G — and its parent chain

Screen Shot 2014-11-20 at 5.26.17 PMA huge newspaper deal was announced late this afternoon. The parent company of GateHouse Media of Fairport, New York, which has been on the march since emerging from bankruptcy last year, is buying out Halifax Media Media Group of Daytona Beach, Florida. Locally, the acquisition greatly expands GateHouse’s footprint in the central part of the state: earlier this year Boston Globe owner John Henry sold the Telegram & Gazette of Worcester to Halifax.

Jim Romenesko has the memo from GateHouse chief executive Kirk Davis.

GateHouse now owns almost every significant newspaper property in Eastern Massachusetts (and beyond) other than the Globe and the Boston Herald. The Digital First papers, which include the Lowell Sun and the Fitchburg Enterprise & Sentinel, are for sale. Will GateHouse scoop them up? What about the CNHI papers, which include The Eagle-Tribune of North Andover and three other dailies in that region? How long can they hold out?

Even before its latest acquisition spree, GateHouse owned about 100 papers in Eastern Massachusetts — mostly weeklies, but also mid-size dailies such as the MetroWest Daily News of Framingham, The Enterprise of Brockton and The Patriot Ledger of Quincy. In the past year GateHouse has added the Cape Cod Times, The Standard-Times of New Bedford, The Providence Journal and — in a little-noticed move just last week — Foster’s Daily Democrat of Dover, New Hampshire, a small but legendary community daily.

GateHouse has a well-earned reputation for cutting staff and compensation, although that hardly makes it unique. The larger story is that its executives clearly believe it can be the last local-newspaper chain standing by centralizing every part of its operations that aren’t strictly tied to local news.

A considerable amount of copy editing is being moved to a facility in Austin, Texas. The ProJo has a nice new press, and no doubt it will soon be printing as many GateHouse papers as it can accommodate — possibly cutting into the Globe’s printing business. GateHouse also owns what Davis calls a “digital services agency” called Propel Marketing.

At a time when few business executives want to mess with the newspaper business, GateHouse has gone all in. How it will end is anyone’s guess. But GateHouse has been down this road before, and it ended in bankruptcy. If Kirk Davis and company have a better idea this time, we should soon find out.

More: “Copy editing” at daily newspapers traditionally refers to editing stories for grammar and style, writing headlines and laying out pages. I am told that the Austin facility’s mission is limited to page design, though some copy editors at the ProJo are losing their jobs.

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Cuts are imminent at the ProJo and the New Haven Register

The redoubtable Ian Donnis of Rhode Island Public Radio reports that The Providence Journal may shed up to 40 jobs once an affiliate of GateHouse Media has completed its purchase of the paper. Donnis’ source is impeccable: the number is included in paperwork GateHouse filed with the Securities and Exchange Commission.

Donnis does not say how many employees the Journal now has, and I was unable to find that number in recent coverage of the sale. I’ll add it if someone passes it along. Also, I assume that all 40 cuts will not be in the newsroom.

Also, Philip Eil of The Providence Phoenix takes a look (link now added) at what the sale means for the venerable paper. (Founded in 1829, the Journal bills itself as the oldest continuously published daily paper in the United States.)

In other dispiriting news, Paul Bass of the New Haven Independent reports that another round of deep cuts is imminent at the New Haven Register. Once part of the Journal Register Co., perhaps the worst newspaper chain in the country, and in more recent years a beacon of hope under Digital First impresario John Paton, the entire chain — which includes Massachusetts titles such as The Sun of Lowell, the Sentinel & Enterprise of Fitchburg and The Berkshire Eagle — is now believed to be for sale.

Local buyers exit Worcester Telegram bidding

Harry Whitin
Harry Whitin

This article was published previously at WGBH News.

This week’s Boston Globe-related media news continues, as the Telegram & Gazette of Worcester reports that the only potential local buyers for the paper have withdrawn.

Retired T&G editor Harry Whitin and Polar Beverages chief executive Ralph Crowley had been mentioned as possible buyers since 2009, when the New York Times Co. first put the Globe and its related properties (including the T&G) up for sale. John Henry, who bought the Globe late last year, told the T&G staff in November that he hoped to sell the paper to someone local, and that he might hang onto it if he couldn’t find the right buyer. (Henry also said he would keep the T&G’s Millbury printing plant — a facility that is likely to be used to print the Globe and handle its contract work, including the Boston Herald, after Henry sells the Globe’s current headquarters on Morrissey Boulevard in Dorchester. He recently confirmed that move in an interview with Boston magazine.)

Now, though, Whitin and Crowley are out, with Whitin telling the T&G’s Shaun Sutner: “For all intents and purposes, we have withdrawn from the process.”

Today’s T&G story also quotes Tim Murray, CEO of the Worcester Regional Chamber of Commerce and the former lieutenant governor, as saying that Henry should sell the paper at a discount if that means transferring it to local owners, just as the Times Co. sold the Globe to Henry out of a sense that he would prove to be a good steward. Here’s Murray:

The fact of the matter is The New York Times gave a discount to a local buyer for The Boston Globe because they had a buyer who professed to be committed to the region, Greater Boston and the journalistic mission that newspapers play. And therefore it is not unreasonable for Mr. Henry to extend that same courtesy to the residents of Worcester in contemplating a sale.

Sutner quotes me regarding two national chains — GateHouse Media, which owns about 100 papers in Eastern Massachusetts, and Digital First Media, which owns several papers not far from Worcester, including The Sun of Lowell and the Sentinel & Enterprise of Fitchburg.

Of the two, I think Digital First would be the more interesting choice. Headed by the bombastic John Paton (profiled in 2011 by David Carr of The New York Times), his company — which includes papers such as The Denver Post and the New Haven Register — has been trying to innovate its way out of the financial morass in which the newspaper business finds itself.

Digital First employs some of the most respected thinkers in digital journalism, including editor-in-chief Jim Brady and digital transformation editor Steve Buttry. Here is a press release on Digital First’s most recent initiative, Project Unbolt, which seeks to remove the “bolts” that still keep local journalism attached to the industrial processes that defined pre-Internet newspapers. Digital First also has a content partnership with GlobalPost, the pioneering online international news service founded five years ago by Boston media entrepreneur Phil Balboni. (I wrote about some of Paton’s early moves in New Haven in my book “The Wired City.”)

The Telegram & Gazette is a major media presence in Central Massachusetts. I still hope it ends up in local hands — or that Henry decides to keep it. But if it’s going to be sold to a national chain, the staff and the community could do worse than to be served by a company that is trying to revive the business of local news.