Gannett announces COVID-19-related furloughs and other cost reductions

The already-barebones Gannett newspaper chain has announced massive COVID-19-related cost reductions through June, according to a memo to the staff from Maribel Perez Wadsworth, president of news and publisher of USA Today.

Employees making more than $38,000 will be furloughed for five days during each of the three months. Wadsworth says she will take a 25% pay cut, although I don’t know what she’s making now.

Wadsworth’s portfolio includes Gannett’s local newspapers and websites, including the former GateHouse properties in Eastern Massachusetts, Rhode Island and New Hampshire. Here is a list. The memo, which I obtained from a trusted source, was accompanied by an FAQ, which you can read here. The full text of her email is as follows:

All,

Let me first acknowledge all the incredible work you’ve done in the face of this pandemic that is, without a doubt, also taking a toll on your personal lives. Our strong audience and subscriber response this month show how much people rely on our news and information to make key, critical decisions that impact themselves and their loved ones.

As you’ve seen the havoc wreaked on our nation’s and the world’s economy, so too, is the uncertainty around the coronavirus outbreak increasing financial pressure on our own company. As businesses close and live events cancel across the globe for the next few months, we are seeing many advertisers and sponsors reducing or even eliminating their marketing spend. With the current pressures and so much uncertainty, it’s difficult to chart our next steps for more than the next few months.

To meet this unprecedented challenge, we are instituting a series of immediate cost reductions, including a furlough program in April, May and June across our division.

We do not take this action lightly; we know furloughs cause hardship. All of Gannett’s divisions are approaching this challenge differently, but after careful consideration of other options, we felt this was the best approach for our team.

Importantly, we will not furlough employees who earn less than $38,000 annually, and different policies will apply to a few teams whose business was impacted more severely by recent events. We are asking union representatives for their support of the furloughs as well. Senior leaders whose absence would put our integration timeline and key business operations at risk have agreed to a pay cut in lieu of a furlough (but equal to the amount each month). I will be taking a 25 percent reduction in salary during the quarter.

Furloughs will be for five business days each month of the second quarter. Exempt employees must schedule each furlough for the full business week, while non-exempt employees can be scheduled by the week or in full-day increments. Managers will approve furlough schedules to balance business needs during this time.

Your supervisor will be sharing more specifics and working with you to schedule your furlough as soon as possible. The attached FAQ should also help answer many of the questions you might have. You will see an invite from me momentarily for an Ask Me Anything session this afternoon at 2 p.m. Eastern. Please join if you can, and please submit any questions in advance to xxx.

We will get through this unprecedented challenge together. We will emerge stronger. We will continue to do important, impactful, essential journalism to serve our readers and communities. I am deeply grateful to each of you.

Sincerely,
Maribel

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From the local-news crisis to Trump’s lies, 2019 was a year to put behind us

Tucker Carlson. Photo (cc) 2019 by Seth Anderson.

Previously published at WGBHNews.org.

The devolution of Tucker Carlson. The MIT Media Lab’s entanglement with career sex criminal Jeffrey Epstein. The ever-present threat to free speech. And, above all, the ongoing corporate-fueled crisis afflicting local news.

These are the themes that emerged in my most-read commentaries for WGBH News from the past year. We live in difficult times, and my list might provoke pessimism. But given that four of my top 10 are about the meltdown of local news, I’m at least somewhat optimistic. People really care about this stuff. And that’s the first step toward coming up with possible solutions. So let’s get to it.

10. Whatever happened to Tucker Carlson? (March 12). When Fox News talking head Tucker Carlson began his journalistic career in the mid-1990s, he built a reputation as a smart, unconventional conservative, a stylish writer and (as I can attest) a charming lunch companion. Today he is a racist, sexist hate-monger and a full-throated apologist for President Trump. What happened? Although I can’t read Carlson’s mind, it would appear that he values fame and fortune over principle. In that sense, Carlson is a metaphor for nearly the entire conservative movement, with the few conservatives of conscience having been exiled to #NeverTrump irrelevance.

9. Corporate newspaper chains’ race to the bottom (Jan. 16). One year ago, the cost-slashing newspaper chain Gannett was fighting off a possible takeover by Digital First Media (now MediaNews Group), owned by the hedge fund Alden Global Capital and generally regarded as the worst of the worst. Gannett avoided that grim fate. But by the end of the year, Gannett had merged with another bottom-feeder, GateHouse Media. The first order of business: Cutting another $400 million or so from papers that had already been hollowed out, including titles that serve more than 100 cities and towns in Eastern Massachusetts and Rhode Island.

8. The move from no-profit to nonprofit journalism (May 15). A brief period of hope greeted Paul Huntsman after he bought The Salt Lake Tribune in 2016. Instead, the cutting continued, as Huntsman discovered that 21st-century newspaper economics were more of a challenge than he’d imagined. Then, last spring, he announced that he would seek to reorganize the Tribune as a nonprofit entity. Several months later, the IRS approved his application. Nonprofit ownership is not a panacea — the Tribune still must take in more money than it spends. But by removing the pressure for quarterly profits and keeping the chains at bay, Huntsman might point the way for other beleaguered newspaper owners.

7. Fact-checking and the dangers of false equivalence (Sept. 18). We have never had a president who spews falsehoods like President Trump. Much of what he says can be chalked up to old-fashioned lying; some of it consists of conspiracy theories from the fever swamps of the far right that he might actually believe. Fact-checkers at The Washington Post, CNN, PolitiFact and other news organizations have diligently kept track, with the Post reporting several weeks ago that Trump had made more than 15,000 “false or misleading claims” during his presidency. Yet the media all too often remain obsessed with balance in this most unbalanced of times. And thus Democratic presidential candidates, including Bernie Sanders and Joe Biden, are inevitably held to a higher standard, being branded as liars for what are merely rhetorical excesses or even disputed facts.

6. Yes, millennials are paying attention to the news (July 24). Millennials are often, and wrongly, caricatured as self-absorbed and caring about little other than where their next slice of avocado toast is coming from. It’s not true. A study by the Knight Foundation, which surveyed 1,600 young adults, “shows that 88 percent of people ages 18-34 access news at least weekly, including 53 percent who do so every day.” The findings matched what I’ve seen in many years of teaching journalism students: they’re dubious about the news as a curated package, but they’re well-informed, highly quality-conscious and not wedded to the notion of loyalty to specific news brands. Can we put them in charge now, please?

5. Stop letting Trump take up residence inside your head (Jan. 2). I kicked off 2019 with a list of five ideas for de-Trumpifying your life. Unfortunately, the president’s bizarre, hateful rants and policies can’t be ignored completely — but surely we can save our outrage for his truly important outbursts. Looking back, I think my best piece of advice was to pay more attention to non-Trump news, especially at the local level. We live in communities, and making them work better is a great antidote to our dysfunctional president.

4. Post-Jeffrey Epstein, some questions for the MIT Media Lab (Sept. 11). Joi Ito, a celebrated star in the media world, was forced to resign as director of the MIT Media Lab after his modified limited hangout about his financial entanglements with serial rapist Jeffrey Epstein, who committed suicide while in jail, turned out to be far more extensive than he had originally admitted. That, in turn, brought the Media Lab itself under scrutiny. In the post-Ito, post-Epstein era, questions remained about exactly how dependent the lab had become on Epstein’s money — and whether it was really producing valuable work or if some of it was smoke and mirrors aimed at impressing its mega-wealthy funders.

3. Don’t blame the internet for the decline of local journalism (Nov. 27). Following yet another round on academic Twitter arguing that we need new forms of journalism in response to the damage that the internet had done to local news, I was mad as hell and couldn’t take it anymore. Yes, technology has done tremendous harm to the business model that traditionally paid for the news. But equally to blame is the rise of chain ownership intent on bleeding newspapers dry before discarding them and moving on. From Woburn, Massachusetts, to New Haven, Connecticut, independent local news organizations are thriving despite the very real economic pressures created by the rise of Craigslist, Google and Facebook. Local news isn’t dying — it’s being murdered by corporate greed.

2. Calling out New England’s enemies of free expression (July 2). Since 1998, I’ve been writing an annual Fourth of July round-up of outrages against the First Amendment called the New England Muzzle Awards. For many years, the Muzzles were hosted by the late, great Boston Phoenix. Since 2013, they’ve made their home at WGBH News. The 2019 list included school officials in Vermont who tried to silence the high school newspaper (and lost) and a police chief in Connecticut whose officers arrested a journalist during a Black Lives Matter protest to prevent her from doing her job. And don’t miss the 2019 Campus Muzzles, by Harvey Silverglate, Monika Greco and Nathan McGuire, which focus on free-speech issues on college campuses.

1. GateHouse decimates its already-decimated newspapers (June 5). As I noted above, the Gannett newspaper chain managed to fend off the depredations of Alden Global Capital. But Alden, Gannett and GateHouse Media danced around each other all year. In the spring, GateHouse, already known for taking a bonesaw to its newspapers, eliminated about 170 positions at its papers nationwide and merged 50 of its smaller weeklies in Greater Boston into 18, a surefire way to undermine customer loyalty to the local paper. “We remain positive about the future for local media but certainly acknowledge that the business model for community news is under pressure,” GateHouse CEO Kirk Davis told me. But by year’s end, GateHouse had merged with Gannett, Davis was gone — and the cutting continued.

So what will 2020 bring? Call me crazy, but I think we’re going to see some good news on the local-journalism front. As for what will happen nationally, I think I can safely predict that the political press will continue to focus on polls and campaign-trail controversies at the expense of substance, continuing a trend documented recently by my colleagues Aleszu Bajak, John Wihbey and me at Northeastern University’s School of Journalism.

Finally, my thanks to WGBH News for the privilege of having this platform and to you for reading. Best wishes to everyone for a great 2020.

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Gannett Media’s CEO: Sorry for the layoffs, and get ready for some more

Paul Bascobert, chief executive officer of Gannett Media Corp. (apparently number two to Mike Reed in the reconfigured New Media-GateHouse-Gannett structure), has issued a memo to the troops about the just-announced layoffs.

Tom Jones of Poynter relays the news that employees have apparently been ordered to sign non-disclosure agreements as a condition of receiving severance, and that employees have been told to stop tweeting about their corporate overlords.

A copy of Bascobert’s email floated in through a window at Media Nation a little while ago. The full text is as follows:

Team,

Over the past few days, we implemented a series of staff reductions across the company. I wanted to personally let you know this happened and give you some context for the months ahead.

First, to colleagues who are leaving, I want to offer a sincere thank you for your contributions to our company. There are no easy words to say here and I am sure “thank you” probably rings a bit hollow. Please know this is not related to performance. This is the reality of trying to create an operating structure that can support our journalistic mission of protecting, connecting and celebrating local communities.

For our remaining colleagues, I would ask you to be considerate and supportive. As I have said in my town halls, we may not be able to change the reality of staff reductions, but we can define ourselves by the care and professionalism we show in the process. Please be there for people. Reach out to friends who may be hiring. Let’s take it on ourselves to get our colleagues settled into new roles as soon as possible.

The natural question at this point is “are we done?” The honest answer is No. I have tried to be very transparent with you all and not spin things in a way that you wouldn’t believe anyway, so let me tell you where we are.

We just named our leadership team and while we were able to identify this reduction, the new team will need some time to finalize their organizations and I expect there will be some additional reductions. It will take a few months to work through this process and I expect this will conclude the bulk of the synergy actions. There will be some projects that could extend beyond this time but we should be able to provide visibility to those as well.

Longer term, it should be no surprise that we will always be looking for ways to run the business more efficiently. That’s our obligation, not just to shareholders but to our employees who want us to invest in a sustainable future and our customers who want the best value in a competitive market.

These necessary actions enable us to invest in the digital talent, products and services that I have alluded to in our town halls; this is how we plan to reverse the cycle of revenue declines. We will be launching some new products over the next few months as we start to build the foundation for future growth.

In closing, I remain very optimistic and confident in our return to growth. For today though, my thoughts are with all of you during this period of transition. I can’t thank you enough for your continued dedication to delivering for our customers and for each other. It is with this kind of commitment to excellence that we build our bright future together.

With great appreciation,

Paul

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Kirk Davis leaving GateHouse Media just ahead of the merger with Gannett

Kirk Davis (via LinkedIn)

I posted this on Twitter and Facebook on Thursday, but it seems significant enough that I ought to share it here as well. Kirk Davis, chief executive officer at GateHouse Media and number two to Mike Reed in the GateHouse-New Media combo, is leaving just as the company is merging with Gannett.

I’ve known Davis for a very long time, having interviewed him for The Boston Phoenix in the 1990s when he and Mary Jo Meisner were running Community Newspaper Co. for Fidelity. CNC, which comprised more than 100 newspapers in Eastern Massachusetts, was later sold to then-Boston Herald publisher Pat Purcell, who in turn sold out to GateHouse.

In 2008, I interviewed Davis — then the head of GateHouse Media New England — for CommonWealth Magazine.

Earlier this week, Chris Faraone wrote for Boston magazine about a familiar subject: the brutal cuts in news coverage and staff at GateHouse papers in Greater Boston. It’s not going to get any better now that the company has merged with Gannett.

Although Davis’ departure is being portrayed as his decision, it’s worth noting that Don Seiffert wrote in the Boston Business Journal back in August that Davis “may not have a role at the new, combined company.” Still, it wouldn’t surprise me if Davis decided he’d had enough.

On Thursday a source sent me a memo that Reed sent to GateHouse staff members announcing Davis’ departure. I present it here in full:

TO: GateHouse Media employees
FROM: Mike Reed
RE: Kirk Davis
Date: October 31, 2019

I am writing to inform you that Kirk has shared with me that he intends to leave New Media upon the close of the Gannett acquisition. I know this decision did not come easily for him; his commitment to our company and each of you is unmatched. I have worked very closely with Kirk for the past 13 years and not only have we become great business partners, but also great friends.

I want to personally offer my deepest appreciation and respect for Kirk’s work and leadership over the years. From our roots as a small collection of local newspapers, we’ve become one of the largest publishers of locally-based media in the United States. We are nationally recognized for our growth in digital marketing services and local and national events and most importantly, celebrated for our multi-platform, local journalism. Kirk’s leadership, building and guiding a high performing organization, has led to our opportunity with Gannett. I know without doubt that Kirk will be incredibly successful in his next endeavor and we wish him all the best in that effort. I know Kirk will want to share some thoughts with you before he departs. And, we will provide channels for staff to acknowledge and commemorate Kirk’s service to GateHouse.

Please join me in thanking Kirk for his many contributions to us and our company and wishing him all the best on his next adventure.

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Bernie Sanders proves you don’t have to like journalists in order to love journalism

Bernie Sanders campaigning in Phoenix. Photo (cc) 2015 by Gage Skidmore.

Previously published at WGBHNews.org.

Bernie Sanders is an unlikely savior of journalism.

The iconoclastic senator has long had a prickly relationship with the press in his home state. According to Paul Heintz, a staff writer with the alt-weekly Seven Days, Sanders hasn’t granted a full-fledged interview in more than four years to the paper, which touts itself as the state’s largest. And Seven Days is not alone. “I would say that it’s highly unusual for an elected official in Vermont to not regularly speak to Vermont reporters,” Heintz said. “I think it’s problematic.”

Then, last month, Sanders claimed without evidence that The Washington Post covered him critically because of his attacks on Amazon, whose founder and chief executive, Jeff Bezos, also owns the Post. “The remark sounded an awful lot like the kind of criticism leveled by someone else,” said NPR’s Domenico Montanaro. That someone else: President Trump.

But apparently you don’t have to love the media to appreciate its vital role in a democracy. Because last week Sanders, an independent socialist who is once again seeking the Democratic presidential nomination, outlined a solid media-reform proposal in an essay for the Columbia Journalism Review.

“Real journalism requires significant resources,” he wrote. “One reason we do not have enough real journalism in America right now is because many outlets are being gutted by the same forces of greed that are pillaging our economy.”

Sanders devoted much of his piece to rehashing the financial crisis that has brought news organizations to their knees, especially at the local level. But he also offered some specific ideas that fall into three categories:

• Opposing media mergers such as the proposed combination of the GateHouse Media and Gannett newspaper chains as well as the CBS-Viacom deal. Media companies would be required to detail how many journalism jobs would be lost in such mergers. Employees would have an opportunity to buy their media companies. Unions would be strengthened. And ownership caps would be re-imposed on broadcast outlets for the first time since 1996 in the hopes of restoring localism and diversity.

• Swinging the antitrust club at Google and Facebook, which, as Sanders observed, now vacuum up some 60 percent of all digital advertising revenues. It’s not clear how any actions Sanders might take against the two internet giants would benefit journalism. He doesn’t help his cause by citing a flawed study claiming that, in 2018, “Google made $4.7 billion off reporting that Google did not pay for.” (Well, no, not really.) But there’s little question that both companies have benefited from free content provided by newspapers and other media outlets. At the very least, Sanders seems likely to support a temporary antitrust exemption that would allow the news business to negotiate some sort of revenue-sharing deal.

• Taxing targeted advertising — that is, ads served up based on the data that has been collected about you — and using it to fund “nonprofit civic-minded media.” This is an idea that has been promoted by the media-reform organization Free Press “to support local-news startups, sustain investigative projects, seed civic-engagement initiatives, and lift up diverse voices that have long been excluded from traditional media coverage.” Government funding of journalism is bound to be controversial, even though it already takes place to a limited degree with public radio and television. But there are ways to insulate such funding from political interference — though skepticism is certainly warranted.

Sanders’ proposal drew instant mockery from the libertarian-conservative end of the political spectrum, with Jack Shafer of Politico writing that it “folds on itself and collapses.” Jeff Jacoby of The Boston Globe added: “When you’re Bernie Sanders and your only tool is socialism, every problem looks like a capitalist to be bashed.”

But parts of Sanders’ plan are likely to resonate with the public — especially his targeting of Google and Facebook, which are increasingly unpopular for violating our privacy and harming democracy. Indeed, Sanders’ rival Elizabeth Warren beat Sanders to the punch by many months in proposing to break up Google, Facebook and Amazon.

One way that corporate media owners succeed in defending their turf is by controlling the terms of the debate. Thus you will hear that Sanders proposes to impose new regulations on an industry that, for the sake of the First Amendment, ought to be as unregulated as possible. But as the media scholar Robert McChesney has observed, the alternatives are not regulation or deregulation; rather, they come down to what kind of regulation we want — in the public interest, or in the corporate interest?

This is especially true in the case of broadcast media, which must be regulated because there are only a limited number of frequencies available. Sanders, to his credit, is not proposing the return of anti-free-speech policies such as the Fairness Doctrine and equal-time provisions. Rather, he seeks to ensure diversity of ownership while letting the content take care of itself.

Sanders may not like journalists very much, but he understands the importance of journalism. Far from being radical, his plan pulls together some strands that have been around for quite a while. Teddy Roosevelt would praise his stance against mergers and in favor of taking some sort of action against the monopolistic practices of Facebook and Google.

Whether Sanders becomes our next president or not, his proposals amount to a serious attempt to wrestle with the forces that have harmed journalism and have concentrated media power in the hands of a few. Voters and his fellow candidates should take notice.

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GateHouse Media brass touts Gannett deal in confidential message to employees

Al Neuharth in 1999. Photo (cc) by John Mathew Smith and http://www.celebrity-photos.com.

Following the completion of a long-anticipated deal to merge GateHouse Media with Gannett, GateHouse’s top two executives, Mike Reed and Kirk Davis, sent a confidential message to the troops, a copy of which was forwarded to me by a trusted source.

GateHouse and Gannett are the two largest newspaper publishers in the United States. By coming together, they have created a media colossus, albeit one whose decline continues apace. Reed and Davis’ message says in part:

We are incredibly proud of this team’s commitment to high-quality journalism and community leadership; this mission will remain at our core. The Gannett acquisition positions us as the leader in community journalism in the United States. In addition, we believe that together, we are well-positioned to address the profound changes our industry has faced in media consumption habits and advertising spend.

As you can see for yourself, the memo is mainly corporate boilerplate (and I don’t just mean the literal boilerplate on the second and third pages). For me, the main takeaway is that they say nice things about Gannett’s flagship, USA Today, which suggests that GateHouse — clearly the lead player despite being smaller than Gannett — isn’t going to mess around with Al Neuharth’s baby, at least not right away.

By the way, you’ll see a reference in the memo to BridgeTower Media, a name I was not familiar with. It turns out that’s the name for a GateHouse division that publishes B2B titles such as Massachusetts Lawyers Weekly.

The newspaper analyst Ken Doctor broke the news of the impending merger over the weekend. Keep an eye on the debt the combined company is taking on. Doctor estimates that it could be as high as $2 billion, which would seem to suggest further cuts ahead regardless of what kinds of cost efficiencies GateHouse-Gannett is able to achieve. As I wrote for WGBHNews.org two months ago, when it first became clear that the two companies would merge:

When a chain takes on debt to keep buying more properties and extracts revenues from its individual papers in order to satisfy shareholders, there is simply less money available for journalism than there would be with independent ownership.

I don’t think this was necessarily a terrible day for local journalism. MNG Enterprises, the hedge fund-owned chain formerly known as Digital First, was kept at bay, and that’s not nothing. But neither was it a good day. Committed local ownership is the key, and this merger moves us that much farther away from it.

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Future shock for GateHouse as it lays off journalists and merges its smaller papers

Previously published at WGBHNews.org.

In his book “The Inevitable,” the technology journalist Kevin Kelly writes, “The future happens very slowly and then all at once.” That seems like as good a description as any of what’s going on at GateHouse Media, the nationwide chain that owns more than 100 newspapers in Greater Boston. After years of gradual contraction, the company is suddenly laying off journalists by the dozens and merging its smaller weeklies. In fact, you might say the future has arrived as quickly as one, two, three:

1. On May 23, word began to trickle out that massive layoffs were taking place at GateHouse papers around the country. A crowdsourced spreadsheet showed that two local dailies, The Providence Journal and Worcester’s Telegram & Gazette, were especially hard hit, losing about six journalists each (the Worcester numbers include Worcester Magazine, another GateHouse title). All told, the newspaper analyst Ken Doctor wrote for Nieman Lab, it looked like about 200 people would lose their jobs, offset slightly by the addition of 30 investigative and regional positions.

2. On May 30, The Wall Street Journal reported that the giant Gannett chain, best known for publishing USA Today, had held merger talks with GateHouse after earlier fending off a hostile acquisition attempt by MNG Enterprises, the hedge fund-owned group formerly known as Digital First Media. As I wrote earlier this year, Gannett is a slightly better steward of local journalism than MNG, although it has decimated properties such as Vermont’s Burlington Free Press.

3. The next day, on May 31, I obtained a confidential memo from GateHouse New England executives informing the troops that 50 of the company’s Greater Boston weeklies would be merged into 18. Although the memo said there would be no reduction in coverage, venerable titles such as the Danvers Herald and the Ipswich Chronicle will pass into history.

In many ways it felt like the end game was at hand, even if no one knows quite what that will look like. Kirk Davis, chief executive officer of GateHouse and chief operating officer of its parent company, New Media Investment Group, expressed optimism when I contacted him, though he noted the seriousness of the situation.

“We remain positive about the future for local media but certainly acknowledge that the business model for community news is under pressure,” he said by email.

The turmoil has reached the upper echelons of GateHouse and New Media. The Boston Business Journal’s Don Seiffert reported two weeks ago that New Media’s shareholders recently rejected a compensation plan that had paid Davis $1.7 million in 2018. Share prices are down, and New Media chairman Wesley Edens has been replaced by Mike Reed, the company’s chief executive.

If the future is murky, the history is clear enough. I’ve been following the devolution of local newspapers into chain ownership for more than 25 years. I also worked briefly in 1990 for North Shore Weeklies, one of GateHouse’s predecessor regional chains. It’s a story of combining more and more newspapers in a desperate attempt to achieve economies of scale sufficient to offset the overall decline of the newspaper business. It hasn’t worked, and there is little evidence that it ever will. But it has not been for lack of trying.

Our tale begins in the 1960s, when enterprising newspaper publishers built about a half-dozen regional chains in Greater Boston. Starting in the late 1980s and early ’90s, Fidelity Capital, an arm of the investment giant, assembled many of these groups into what became Community Newspaper Co. Among the executives who passed through CNC was a young Kirk Davis, who did a stint as president and publisher.

In 2001, Fidelity cashed in by selling CNC for an estimated $150 million to Pat Purcell, then the owner and publisher of the Boston Herald. Purcell, perpetually challenged financially, turned around five years later and sold CNC to the company that would become GateHouse for a reported $225 million. At the same time GateHouse bought The Patriot Ledger of Quincy, The Enterprise of Brockton, and their associated weeklies for another $165 million. Davis had been running those papers, so the acquisition brought him back into the fold.

In 2008 I wrote about GateHouse for CommonWealth Magazine. By then Davis was president and publisher of the New England division. The company was laying off journalists, continuing a trend begun under Fidelity and Purcell. But Davis, ever upbeat, hoped GateHouse could get ahead of the curve.

“We feel that community newspapers have a very viable future and, juxtaposed against the trend overall, are performing very well,” Davis told me at that time. “I believe in it, and I believe it’s going to stay strong.”

Five years later, GateHouse went into bankruptcy, only to emerge within a few months. Since that time the company has continued to build its empire while shrinking its reporting corps.

Like many observers, I’ve been harshly critical of GateHouse’s cost-cutting measures, which in many cases have left its newspapers without the resources to meet the information needs of their communities. Newspapers in general are an endangered species. But when a chain takes on debt to keep buying more properties and extracts revenues from its individual papers in order to satisfy shareholders, there is simply less money available for journalism than there would be with independent ownership.

At the same time, it’s important to acknowledge that there is a difference between GateHouse and, perhaps, Gannett — both of which seem to be intent on developing a long-term survival strategy — and MNG, which by all appearances is squeezing the last few drops of revenue out of its papers before walking away. (In Massachusetts, MNG, which is owned by the hedge fund Alden Global Capital, controls the Boston Herald, The Sun of Lowell, and the Sentinel & Enterprise of Fitchburg.)

“GateHouse does try — unlike Alden, for instance — to make small investments in some sort of a future,” Ken Doctor wrote recently. “Its digital marketing and events business investments are examples.”

In our recent email exchange, Davis emphasized steps that GateHouse has taken to move toward sustainability, including the outsourcing of design functions to a facility in Austin, “constant engagement and surveys,” newsletters, audio, digital storytelling, data-based investigative reporting, and more.

“In New England,” he said, “we’ve recently added a regional engagement editor and regional newsletter editor. We’re also recruiting a New England investigations editor with a high focus on data.”

Davis also touted the adoption of the Accelerator Team Model, which, in essence, involves trying to do a better job of defining audiences as well as the priorities, teams, and plans needed to serve those audiences.

I asked Davis about GateHouse’s decision to cut The Providence Journal’s newsroom just as The Boston Globe was gearing up with a new Rhode Island initiative. His answer: “While we regret any involuntary staff reductions, the layoffs last month had a small impact on local reporting. My personal view on competitive threats is this: the more any local media can invest in covering our country’s local towns the better, whether we are there or not…. We’ll compete with and celebrate expansive efforts in local news.”

I also asked where he imagines GateHouse will be five years from now. Davis: “My belief is that our industry will be digitally proficient in all aspects of serving our communities. Certainly there will be fewer ‘print-based’ publications. Much is written about the likelihood or necessity of consolidation in our industry. We are one of the larger groups and hopefully our scale and investments can prove beneficial to our industry. Bigger isn’t better though, better is better. That’s where we need to focus — always.”

My own view is that independent, grassroots news organizations are going to show the way. It won’t be easy, and some will fail. But in New England, nonprofits such as the New Haven Independent and VT Digger as well as locally owned for-profit newspapers such as the Berkshire Eagle and the Portland Press Herald are simply doing a better job of covering their communities than GateHouse, Gannett, or MNG.

Nevertheless, it looks like GateHouse or a permutation of it will be with us for some time to come. Given the importance of local journalism to democracy, we can only hope that Davis, Reed, and company figure out a way to stop the endless bleeding and start growing again.

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The Wall Street Journal takes on the local news crisis

Wall Street Journal reporters Keach Hagey, Lukas I. Alpert and Yaryna Serkez weigh in today with a comprehensive overview of the crisis threatening local newspapers — a crisis that contrasts with the relative good health of the three national papers, The New York Times, The Washington Post and the Journal.

It’s well worth reading, even if there’s nothing especially new. Two quick observations:

1. Although the story pays lip service to the harmful effects of chain ownership, it doesn’t quite get at the fundamental problems: the debt amassed to build the chain, the lack of investment in technology, and the drain created by having to export a good chunk of revenues to some distant corporate headquarters.

2. The Journal also calls The Boston Globe a “notable outlier” among regional papers for its relative success in building digital subscriptions and maintaining a decent-size newsroom. The obvious if unmade argument is that other papers could do the same with committed local owners.

Globe owner John Henry is not perfect, but MediaNews Group (the new name for Digital First Media), Gannett or GateHouse would likely have cut the newsroom of roughly 220 people by another 100 or so.

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Flipping the deal: Alden hedge fund may be looking to sell Digital First to Gannett

Recently we learned that the worst of the bottom-feeding newspaper chains, Digital First Media, was seeking to acquire Gannett Co., which owns USA Today and about 100 other publications. Now the New York Post is reporting that the deal could flip the other way: Alden Global Capital, the hedge fund that owns Digital First, might sell to Gannett instead.

On a 1-10 scale of whether this is good news or bad news, I’d give it a 5.1. As I argued in a recent column for WGBHNews.org, anything is better than Digital First. No doubt Gannett ownership would be a marginal improvement for Gannett’s three Massachusetts papers — the Boston Herald, The Sun of Lowell and the Sentinel & Enterprise of Fitchburg.

But Gannett virtually invented the business model for chain newspapers of cutting journalism to the bone while driving up profit margins for the benefit of Wall Street. Just last week Gannett tore through another round of cuts at its newsrooms across the country. So let’s not get too excited.

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There are no good guys in the battle between Gannett and Digital First Media

Ben Bagdikian had Gannett’s number (1976 photo via Wikipedia)

Previously published at WGBHNews.org.

In late 2015 I paid a visit to Burlington, Vermont, to survey the damage wrought by Gannett Co., the newspaper chain that owns the Burlington Free Press. Paid weekday print circulation at the state’s largest daily had fallen from about 50,000 to 16,000. The editorial staff, which at one time was close to 60 journalists, had shrunk to around 25.

“Obviously it’s a little tougher and you do have to pick your spots,” the legendary Free Press reporter Michael Donoghue, who had just retired, told me. “We were always thought of as the newspaper of record because everything would be in there. I’m not sure there’s a newspaper of record technically in Vermont anymore.”

To be fair, what happened to the Free Press was not much different from what has happened to newspaper after newspaper across the country. Fortunately other media organizations in Vermont arose to fill the gap — Seven Days, a vibrant alt-weekly; VT Digger, a well-funded statewide nonprofit investigative project; and Vermont Public Radio, which had boosted its local coverage. Still, the Free Press and its corporate overlords at Gannett had failed at their mission of holding government and other institutions to account.

I offer this story because now we are being asked to save Gannett from the ravages of something much worse. And we should. The Wall Street Journal’s Cara Lombardo reported on Sunday that Digital First Media, the Death Star of newspaper chains, is seeking to acquire Gannett, which owns USA Today as well as about 100 other publications. Digital First owns about 50 dailies, including three in Massachusetts: the Boston Herald, The Sun of Lowell, and the Sentinel & Enterprise of Fitchburg.

Why should we care when Gannett has been doing such a poor job? Because things can always be worse. Gannett ownership has been awful in the usual way. Digital First, controlled by the hedge fund Alden Global Capital, is uniquely awful. Its decimation of the papers it owns sparked what proved to be a futile insurrection last year at its flagship, The Denver Post. Newsrooms have literally been closed, with journalists forced to fend for themselves, from the Fitchburg paper to, most recently, The Record of Troy in upstate New York.

Executives at chains such as Gannett and GateHouse Media, hardly beloved at the local level, nevertheless seem to be trying to figure out a long-term plan. Gannett has remained committed to investigative reporting. GateHouse has set up a business-services and marketing division known as ThriveHive, which, if nothing else, suggests that the company is committed to staying in business. Digital First, by contrast, appears to be engaged in what economists refer to as “harvesting” — that is, taking as much money out of the shrinking newspaper business as possible before closing the doors and turning off the lights.

“The dirty little secret that DFM [Digital First Media] learned is that — at least for now — it can sell longtime readers an inferior (or, to use the technical term, crappier) newspaper and only 10 percent each year will cancel,” writes Philly.com columnist Will Bunch. “Do the math, though, and it’s clear that much of America outside the biggest cities will become news deserts by the early 2020s.”

And to think that at one time Gannett was considered the poster child for greedy corporate newspaper chains. In his classic series of books dating back to the 1980s called “The Media Monopoly,” the late media critic Ben Bagdikian labeled Gannett as “the largest and most aggressive newspaper chain in the United States,” noting that the profit margin at some of its local papers was an “astonishing” 30 percent to 50 percent. Bagdikian also described Gannett as “an outstanding contemporary performer of the ancient rite of creating self-serving myths, of committing acts of greed and exploitation but describing them through its own machinery as heroic epics.”

So here we go again. Gannett, as bad as it has been for the communities it serves, is being held up as an exemplar of local journalism that must be saved. Talk about defining deviancy down. The newspaper analyst Ken Doctor, writing at the Nieman Journalism Lab, reports that Gannett executives may seek to wriggle out of Digital First’s hostile takeover attempt by delivering themselves into the arms of Tribune Publishing, the company formerly known as tronc. Tribune, like Gannett, is known more for its cost-cutting than for its journalism. But anything is better than Digital First.

There is a certain irony in the dilemma now facing Gannett. The company’s model of downsizing newsrooms and driving up profits helped create the crisis that faces the newspaper business today. As newspapers became less comprehensive and less interesting, they lost readers, thus prompting repeated rounds of cuts to keep those profit margins up. Not to push this theory too far — the decimation of advertising-funded news at the hands of digital media is a much larger factor. Still, Gannett-style slash-and-burn management played a role.

Now Gannett is reaping what it sowed. We should all hope that Gannett’s board is successful in fighting off Digital First. But we should also understand that this is strictly a choice between the lesser of two evils. Democracy deserves better.

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