Tag: John Henry

How Brian McGrory talked John and Linda Henry into buying The Boston Globe

John and Linda Henry have owned The Boston Globe for nearly nine years, but they have never hired an editor. Brian McGrory, who announced Wednesday that he’ll be leaving at the end of the year to become chair of Boston University’s journalism department, had been named to the top newsroom job during the final months of New York Times Co. ownership. In this excerpt from my 2018 book, “The Return of the Moguls,” I tell the story of how McGrory recruited the Henrys to stave off the possibility of corporate chain ownership.

Rumors that The Boston Globe might be for sale began circulating as far back as 2006, when a group headed by retired General Electric chief executive Jack Welch, who was a Boston-area native, and local advertising executive Jack Connors was reported to be nosing around. At the time, the Globe was said to be valued at somewhere between $550 million and $600 million, vastly more than the price John Henry paid seven years later. But the New York Times Co. wasn’t selling — at least not yet. The following year, Ben Taylor, a former publisher of the Globe and a member of the family that had owned it from 1873 until selling it to the Times Co. 80 years later, told me in an interview for CommonWealth magazine that he might be interested in returning to ownership in some capacity if the Globe were put on the market. But he added that he thought such a development was unlikely. “I can’t imagine a scenario where that would be an opportunity,” he said, “but you never know, I guess. Stranger things have happened.”

Ben Taylor and his cousin Stephen Taylor, also a former Globe executive, became involved in a bid to buy the paper in 2009 when the Times Co. finally put the paper on the market. So did a Beverly Hills, California-based outfit known as Platinum Equity. With the Taylors thought to be undercapitalized and with Platinum having gutted the first newspaper it bought, the San Diego Union-Tribune, Globe employees were understandably nervous about their future. Although it was not a matter of public knowledge at the time, there was also a third possibility. After the Times Co. put up the Globe for sale, Brian McGrory, a popular columnist who was then serving a stint as the paper’s metro editor, decided to call around town to see if any public-spirited business executives might be interested. Among those he contacted was John Henry.

“I asked him at that time why he wouldn’t flip the paradigm,” McGrory told me. “It used to be that newspapers would own sports franchises. Why not have a sports franchise owner own a newspaper? Because without a healthy Boston Globe, which causes community discussion about a sports team — I made the argument, right or wrong; I have no idea if it was right — the value of a sports team might be diminished. And I did it because I thought he would be a very thoughtful, steady owner.”

Read the rest at GBH News.

Linda Henry on McGrory: ‘Brian has led with empathy and humanity’

Boston Globe Media chief executive Linda Henry has sent a memo to the staff about the pending departure of Brian McGrory, forwarded to me once again by a trusted source.

Next chapter for Brian McGrory

Hi everyone,

Around his third year as editor, Brian told me that this was a 7 to 10 year role for him.  He understood the demands of the position as well as the constantly evolving needs of this organization. While the 10 years always seemed safely far away, Brian was apparently being precise, because he restarted the conversation earlier this year in advance of his pending 10-year anniversary. We’ve been talking thoughtfully in the months since about what’s next – for Brian and for the newsroom.

Brian misses his column – a fact he can barely conceal. Many of our readers still talk about his column – with the humor, the humanity, and the insight that he brought to our pages – even, surprisingly, folks from Hingham. His dream when he was young and delivering the paper was to write for The Boston Globe, and luckily for us and our readers, that is what his next chapter will include – a return to column-writing at the Globe, this time on the Opinion side. He will also be channeling his talents and experience to help the next generation of journalists as he takes on the prestigious role as Professor of the Practice and Chair of the Journalism Department in the College of Communication at Boston University.

For the past ten years, Brian has been a vital part of the leadership of this organization as we embarked on a radical transformation. He gave the Globe the greatest advantage that a media organization can have: unrelentingly high journalistic standards, an innovative mindset, and a deep commitment to the communities that we proudly serve. How many times has he told us, and then told us again, that we needed to be the paper of interest, not the paper of record, and that we had to be “relentlessly interesting”?

When John and I joined the Globe in 2013, we were dealing with an enormous amount of pressure and change at once: building a new production facility, reworking the business model, rebuilding the entire digital infrastructure, launching Stat, building and moving to modern offices, investing in data analytics, and so much more. Through all of that, Brian was there to share his deep understanding of journalism, his decades of institutional knowledge, and was helping us drive the kinds of new strategies that would help grow and sustain our business – all while keeping the newsroom grounded in its mission and values. As part of our Senior Leadership Team, Brian forged strong partnerships with other departments in the organization, experimenting together on ways to amplify our journalism and to attract and retain subscribers.

As editor, Brian has led with humanity and empathy, steering the Globe’s coverage through a decade of some of the biggest and most challenging stories in our region’s history and of our time – including the Boston Marathon bombings, a national racial reckoning, and a global pandemic. He has overseen the incredible journalism that has resulted in the Globe newsroom winning three Pulitzer Prizes (Opinion won another two in that time). The newsroom has been finalists an additional twelve times, and along with a long list of other national awards, the Globe is currently a finalist for the Online Journalism Awards General Excellence in Online Journalism category for the second year in a row.

His effort to lead a reinvention of the Globe’s newsroom engaged the entire staff and created new roles, beats, and departments, to drive changes within our industry and to lay the groundwork for strong digital growth. Today, the Globe is arguably the most successful regional news organization in the country.

As the Globe celebrates its 150th anniversary, we have tremendous appreciation for the incredible contributions of everyone across the organization. John and I are especially grateful for Brian’s leadership, which has made its mark on Globe history. He has thoughtfully provided us with ample time to conduct a broad and inclusive search for his successor, as he will stay on as editor through the end of the year or until our next newsroom leader is in place. Brian has nurtured a strong newsroom leadership team and we are well-positioned for the transition. Our search for the next editor has begun, and we will look across the entire industry to find our next leader to maintain and enhance our high standards of journalism and commitment to our community while continuing our growth and innovation as a modern media company. Your thoughts are welcome.

Our role in the community is as important as ever, and we are continuing to grow and invest in our long term future. I hope you’ll join me in thanking Brian for his immeasurable contributions and to wish him luck in his next chapter, which we are thrilled will include his voice in our pages.

Thank you,

Linda Henry

Yes, it’s true: Brian McGrory is leaving the Globe and heading to Boston University

Boston Globe editor Brian McGrory has finally made official what half the city has known for months: he’s leaving the Globe at the end of 2022 after nearly 10 years in charge in order to chair the journalism department at Boston University. He sent a memo to the staff a little while ago.

McGrory, who’d been a popular metro columnist before ascending to the top of the masthead, was named editor in the waning days of New York Times Co. ownership after Marty Baron left for The Washington Post. But McGrory helped pave the way for John Henry to buy the Globe in 2013, a process I described in my 2018 book, “The Return of the Moguls.” On McGrory’s watch, the Globe has thrived journalistically and has emerged as among a handful of large regional newspapers that have achieved financial sustainability.

Obviously there’s much more to be said, and much more will be said. I’ll just point out that he’s now a rival. The director of our School of Journalism at Northeastern is Jonathan Kaufman, a former Globe journalist. Moreover, McGrory and Kaufman both led news organizations that won Pulitzer Prizes — Bloomberg News in Kaufman’s case.

Here’s the Globe’s story on McGrory’s departure.

Congratulations to Brian. BU’s gain will be the Globe’s loss. The complete text of McGrory’s message, obtained from a trusted source, appear below.

Hey all,

I’ve written a lot of overly long memos to the room. I can’t promise this one will be any shorter, but I’ll do my best to be direct. I’m planning to step away from my role as editor by the end of this year.

When I took this job nearly a decade ago, I expected epic challenges and hoped for meaningful rewards. In retrospect, I had no idea on either front. Begin with the stories, so many once-in-a-generation stories, from the Boston Marathon bombings, to the Trump election, to a pandemic that changed everything, to the vital racial and social justice movement, to Trump’s failed reelection and its ugly aftermath, to this angst-ridden, not-quite-post-Covid netherworld that we’re in now. There were thousands of other stories in between, big consequential projects, deeply human narratives, breaking news, vital accountability work. You did it all with tenacity, urgency, and grace, and I’m honored to have been a part of that.

At the same time, the moment required us to confront the profoundly broken business model in American journalism, which calls to mind what a journalism elder said to me a number of years ago: You get to pick your career, but not when you do it. The industry was, as you know, a wreck. Big, proud newspapers were getting hollowed out. Answers were elusive. There were serious questions about our very viability. Facing all of that, what you’ve accomplished is nothing short of miraculous. You’ve embraced digital. You’ve shifted our mindset from being the paper of record to the paper of interest. You’ve found that sweet spot between what readers want and what our community needs. In doing so, you’ve built one of the most successful news sites in the world, http://bostonglobe.com, the foundation upon which this organization will grow for years. I hope you know how rare and important this is. And I’m honored to be part of that, too.

These kinds of notes inevitably turn formulaic and sappy, rarely a good combination, and I’m afraid I’m about to succumb to that form. There is so much that is great about this job, but there is a singularly meaningful reward that I wasn’t fully anticipating: my relationships with so many of you. From this seat, I had the privilege of thousands upon thousands of conversations. I saw your daily determination. I saw your commitment to the craft. I saw how you navigated the relentless demands of work in the most difficult times. I saw the toll it took, the resilience you had, the pride you felt. I saw how you care about your colleagues and the readers we serve.

I saw on a moment-by-moment basis how much the Globe means to you. What I also saw is how much you mean to the Globe. Don’t take this the wrong way, but you’re not always easy. You are, though, always worth it. This is the best newsroom in the country, and there’s no proper way to thank you for that.

Naming names is never a good thing, but I need to specifically thank Jen Peter and Jason Tuohey, the two best managing editors in America. You could throw at Jen a global pandemic that decimates every touchstone of everyday life, which we did, and she would hesitate only imperceptibly before continuing to bring order to the daily chaos that is journalism. She’s done it brilliantly. And put Jason among the most important digital thinkers in this industry today, the driving force behind so much of our growth.

Thanks, emphatically, to the Henrys, John and Linda. It’s just about incomprehensible that people with their options and resources would have the desire and commitment to plunge into the gritty and often thankless world of newspapers at a time when so many big thinkers were saying that the industry couldn’t be saved. They did, for all the right reasons, and the results have been profound – a thriving, innovative Globe with more subscribers than we’ve had in nearly 15 years and a role in this community that is as central as it’s ever been. Linda, especially, is at it every day – believe me, I know – often dismantling industry convention in pursuit of the next creative idea. She’s also built what is certainly the strongest leadership team the Globe has ever had, leaving no doubt that the next editor will be someone to celebrate.

In terms of what’s next for me, I’ve got two roles ahead. First, I’m heading to Boston University, where I’ve been offered the chair of the journalism department, an extraordinary opportunity to have an impact on the profession at a gold-standard institution. Hopefully that finally puts an end to the rumors. Second, I’ll write a regular column for the Globe, likely from the opinion section, ideally not too different from what I used to do in prior chapters of my professional life. I’m beyond excited about regaining a voice, and elated to remain a part of this place.

Our plan is for me to remain in this role until the end of the year or until a new editor starts, whichever comes first. Linda will be in touch very soon about the search.

Being the editor of the Globe would be the greatest honor of anyone’s professional life, and it certainly has been mine. For me, though, there’s something more. I was born here, raised here, watched my father read the Globe page-by-page every night, delivered the paper as a kid on a fifty-house route in Weymouth. All I ever wanted to be was a writer for the Globe. Being the editor was a dream I never dared to have.

Thank you for it all.

Correction. I really can subtract. Honestly, I know that 2022 minus 2012 is 10. Now fixed.

 

The Globe’s Rhode Island initiative may be expanded across New England

The Boston Globe’s Rhode Island section could be a model for other verticals devoted to different regions in New England. That’s the main takeaway from this week’s edition of “E&P Reports,” a vodcast produced by the trade publication Editor & Publisher.

The vodcast, hosted by E&P publisher Mike Blinder, featured the Globe’s Rhode Island editor (and my “Beat the Press” crony), Lylah Alphonse; Rhode Island reporter Dan McGowan; and Michelle Micone, the Globe’s vice president for innovation and strategic initiatives.

It was Micone who talked about expanding the Globe’s coverage to other regions. She specifically mentioned New Hampshire, Maine and Vermont but not Connecticut, which was either inadvertent or, more likely, a nod to the Nutmeg State’s very different media and cultural environment. I mean, my God, they root for the Yankees down there.

Alphonse and McGowan were careful not to criticize The Providence Journal, but let’s face it — the Globe’s Rhode Island project was begun in response to Gannett’s evisceration of that once great paper. Blinder said that the Journal’s full-time staff is down to about 14. [Note: The actual number is about 30.] Alphonse told me that Globe Rhode Island now has eight full-time journalists. Of course, the folks who remain at the Journal are doing good work under trying conditions, and Alphonse and McGowan were smart to acknowledge that.

One statistic that really hit me was that McGowan’s daily newsletter, “Rhode Map,” is sent to 80,000 recipients each morning, with an open rate of about 30%. By contrast, the Journal’s combined paid print and digital circulation on weekdays, according to data the paper filed with the Alliance for Audited Media, is a little under 31,000. (About 24,000 of that is print, showing that Gannett’s push on digital subscriptions has a long way to go.)

I also want to highlight the news that staff reporter Alexa Gagosz, one of our great master’s degree alums at Northeastern, is heading up expanded food and dining coverage in Rhode Island, including a weekly newsletter.

Now, to get back to possible expansion in other regions: Rhode Island was an opportunity that may not be entirely replicable elsewhere, thanks not only to the ProJo’s shrinkage but to the state’s unique identity. The state has a range of media options, including good-quality public radio, television newscasts and independent community news outlets. But the ProJo’s decline gave the Globe a chance to slide in and quickly establish itself as one of the players.

Where else does opportunity that exist? Worcester and Central Massachusetts strike me as in serious need of more journalism. The Globe memorably walked away from the region when then-new owner John Henry sold the Telegram & Gazette to a Florida-based chain after leading the staff to believe he was committed to selling to local interests. Soon enough, the T&G became part of Gannett, and it was subjected to the same devastating cuts that the chain has imposed throughout the country. The T&G carried on but is currently in flux, having lost its respected executive editor, Dave Nordman, to Northeastern, where he’s heading up the internal news operation. Could the Henrys return to Worcester? I’ve heard that might be within the range of possibilities.

But where else? New Hampshire and Maine both have good-quality independent newspapers, though New Hampshire’s two leading papers — the Union Leader and the Concord Monitor — have shrunk quite a bit. Vermont is unique, dominated by one of the most respected nonprofit news organizations in the country, VTDigger.

Then there’s the distribution model, which, if they were asking me (they’re not), is too reliant on print. Quite a bit of the Globe’s Rhode Island coverage appears in the Globe’s print edition. But rather than take on the cost of trucking more papers to Rhode Island, why not use digital to expand your reach and drive more digital subscriptions? What the Globe is doing with Rhode Island and print simply wouldn’t work if the paper established bureaus in Central Massachusetts, New Hampshire, Maine and Vermont.

The Globe is one of the few major metropolitan dailies in the country that is growing. What it’s doing in Rhode Island is impressive, and I’d love to see it happen elsewhere.

Correction: After this item was published, I learned that the Journal’s full-time newsroom staff is actually around 30 people, supplemented by freelancers.

BoMag and the Globe offer dueling theories about who shot David Ortiz

David Ortiz celebrates the first of his three championships with the Red Sox. Photo (cc) 2013 by Colin Steele.

Boston magazine and The Boston Globe published dueling stories over the weekend that recount the 2019 shooting of Red Sox legend David Ortiz.

The Boston magazine story, by Mike Damiano, appears to have been many weeks, if not months, in the making — it’s a rich, deeply reported story about Ortiz’s life in the Dominican Republic and his complicated family situation. The Globe article, by Bob Hohler, may have been assigned (or least put on the fast track) in reaction to  BoMag. It’s a newsy account of that attempts to get to the bottom of who ordered Ortiz’s shooting, and why.

By all means, read both. But by far the most interesting detail is the dueling theories about the role of a major drug trafficker, César Peralta, known as “The Abuser.” According to the Globe’s account, former Boston police commissioner Ed Davis, who was hired by Ortiz to investigate the shooting, Peralta is in fact the guy who ordered the hit. Hohler writes:

Davis, disclosing his findings for the first time, said the powerful and politically connected drug lord César “The Abuser” Peralta came to feel disrespected by Ortiz, prompting him to place a bounty on Ortiz’s head and sanction the ragtag hit squad that tried to kill him.

“Peralta said he had David shot,” Davis said in an interview, citing information that he said US law enforcement officials gathered and shared with him.

The BoMag story, on the other hand, all but rules out Peralta as having any role. Here’s what Damiano has to say:

As I, too, tried to get to the bottom of what caused the shooting, I found that the closer I got to people with genuine knowledge of the Santo Domingo underworld, the more skepticism I heard about the love-triangle theory and any possibility of Peralta’s involvement. One man I spoke with who knows many of the men in Peralta’s circle, as well as some of the men accused of involvement in the shooting, said that the theory was bunk. No part of it added up, he said, and hardly anyone in his neighborhood — Herrera, a hot bed of Dominican drug trafficking — believed it.

The two accounts also raise some questions about access. The Globe’s owner and publisher, John Henry, is also the principal owner of the Red Sox. Davis is a security consultant for the Globe. It does not appear that Davis shared his theory about Peralta with BoMag.

Both stories dismiss the widely mocked theory put forth by Dominican authorities that Ortiz was the victim of mistaken identity.

The conclusion I took away from Damiano’s and Hohler’s reporting was that we may never know who ordered the hit on Ortiz. I’m just glad he’s still with us.

Footnote: I’m told that Damiano has been hired by the Globe.

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The Boston Globe marks 150 years as a growing and profitable news organization

There’s a bit of news in Boston Globe editor Brian McGrory’s message marking the paper’s 150th anniversary today: he writes that the Globe now has “about 250 staffers in its newsroom and on the editorial pages.”

That’s up significantly from a few years ago. In 2018, the Globe had a full-time staff of about 220 journalists, which means that the size of the newsroom has increased by nearly 14% over the past four years. Regular readers know that the paper has been boosting its coverage of climate change and technology, among other topics.

McGrory and owners John and Linda Henry deserve to take a bow for the Globe’s renaissance in recent years. After buying the paper from the New York Times Co. in 2013, the Henrys compiled an uneven record in rebuilding the Globe as a sustainable business. When I checked in with John Henry in mid-2018, the paper was still losing money and had fallen short of its goal of selling 100,000 digital subscriptions. Henry was forced to declare that he had no plans to sell.

Six months later, Henry said the Globe had finally become profitable. Today the paper has some 235,000 paid digital subscribers, making it a leader among large regional newspapers, and has far more reporting capacity than most of its peer news organizations, many of which are owned by cost-obsessed hedge funds.

I’ve been a Globe reader for nearly 50 years. It’s a very different institution compared to the pre-internet glory days, when it covered national and international news with its own reporters and had a staff — at its 2000 peak — of about 550 full-timers.

Yet it remains one of the best, most deeply staffed papers in the country. It’s also evidence that committed, deep-pockets local ownership can be the difference between a thriving journalistic enterprise and a decimated newspaper hanging on for survival.

How The Boston Globe could help offset the local news vacuum

Could The Boston Globe, profitable and growing, help make up for the local news vacuum in Eastern Massachusetts? The shortage of reliable community journalism became much more acute last week when Gannett told reporters at most of its weekly papers that they would be reassigned to regional beats or to one of the chain’s dailies.

The Globe could conceivably step in by reviving an idea that was perhaps before its time. Under New York Times Co. ownership, the Globe published web pages known as YourTown, one for each suburban community as well as a few of Boston’s neighborhoods. They relied heavily on aggregation — too heavily, as the Times Co. found out in court — and they competed with papers owned by GateHouse Media (now Gannett) that weren’t nearly as hollowed-out as they are today. What’s more, YourTown was part of the Globe’s free Boston.com site (this was before BostonGlobe.com), and the hyperlocal advertising that was supposed to support YourTown never materialized. John Henry shut down YourTown not long after he bought the Globe in 2013.

So what would a revived YourTown look like? Advertising isn’t nearly as important as it used to be, but the Globe has been successful in selling paid digital subscriptions. So imagine a YourTown with one full-time reporter in each community. If the Globe signed up 500 new subscribers in a community, that could bring in as much as $120,000 a year. I’m basing that on an average subscription costing $20 a month (the full cost is $30, but many people would be paying discounts).

No doubt this would work better in some places than in others. I live in Medford, a city of about 58,000 residents that, as of now, doesn’t have a single full-time reporter covering the community. Selling an extra 500 subscriptions — or more — ought to be doable.

But right next door, in Arlington (population: 43,000), there’s a good-quality nonprofit news website, Your Arlington, which would make a Globe-branded YourTown less attractive. Or consider a small town like Bedford — not only are there just 13,000 residents, but it’s the home of a well-established nonprofit news site, The Bedford Citizen.

Still, I think a revived YourTown would work well enough in a few communities that it’s worth trying. I doubt it would be a money-maker for the Globe, but it might be a break-even proposition. And the paper would be filling a real need.

Bina Venkataraman to step down as the Globe’s editorial page editor

Bina Venkataraman. Photo (cc) 2019 by TED Conference.

Less that two weeks after sending out a memo to her staff looking ahead to the new year, Boston Globe editorial page editor Bina Venkataraman has announced that she’s leaving. She posted a thread on Twitter within the past hour that begins:

Her departure isn’t entirely unexpected, as she took a leave of absence during the fall in the midst of the Boston mayoral campaign. Nevertheless, it’s stunning that her tenure lasted such a short time. It’s also at least a temporary setback for the Globe’s efforts to diversify; having a woman of color as one of the top two journalists (along with editor Brian McGrory) reporting to Linda and John Henry sent a powerful signal.

Venkataraman isn’t leaving completely. She’ll remain as an editor-at-large, which she says will involve writing for the Globe and advising The Emancipator, a racial justice digital publication that the paper is launching in collaboration with Boston University.

Unlike the news side, where McGrory has been a fixture since 2012 (he actually helped recruit Henry to buy the Globe from the New York Times Co.), the opinion side has been in flux for a long time. Ellen Clegg replaced Peter Canellos as editorial page editor in 2014, less than a year after Henry completed his purchase. Clegg served until her retirement in 2018, followed by business columnist Shirley Leung on an interim basis. Venkataraman arrived in 2019. (Clegg and I are now research and podcast partners.)

Venkataraman was an unconventional hire — a science journalist and author who didn’t come from the politics and policy side where most opinion editors cut their teeth. It will be interesting to see what direction the Globe heads in next.

Alden’s latest move may be the final act in Warren Buffett’s newspaper misadventure

Warren Buffett. Photo (cc) 2011 by Fortune Live Media.

The final act is about to be consummated in Warren Buffett’s disappointing dalliance with the newspaper business. Despite the legendary investor’s self-professed love for newspapers, he ran the newspapers he acquired starting in 2012 as a hopeless cause rather than investing in them as his fellow billionaires Jeff Bezos did with The Washington Post and John Henry did with The Boston Globe.

Buffett eventually sold his papers — including his hometown Omaha World-Herald — to Lee Enterprises. And on Monday we learned that the predatory hedge fund Alden Global Capital is now attempting to purchase Lee’s 90 daily newspapers, which are located in 26 states. The death watch has begun.

I wrote about Buffett’s track record as a newspaper owner in my book “The Return of the Moguls.” Here’s an excerpt.

***

When Buffett’s Berkshire Hathaway investment company purchased 63 newspapers from the Media General chain in 2012 for $142 million, the news was greeted with the hope that the legendary octogenarian might be just the person to show the way forward. Buffett bolstered his new holdings by extending loans to those papers totaling $445 million. It was a generous gesture with which Aaron Kushner and his investors, who also wanted the papers, could not compete. A year earlier Buffett had bought his hometown paper, the Omaha World-Herald, along with six other papers for $200 million. He already owned The Buffalo News. And in those pre-Bezos days, he held a substantial number of shares in The Washington Post Co. “Does Warren E. Buffett want to be a media mogul?” asked The New York Times.

Certainly Buffett had the right pedigree. Not only was he a brilliant financial thinker, but he had long loved newspapers and had been a close adviser to the Graham family at The Washington Post for many years. He even had a hand in winning a Pulitzer Prize: in 1973, when he was the owner of the Omaha Sun, he helped his reporters investigate a local charity by finding documents, providing financial analysis, and even assisting with the writing. Katharine Graham praised Buffett fulsomely in her autobiography, saying that he became a trusted confidant after he invested in the Washington Post Co. “By the spring of 1974,” she wrote, “Warren was sending me a constant flow of helpful memos with advice, and occasionally alerting me to problems of which I was unaware.”

Yet Buffett, astute financier that he is, expressed skepticism about prospects for the newspaper business after it entered its long decline. In 2009, for instance, he said he had no interest in purchasing papers, because their financial outlook was so grim. “For most newspapers in the United States, we would not buy them at any price,” he said. “They have the possibility of going to just unending losses.” And though he later reversed himself, his acquisition strategy gravitated toward papers of the type that still do reasonably well: those in medium-sized markets where the local paper is the principal source of regional and community news and where competition from the internet is less a factor than it is in large cities. Buffett’s papers carry little debt and are profitable. In the spring of 2016, though, he admitted that the picture was continuing to darken for the newspaper business and that he was no closer to finding a way out than anyone else.

“We haven’t cracked the code yet,” he told USA Today. “Circulation continues to decline at a significant pace, advertising at an even faster pace. The easy cutting has taken place. There’s no indication that anyone besides the national papers has found a way.” He added that even though all of his papers were making money (at that time he was up to 32 dailies and 47 weeklies), that might not be the case in future years. “If you have a problem in five years, you have a problem now,” he said. Buffett doubled down on those remarks in early 2017, telling CNBC that The New York Times, The Wall Street Journal, and possibly The Washington Post were the only newspapers he believed had an “assured future,” explaining, “They have developed an online presence that people will pay for.”

Less than two months later, the hammer came down at BH Media, the company Buffett had set up to manage his newspapers. BH Media announced the termination of 289 positions throughout the chain, including the elimination of 108 vacant jobs. The BH Media president and chief executive officer, Terry Kroeger, told the Omaha World-Herald that Buffett had been informed of the reductions but that “his opinion was not sought or offered,” in keeping with Buffett’s hands-off investment philosophy. Kroeger blamed the papers’ declining revenue on changes in retail advertising, and especially on the move to online shopping — an irony given how the most successful of the new breed of newspaper owners, Jeff Bezos, made his money. Buffett’s World-Herald did not suffer any cuts at that time. But then, in May, BH Media reduced the size of the Omaha paper and eliminated three jobs, according to a memo to the staff from the executive editor, Melissa Matczak.

For a self-confessed newspaper fan whose net worth was roughly the same as that of Bezos (more than $60 billion apiece in mid-2016), Buffett’s role in helping to figure out the future of journalism might be considered disappointingly modest. Perhaps it would be too much to expect someone in his mid-80s to dedicate himself to figuring out the future of the newspapers he had acquired. But he was ideally positioned to bring in the sorts of minds who might apply themselves to the task of saving smaller papers in much the same way that Bezos and Henry were attempting to reinvent their much larger properties. Surely Buffett understands as much as anyone that readers and advertisers will put up with an ever-diminishing paper for only so long before an irreversible downward spiral sets in.

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