More fallout from the LA Times; plus, the Sun shines in Colorado, and news deserts spread

Los Angeles Times owner Patrick Soon-Shiong. Photo (cc) 2014 by NHS Confederation.

News that the Los Angeles Times would not endorse a candidate for president has quickly ballooned into yet another crisis for Patrick Soon-Shiong, the paper’s feckless and irresponsible owner.

Mariel Garza, the Times’ editorials editor, quit on Wednesday, reports Sewell Chan in the Columbia Journalism Review. “I am resigning because I want to make it clear that I am not OK with us being silent,” Garza told Chan. “In dangerous times, honest people need to stand up. This is how I’m standing up.”

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Chan, by the way, is a former editorial-page editor at the Times. He was recently named editor of the CJR after previously working as editor-in-chief of The Texas Tribune.

Soon-Shiong, a billionaire surgeon, responded to the criticism with a post on Twitter suggesting that he wanted to publish a side-by-side analysis of Kamala Harris’ and Donald Trump’s strengths and weaknesses, but that the editorial board refused to comply:

In this way, with this clear and non-partisan information side-by-side, our readers could decide who would be worthy of being President for the next four years. Instead of adopting this path as suggested, the Editorial Board chose to remain silent and I accepted their decision. Please #vote.

Needless to say, the purpose of a newspaper’s opinion pages is to express opinions, not to offer “non-partisan information.”

Now, let’s back up a bit and look at the role of owners at large metropolitan newspapers like the LA Times. Ethically, owners should stay clear of news coverage, but Soon-Shiong reportedly violated that edict by interfering with a story about a friend whose dog had bitten someone, of all things. Natalie Korach reported in The Wrap earlier this year that the incident played a role (along with deep cuts in the newsroom) in executive editor Kevin Merida’s decision to quit in January of this year.

On the other hand, owners are free to exert their influence on the editorial pages. Indeed, at one time the lure of exercising political influence was one of the main reasons that rich people bought newspapers. So Soon-Shiong did not act unethically in killing an editorial endorsing Harris for president. Even so, his actions were high-handed and disrespectful, and by acting as he did at the last minute — instead of, say, announcing a no-endorsement policy earlier this year — he precipitated a crisis. In fact, as Max Tani noted in Semafor on Tuesday, the Times had endorsed in state and local races just last week.

Another consideration is the effect that endorsements actually have on political campaigns. A good rule of thumb is that the smaller and more obscure the race, the more that a newspaper’s opinion might actually influence the outcome. A presidential endorsement is the opposite of that, which Garza acknowledged in her resignation letter:

I told myself that presidential endorsements don’t really matter; that California was not ever going to vote for Trump; that no one would even notice; that we had written so many “Trump is unfit” editorials that it was as if we had endorsed her.

But the reality hit me like cold water Tuesday when the news rippled out about the decision not to endorse without so much as a comment from the LAT management, and Donald Trump turned it into an anti-Harris rip.

Of course it matters that the largest newspaper in the state — and one of the largest in the nation still — declined to endorse in a race this important. And it matters that we won’t even be straight with people about it.

Garza gets at something that is at least as important as influencing voters. An endorsement is how a news organization expresses its values. And what Soon-Shiong has expressed is that his newspaper is going to remain neutral at a time when a fascist (according to two generals who served under Trump, John Kelly and Mark Milley, language that Harris herself has now adopted) is seeking to return to office.

Newspapers like The New York Times and The Boston Globe have endorsed Harris. Yet, in a potentially ominous sign, The Washington Post so far has not.

Unlike the public manner in which the LA Times’ non-endorsement has played out, there’s no indication of what’s going on at the Post. Independent media reporter Oliver Darcy writes that the Post’s silence is starting to raise eyebrows, as well as new questions about its ethically challenged publisher, Will Lewis. Darcy writes that the Post’s owner, Jeff Bezos, “has repeatedly been targeted by Donald Trump over the years” and “is not alone amongst the rich and powerful who may prefer to stay as far away from politics as possible this election cycle.”

Let’s hope the Post is heard from soon.

The Sun is shining

A little over a year ago, The Colorado Sun announced it was switching from a hybrid for-profit/nonprofit ownership model to nonprofit governance. At the time, co-founder and editor Larry Ryckman (now the publisher) said that whatever misgivings he might have about the nonprofit model, it gave the Sun an easier story to tell to prospective funders.

“Whether I agree with it or not, whether I even like it or not, the reality is that many individuals, many institutions and philanthropic groups, have concluded that journalism should be nonprofit,” Ryckman told me in an interview for Nieman Lab. “I have my own thoughts on that, but that is reality.”

Well, now the switch has paid off. Ryckman announced earlier this week:

The Colorado Sun has been awarded a $1.4 million grant from the American Journalism Project. AJP is a national nonprofit whose purpose is to boost nonprofit journalism around the country, and it has thus far committed $62.7 million to 49 news organizations across 35 states.

The grant will be spread over three years, and the funds will be used to strengthen the long-term sustainability and future expansion of The Sun. This will include growing our fund development efforts and bolstering our business operations to allow us to deepen our impact in Colorado, while laying the foundation for the next era of high-quality, nonprofit journalism in our state — ensuring that Coloradans have the news they deserve for generations to come.

Before becoming a nonprofit, the Sun was a public benefit corporation, a for-profit that operates under certain restrictions and requirements. It also had a relationship with a nonprofit organization, which allowed donors to support the Sun’s journalism with tax-deductible contributions.

The Sun, by the way, is one of the projects that Ellen Clegg and I feature in our book, “What Works in Community News.” Ryckman has been a guest on our podcast as well.

The crisis continues

The Colorado Sun’s good news notwithstanding, the local news crisis continues unabated and may be getting worse. That was the message at a webinar Wednesday to mark the release of the third annual State of Local News report from the Medill School at Northwestern University.

“The crisis in local news is snowballing,” said Tim Franklin, the John M. Mutz Chair in Local News at Medill. Franklin said that more than 3,000 newspapers have closed since 2005, about a third of the total, with a concomitant decline in newspaper jobs, which he called “a staggering loss.”

Zach Metzger, who runs the project now that founder Penelope Abernathy has retired, added: “News deserts are continuing to expand.”

I plan to look more closely at the data and write a follow-up at some point in the near future. Meanwhile, Sophie Culpepper of Nieman Lab has a thorough overview of the new report.

If the LA Times’ owner had stepped up, the LA Local News Initiative might not be needed

Los Angeles with Mount Baldy in the background. Photo (cc) 2019 by Alek Leckszas.

The American Journalism Project announced this week that it’s raising $15 million to cover underserved communities in Los Angeles. The news was broken Tuesday by Axios media reporter Sara Fischer.

What’s been left unsaid (although Rick Edmonds of Poynter observes that it’s being hinted at) is that this is being driven by the abject failure of the Los Angeles Times’ celebrity billionaire owner, Patrick Soon-Shiong, to step up and provide the region with the journalism that it needs. Indeed, among the board members of the new Los Angeles Local News Initiative is Kevin Merida, who quit as executive editor of the Times amid budget cuts and reports that Soon-Shiong was interfering with Merida’s editorial judgment.

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For a metropolitan area the size of LA, $15 million is a drop in the bucket, though presumably it’s meant as a down payment on what will be a larger effort. The money will be spread among a variety of existing projects and could fund new outlets as well. Monica Lozano, who chairs the initiative’s board, told Fischer: “We believe no one news entity can fill all of the information needs of communities as large, complex and diverse as Los Angeles. We needed to think about a model that would match that complexity and that diversity.”

Here’s how the American Journalism Project describes the initiative in its announcement:

The L.A. Local News Initiative will launch a nonprofit organization that will operate and support local newsrooms in Los Angeles to provide coverage at neighborhood, regional, and state levels in service of L.A. communities. The initiative aims to increase the volume of coverage that enables residents to take effective action and navigate life on a local level, and that represents all L.A. communities in public discourse. It will also increase accountability journalism that keeps in check the billions of dollars in government and private spending affecting the Angelenos.

What’s sad is that the AJP should have been able to direct its attention elsewhere if Soon-Shiong hadn’t proven himself to be a feckless and irresponsible owner. An unimaginably wealthy surgeon, he and his family purchased the LA Times in 2018 for $500 million. He appeared to be exactly what the Times needed after years of chaotic ownership.

Like John and Linda Henry at The Boston Globe, Glen Taylor at The Minnesota Star Tribune and Jeff Bezos at The Washington Post (who, as we know, has run into difficulties in recent years), Soon-Shiong was seen as someone who would invest a small share of his billions into rebuilding the Times so that it could re-emerge as a profitable and growing enterprise.

Instead, Soon-Shiong showed little of the patience and judgment needed to pull it off. Worse, he used his position on the board of Tribune Publishing to allow that chain’s nine large-market daily newspapers to fall into the hands of the notorious hedge fund Alden Global Capital, and later sold The San Diego-Tribune (which he’d acquired as part of the LA Times deal) directly to Alden.

Meanwhile, the Times has endured cut after cut under Soon-Shiong’s stewardship, including about 115 employees, or more than 20% of the newsroom, earlier this year.

As Rick Edmonds writes of the new initiative:

While the announcement does not criticize the Los Angeles Times directly, it has numerous veiled references to what the initiative’s founders find wrong with the legacy newspaper. Its first sentence says the initiative has been undertaken in response to “drastic losses in local journalism resources.”

The shame of it is that there are only so many philanthropic dollars out there, and the money and energy being invested in Los Angeles could have been directed elsewhere — if only Soon-Shiong thought of himself as a genuine steward of journalism in Southern California.

LA Times owner Patrick Soon-Shiong is a man without a plan

I said what I had to say about Los Angeles Times owner Patrick Soon-Shiong two weeks ago, when he pushed out executive editor Kevin Merida. I don’t really have anything to add now that the Times has laid off 115 employees. Except this: You’d have to be naive to think that Soon-Shiong should simply use his billions to subsidize what he says are annual losses in the $30 million to $40 million range. The problem is that he doesn’t have a plan.

“We are not in turmoil. We have a real plan,” Soon-Shiong reportedly said Tuesday. The record says that he’s wrong on both counts.

The hope was that Soon-Shiong would take losses for a few years while figuring out a strategy that would return the Times to profitability and growth. Instead, he’s just flailing around.

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Kevin Merida’s departure from the LA Times raises doubts about its billionaire owner

Kevin Merida. Photo (cc) 2021 by Michifornia.

There’s some very bad news coming out of Los Angeles this week. Kevin Merida, the executive editor of the Los Angeles Times, is stepping down after just two and a half years on the job. Merida, who previously held high-level jobs at The Washington Post and ESPN, is perhaps the country’s most prominent Black editor, and his departure raises serious questions about the LA Times’ owner, billionaire Patrick Soon-Shiong, who bought the paper in 2018.

Soon-Shiong has certainly been a better steward than a corporate chain or hedge fund would have been, but his time at the helm has been unsteady. He wants to grow toward profitability, but he keeps cutting the staff. Twice he has gone out of his way to deliver newspapers into the arms of the undertakers at Alden Global Capital, doing nothing to stop Alden’s acquisition of Tribune Publishing’s nine major-market dailies in 2021 and then selling The San Diego Union-Tribune to Alden in 2023.

Poynter media columnist Tom Jones notes that Soon-Shiong is now trying to reassure the LA Times newsroom that Merida’s departure will not lead to a similar fate:

Perhaps sensing the uneasiness of his newsroom, Soon-Shiong wrote in a note, “Our commitment to the L.A. Times and its mission has not wavered since the inception of our acquisition. However, given the persistent challenges we face, it is now imperative that we all work together to build a sustainable business that allows for growth and innovation of the L.A. Times and L.A. Times Studios in order to achieve our vision.”

Benjamin Mullin, writing in The New York Times, reports that Merida clashed with members of Soon-Shiong’s family over Merida’s edict that staff members who signed a petition condemning Israel’s war in Gaza would be temporarily banned from covering stories related to the war. Whether or not you think Merida was clinging to outmoded ethical standards, you can’t say that move was controversial. Indeed, two New York Times contributors resigned, apparently under pressure, after signing a similar letter.

At one time it looked like wealthy individual owners might be a solution to the news crisis — not that they could be expected to underwrite losses forever, but they could certainly provide the runway needed to build a new, sustainable business model. Now, with Jeff Bezos’ Washington Post floundering, it looks like the only wealthy newspaper owners who’ve fulfilled their promise are John and Linda Henry at The Boston Globe and Glen Taylor at the Star Tribune of Minneapolis.

Sadly, it’s hard to be optimistic about the future of the LA Times under Soon-Shiong.

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Politico’s look at the LA Times has some interesting tidbits, but it’s hardly a takedown

Patrick Soon-Shiong. Photo (cc) 2019 by the World Economic Forum.

Patrick Soon-Shiong came along too late to make the cut. In mid-2018, the celebrity surgeon bought the Los Angeles Times and several other papers for $500 million. My book about a new generation of wealthy newspaper owners, “The Return of the Moguls,” had just been published.

Too bad. Soon-Shiong is at least as interesting as the owners I wrote about: Jeff Bezos, who bought The Washington Post and re-established the legendary paper as a powerhouse; John Henry, who slowly transformed The Boston Globe into a growing and profitable enterprise; and Aaron Kushner, who poured money into the Orange County Register only to fail at attracting enough advertisers and readers to pay for his profligate spending.

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Now Politico has weighed in with a lengthy story about the Times under Soon-Shiong that portrays his ownership as something of a mixed bag. He’s invested in the paper, reversing years of cost-cutting by its previous owner, Tribune Publishing (which for a time was known as tronc), and he’s put a highly regarded editor, Kevin Merida, in charge of the newsroom. But his interest in the paper seems to wax and wane, and his daughter, Nika Soon-Shiong, is portrayed as interfering in the newsroom.

I have to say that I’m puzzled by some of the wailing. The Politico article, by Daniel Lippman, Christopher Cadelago and Max Tani, claims that Nika Soon-Shiong has inserted herself into the process of endorsing political candidates as though that were somehow a bad thing. Now, the Times may be making some dumb endorsements, such as its decision to back Nika Soon-Shiong ally Kenneth Mejia for city controller. Mejia, according to the Times’ own reporting, regards both Joe Biden and Donald Trump as “sexual predators.”

But a newspaper’s owners are free to insert themselves into the opinion pages as much as they’d like. A good owner will keep a distance from news operations, but the opinion section is their playground. John and Linda Henry are involved in the Globe’s editorial pages and no one thinks anything of it. Jeff Bezos’ lack of interest in the Post’s opinion operation is unusual.

Nika Soon-Shiong has also expressed her leftist views in a tweet (which she deleted) critical of her own paper’s crime coverage and in suggestions for story coverage. There is, for instance, this, which I find entirely benign, even salutory:

In 2020, Nika Soon-Shiong started participating in staff meetings about the paper’s failures in covering race and how it could become more inclusive in hiring. She suggested the paper avoid using the word “looting” when covering the unrest over police brutality, which inspired the paper to tweak style guidelines.

Times company leaders at the time asked then-top opinion editor Sewell Chan to brainstorm ways that Nika Soon-Shiong could get more involved in the paper. He talked with her about whether working with the opinion section would be a possibility. (Chan declined to comment.)

Politico quotes Merida as saying that Nika Soon-Shiong has “a right to critique our journalism, offer story ideas and other suggestions she believes will help make us better,” and that the “same right is extended to those we cover and to those who read us.” The fact-checker rates that statement as 100% true.

Patrick Soon-Shiong is a bit of an oddball. A profile in The New Yorker last year by Stephen Witt raised questions about his success as a pharmaceutical entrepreneur. But he has been a far better owner of the LA Times and The San Diego Union-Tribune, a throw-in that was part of the Times deal, than Tribune Publishing had been. Indeed, Soon-Shiong’s one unforgivable act as a newspaper owner was a non-act — his decision to do nothing to stop the sale of Tribune to the hedge fund Alden Global Capital, which of course began gutting its papers as soon as the deal was consummated.

Tribune owns some of our most storied newspapers, including the Chicago Tribune, The Baltimore Sun and the Hartford Courant — the oldest continuously published newspaper in the country. Soon-Shiong, a billionaire, could have stopped the transaction and helped Baltimore hotel magnate Stewart Bainum with his bid to buy the chain. Instead, Alden wound up with Tribune, and Bainum has launched a digital nonprofit called The Baltimore Banner. In an interview with Brian Stelter, then of CNN, Soon-Shiong protested that he was a “passive investor,” adding: “I’ve got my hands full and frankly, really committed to the LA Times and San Diego Union-Tribune.”

The Los Angeles Times is far better off under Soon-Shiong family ownership than it had been under years of Tribune mismanagement — mismanagement that would have turned into a rout under Alden. The Politico piece contains some interesting tidbits, but it’s hardly a takedown.

The New Yorker examines the controversial career of the L.A. Times’ celebrity owner

Patrick Soon-Shiong. Photo (cc) 2018 by Steve Devol.

The New Yorker has published a long profile of Patrick Soon-Shiong, the celebrity surgeon who moonlights as the problematic owner of the Los Angeles Times. Most of Stephen DeWitt’s article focuses on how Soon-Shiong became a billionaire — which appears to be based on a combination of brilliance and shady business practices. DeWitt writes:

Few figures in modern medicine have inspired as much controversy as Soon-Shiong. “He gets very enthusiastic, and sometimes he might exaggerate,” Hentz said. “He can embellish a little.” [Kate Hentz is the daughter of Lee Iacocca, whose first wife died of Type 1 diabetes and who was an important backer of Soon-Shiong’s work.] Outcomes for his diabetes treatment were disappointing, and one case ended tragically. While pursuing this therapy, he also began researching chemotherapy. At the center of his fortune is a cancer treatment that costs more than a hundred times as much as another drug, available as a generic, that is prescribed for some of the same conditions. Soon-Shiong has been repeatedly accused of financial misrepresentation, self-dealing, price gouging, and fraud. He has been sued by former investors and business partners; he has been sued by other doctors; he has been sued by his own brother, twice; he has been sued by Cher.

There’s a little bit on Soon-Shiong’s ownership of the Times and The San Diego Union-Tribune. I love this quote from Norman Pearlstine, the editor Soon-Shiong brought on board to right the ship after years of bad ownership: “He made the acquisition with very little due diligence, because he thought that it had to be easier than curing cancer. I’m not sure whether he still believes that.”

To Soon-Shiong’s credit, he has made some investments in his papers, although his interest seems to have wavered from time to time. His choice of Kevin Merida, late of ESPN and The Washington Post, as Pearlstine’s successor was a good one. Soon-Shiong also enabled Alden Global Capital to acquire Tribune Publishing earlier this year, which is unforgivable. But he saved the L.A. Times — at least for now — and that’s an important legacy.

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Why the Kevin Merida announcement is good news for the Los Angeles Times

Patrick Soon-Shiong may be the most important newspaper owner in the country after Jeff Bezos of The Washington Post. So Monday’s announcement that the next executive editor of the Los Angeles Times will be Kevin Merida of ESPN was significant as much for what it says about Soon-Shiong’s commitment to the paper as it does about Merida’s own considerable abilities. Given the Times’ size, influence and unrealized potential, its fate is crucial to the journalistic ecosystem.

It was just a few months ago that Lukas I. Alpert of The Wall Street Journal dropped a bombshell: Soon-Shiong, a billionaire surgeon who bought the Times in 2018, was looking to get out. Soon-Shiong denied it, but actions speak louder than words — and now he has acted. The fact that he could recruit someone who is regarded as the best free-agent editor out there suggests he was able to reassure Merida about stability in the owner’s suite. The Times itself, in a story by Meg James, puts it this way:

His hiring reaffirms the Soon-Shiong family’s commitment to the paper they purchased, along with the San Diego Union-Tribune, for $500 million from Chicago-based Tribune Publishing in June 2018. The Soon-Shiong family has since invested hundreds of millions of dollars more to replenish the newsroom’s withered ranks, built a campus in El Segundo, upgraded the paper’s technology and covered financial losses that deepened last year when coronavirus shutdowns prompted a steep drop in advertising revenue.

Key to all this may be Soon-Shiong’s daughter, Nika Soon-Shiong, who, according to Katie Robertson’s report in The New York Times, “has become an active part of the newspaper’s management team.” In that regard, she may play a similar role to that of Linda Pizzuti Henry, who co-owns The Boston Globe along with her husband, John Henry. Linda Henry, named CEO of Boston Globe Media last year, is heavily involved in the day-to-day operations of the Globe, thus serving as a guarantor of sorts that Henry won’t sell.

Merida will be the LA Times’ second Black editor, which is also significant because of the paper’s diversity issues under former executive editor Norman Pearlstine. It also raises the question of why The Washington Post didn’t push harder to hire Merida as a replacement for Marty Baron, who retired recently. Merida was a highly regarded top editor at the Post before leaving for ESPN.

One possible explanation is that Merida is just two years younger than Baron. As Tom Jones of Poynter writes, “Maybe the Post is looking for a long-term editor — someone who could take over for 15 or so years, and, perhaps, Merida’s age (64) didn’t align with that plan.”

The Soon-Shiong ownership of the LA Times has been a mixed bag thus far. The newsroom has been bulked up in the hopes that the paper could emerge as a national force. But that hasn’t happened, and its digital subscription numbers have proved disappointing as well. It could be that there’s just no room for a fourth national newspaper along with The New York Times, the Post and the Journal. But the LA Times could dominate the West, serving as a much-needed counterbalance to the East Coast media.

All in all, the appointment of Merida was very good news, not just because he’s a first-rate choice but because it signals that Soon-Shiong is committed to the LA Times’ long-range future.

Correction. The original post described Merida as the LA Times first Black editor. In fact, he is the second; New York Times executive editor Dean Baquet served in that role from 2005 to ’06.

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