“The Return of the Moguls” hasn’t been officially released yet (that will come on March 6), but it’s already generated a Twitter battle between the Southern California-based journalist Gustavo Arellano and Eric Spitz, who, along with Aaron Kushner, are former owners of the Orange County Register.
I interviewed Arellano, then the editor of the OC Weekly, and Spitz (and Kushner) about the Register, which under Kushner and Spitz’s leadership added about 150 newsroom jobs only to go bankrupt just three years after their investment group bought the paper. The Twitter action began earlier this afternoon:
Hi Gustavo. I'm so glad that Dan chose that quote from me. I called you a scumbag because you have lost your journalistic ethics while covering us.
There is so much local media news breaking today that it’s hard to keep it all straight. Late this afternoon came the huge announcement that Boston Herald publisher Pat Purcell, who bought the tabloid from his mentor Rupert Murdoch in 1994, was taking the paper into bankruptcy with the intention of selling it to GateHouse Media.
At this point, we all have far more questions than answers. A friend suggested something to me a little while ago that is worth pondering: Can we be sure that GateHouse will end up with the Herald? Once a business goes into bankruptcy, it’s up for grabs. As I note in my forthcoming book, “The Return of the Moguls,” the executives who were running California’s Orange County Register took that paper into bankruptcy several years ago with the goal of buying it themselves. They lost out, and today the Register is part of the Digital First Media empire.
Other questions: Although cuts have already been announced, will the diminished Herald be its old recognizable blend of local news, good photography and sports coverage, and feisty tabloidism? Or will it be something else entirely? Will GateHouse keep Herald Radio up and running? Will it honor its printing contract with the Globe, or will it move operations to a GateHouse facility? We’ll learn the answers to all these questions in the weeks and months to come.
Interestingly, for a few years Purcell owned around 100 community papers in Eastern Massachusetts in addition to the Herald, selling all but the Herald to GateHouse about 15 years ago. Now things have come full circle.
No one wants to see hard-working journalists lose their jobs. We all hope GateHouse will keep the pain to a minimum, and that the Herald will be with us for many years to come.
Recently I had the opportunity to record a podcast about my Shorenstein paper on the Washington Post under Jeff Bezos with CBS News legend Bob Schieffer and Andrew Schwartz of the Center for Strategic and International Studies. Our conversation was posted on Thursday.
My Shorenstein paper is part of a book project with a working title of The Return of the Moguls, which will be about the Post under Bezos, the Boston Globe under Red Sox principal owner John Henry, and the Orange County Register under entrepreneur Aaron Kushner, to be published by ForeEdge in 2017.
Schieffer and Schwartz’s podcast, “About the News,” offers regular updates about various media topics. It’s available at iTunes.
Hard to believe, but my time as a Joan Shorenstein Fellow at Harvard’s Kennedy School will be ending soon. Recently I recorded an HKS PolicyCast podcast under the expert guidance of host Matt Cadwallader. We talked about my research regarding wealthy newspaper owners and whether the innovations they’ve introduced may show the way for others. I hope you’ll give it a listen.
As I’ve written before, I’m working on a book that will largely be about three such owners—Amazon’s Jeff Bezos, who bought the Washington Post in 2013; Red Sox principal owner John Henry, who announced he would purchase the Boston Globe just three days before Bezos made his move; and greeting-card executive Aaron Kushner, whose time as publisher of the Orange County Register ended in 2015, but whose print-centric approach made him perhaps the most closely watched newspaper owner of 2012-’13.
Bezos and the Post will be the subject of the paper I’m writing for Shorenstein, so—in case any of you folks at the Globe were wondering—I’ve suspended my reporting on the Globe for the time being. I’ll be back.
Digital news pioneer Rob Curley is out as editor of the Orange County Register, whose acquisition by Digital First Media was completed earlier today. The story was broken by the Orange County Business Journal.
Gustavo Arellano, the editor of OC Weekly, adds that some 50 to 70 employees are losing their jobs at the Register and its sister paper, the Riverside Press-Enterprise. These are “mostly on the sales, circulation, and marketing side,” Arellano writes, a sign that Digital First—which also owns several other papers in Southern California—is consolidating its business operations.
A little more than a year ago I spent a good chunk of a day at the Register as part of my book project. Curley, who made his bones as an early digital guy at the Lawrence Journal-World a dozen years ago, followed by stops at the Washington Post and the Las Vegas Sun (among other places), allowed me to spend a considerable amount of time with him and answered all questions. However, it was completely off the record, so I can’t share with you anything I learned. I can tell you it wasn’t all that eventful.
The next day, Kushner—who had tried to purchase the Boston Globe and Maine’s Portland Press Herald before leading a group that bought the Register in 2012—stepped down a day before I was to interview him. Kushner’s emphasis on print, and his head-turning moves to hire staff and buy and launch newspapers (including a short-lived daily in Los Angeles), earned him national recognition. Unfortunately, a shortage of funds led him to dismantle what he had built in very short order.
Digital First bought the Register and the Press-Enterprise for $49.8 million after the US Department of Justice convinced a federal judge that a higher bid by Tribune Publishing, which owns the Los Angeles Times and the San Diego Union Tribune, should be rejected because it would reduce competition.
It struck a number of observers, including me, that the government was engaged in outdated thinking that no longer applied to the shrinking, money-losing newspaper business. Tribune has gone through numerous gyrations over the years, but the LA Times has remained an excellent newspaper. It almost certainly would have been a better steward of the Register and the Press-Enterprise than Digital First.
Update, 5:05 p.m. Confirming a rumor I picked up earlier today, Globe tech columnist Hiawatha Bray reports on Facebook that “dozens” of Globe reporters, responding to the “fiasco” of the past week, will deliver the Sunday paper.
Today’s must-read post on The Boston Globe‘s ongoing home-delivery meltdown is by Adam Gaffin of Universal Hub. Among other things, he notes that when the Orange County Register switched to the Globe‘s new carrier, ACI Media Group, in 2014, mayhem ensued.
But I’m confused. According to the Times‘ story, the Register switched from the Los Angeles Times‘ service to ACI, based in Long Beach, California, after it fell behind on its payments to the Times. Yet when the Globe published a story on its own problems earlier this week, it identified ACI as the company that delivers the Los Angeles Times.
Googling ACI Media Group leads to dead ends and 404s (not a good sign). But I did find a cached press release from September 2010 in which ACI reported that it had at least some of the L.A. Times‘ home-delivery business:
American Circulation Innovations (ACI) is now delivering a weekly volume of 250,000 of the subscription-paid daily and Sunday Los Angeles Times. This represents a more than 100% increase of ACI’s delivery of the Los Angeles Times newspaper.
ACI’s Chief Executive, Keith Somers said: “We’ve been able to leverage our management team’s circulation background and our highly innovative and efficient delivery model to provide the Los Angeles Times with quality home delivery at reduced rates. We’re proud that our performance and service have earned increased business from such a valued and marquee partner.”
So the Orange County Register switched from the Los Angeles Times‘ home-delivery service to ACI Media Group, which also had at least some of the Times‘ business. And now the Globe is reporting that ACI has all of the Times‘ business. I guess.
The company’s new name appears to be the ACI Last Mile Network. And for what it’s worth, I haven’t been able to find any stories about problems with its service similar to what the Globe is going through. The Register‘s problems were essentially self-inflicted—though that may turn out to be the case with the Globe as well.
I thought I should say a few words about what I’m up to.
For the next year, I’ll be on sabbatical from Northeastern as I work on a book about how three business people who are passionate about newspapers are using their wealth to reinvent their papers and possibly to show the way for others. They are John Henry of The Boston Globe, Jeff Bezos of The Washington Post and Aaron Kushner of the Orange County Register. Kushner is no longer running the Register, but the print-centric orientation he took during his time at the helm has much to tell us.
My project actually became public two years ago when the Globe somehow got word. That item has proved useful in helping me to line up interviews. But only now am I embarking on the bulk of my reporting. I lost a year when I agreed to serve as interim director of Northeastern’s School of Journalism following the death of my friend and mentor Steve Burgard. Steve’s death was a difficult blow. In terms of the book, though, the delay may prove to be a good thing, as it seems to me that Henry’s and Bezos’ visions are still coming into focus.
I have a contract with University Press of New England and a year that should be (I hope) free of distractions. I’m excited to push ahead.
Late Tuesday afternoon I was at the Los Angeles Times, interviewing people about the state of the Orange County Register, when suddenly the word came down.
Aaron Kushner, who’d bought the paper in 2012 and presided over a dizzying expansion and stomach-churning retrenchment, was stepping down from his executive role. His co-owner, Eric Spitz, was moving to a reduced role. And Richard Mirman, a former casino executive who’d been brought in as publisher last fall, would become president and chief executive officer of the Register’s parent company, Freedom Communications.
The Register covers the story here; the Times here; and OC Weekly here.
I had traveled to Southern California to do some reporting on Kushner’s stewardship of the Register. I visited the paper on Monday and sat in on a news meeting. I am — no kidding — scheduled to interview Kushner later today, a meeting that took weeks to set up. I’m going to keep my appointment and see if he or anyone else will see me.
Kushner, who tried to buy The Boston Globe and then the Portland Press Herald of Maine, was widely portrayed as either a savior of the newspaper business or a naive idealist after he assumed the reins at the Register. He emphasized print over digital and more than doubled the size of the newsroom. But his moves became increasingly hard to understand. He bought The Press-Enterprise of Riverside, then launched new dailies in Long Beach and Los Angeles.
Starting more than a year ago, the expansion was reversed. Layoffs and buyouts commenced. The LA and Long Beach papers were closed. And the Register’s plant in Santa Ana was sold for $27 million.
The situation right now is confusing and fluid. In reading the Times’ and the Register’s coverage, it seems that Kushner, Spitz and Mirman all have ownership shares. Media business analyst Ken Doctor tells the Times that Mirman’s job “is to steady the place and to get it ready for another owner.”
The downward spiral of Aaron Kushner and the Orange County Register continues, reports Christine Haughney of The New York Times. The latest — a round-up of what has appeared elsewhere — includes unpaid bills, lawsuits, Kushner’s stepping aside as publisher (“I was not removed,” he insists) and, of course, Kushner’s soothing reassurances that everything is on track.
In April, when Orange County Register publisher Aaron Kushner launched the Los Angeles Register, the bloom was already off the rose. (Here’s what I wrote in June.) So it’s not really a surprise that Kushner is shutting down the misbegotten daily. Andrew Khouri of the Los Angeles Times has the details.
And here’s the inevitable quote from Kushner and his business partner Eric Spitz about all those darn naysayers:
Pundits and local competitors who have closely followed our entry into Los Angeles will be quick to criticize our decision to launch a new newspaper and they will say that we failed. We believe, the true definition of failure is not taking bold steps toward growth.