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Tag: Reade Brower

Why concerns about the Portland Press Herald’s funding are overblown

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On October 2, 2023

In Local News

Photo (cc) 2018 by Molladams

Recently Max Tani of Semafor and Richard J. Tofel, who writes the newsletter Second Rough Draft, have raised questions about whether the folks involved in the purchase of the Portland Press Herald and its affiliated Maine papers from the retiring publisher, Reade Brower, have been sufficiently transparent in disclosing who the funders are.

The papers were bought during the summer by the National Trust for Local News, a nonprofit that has been involved in several acquisitions aimed at preventing legacy newspapers from falling into the hands of corporate chain ownership. In Maine, Tani and Tofel argue, the billionaire George Soros may have been more deeply involved than was previously known, while the involvement of another billionaire who was reportedly part of the purchase, Hansjörg Wyss, hasn’t been disclosed at all.

I’m going to go out on a limb and say that this is essentially a non-issue. Tofel himself notes that the previous management of the papers remains in place and that “invocations of Soros as a sort of bogeyman have long since become a principal way to dog whistle anti-Semitism; it ranks right up there with ‘globalist’ in this rhetoric.”

More to the point, the Press Herald itself followed up on Tani’s reporting, and it sounds like the full story behind the purchase will be revealed soon. (I was interviewed for the piece, written by reporter Rachel Ohm.) Longtime Press Herald publisher Lisa DeSisto, now the CEO and publisher of the Maine Trust for Local News, the nonprofit that has been set up to own the papers, is quoted as saying, “We want to make more of a splash and have a more comprehensive introduction to the Maine Trust rather than just [putting things out in] pieces. We’re really waiting to announce a broader vision.”

Added Will Nelligan, who’s the Maine project lead for the National Trust: “We will announce that coalition of Maine funders when we announce the Maine Trust.”

No, the announcement didn’t come in September, as had been originally promised. But is that really a big deal as long as disclosure is on its way? The papers themselves, by the way, remain for-profit entities, so it seems unlikely that either the National Trust or the Maine Trust will be looking for ongoing support to prop them up.

If you take a look at the National Trust’s funders, you’ll see that, in addition to Soros’ Open Society Foundations, they include a number of respected journalism funders, including the Knight Foundation, the MacArthur Foundation, the Democracy Fund and the Lenfest Institute, which owns The Philadelphia Inquirer. The Gates Family Foundation, by the way, is a Colorado-based philanthropy that has nothing to do with Bill or Melinda Gates.

When I asked University of Maine journalism professor Michael Socolow to weigh in, he emailed me comments he had previously posted on X/Twitter, noting that Tani and Tofel had emphasized Soros’ and Wyss’ liberal politics but adding they had been unable to back up whether that was relevant. (To be fair, Tofel seemed less impressed with that angle than Tani.) Socolow said:

I’m not sure there’s a story here. Neither Tani nor Tofel specify the ways the new ownership has altered editorial content. They’re seemingly insinuating that the new ownership purchased the newspapers to shape news content for partisan political reasons. But how much disclosure and transparency about Reade Brower and his business interests did these publications publish before the sale? It’s not clear to me why there needs to be a new, and apparently higher, standard simply because the ownership is now non-profit versus commercial. If evidence emerges that the sort of meddling Tani and Tofel insinuate begins occurring, then I agree we have an important story. But we’re not there yet.

Let me end with a couple of disclosures: Ellen Clegg and I interviewed National Trust co-founder and CEO Elizabeth Hansen Shapiro on our podcast, “What Works: The Future of Local News,” and we wrote about the National Trust’s successful effort to save two dozen community newspapers in the Denver suburbs in our forthcoming book, “What Works in Community News.” I worked with DeSisto at The Boston Phoenix and Ellen later got to know her at The Boston Globe, and we both consider her to be a first-rate, ethical news executive.

The purchase of the Press Herald papers by the National Trust was unalloyed good news, and it sounds like the questions that Tani and Tofel have raised will be answered soon.

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The Portland Press Herald and its 21 other papers are sold to a national nonprofit

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On July 10, 2023

In Local News

Portland Press Herald mailbox

Photo (cc) 2022 by Jules Verne Times Two

The news about the news doesn’t get much better than this: The National Trust for Local News will acquire Maine’s Portland Press Herald and its affiliated four daily newspapers and 17 weeklies. The deal was announced earlier today. Although not all details of the sale are known, early indications are that the papers will remain for-profit entities under nonprofit ownership. The papers, known collectively as Masthead Maine, will continue to be managed by chief executive officer Lisa DeSisto.

According to Rachel Ohm of the Press Herald, the National Trust emerged as the buyer after the recently formed Maine Journalism Foundation, or MaineJF, fell short in its efforts to raise enough money to buy the papers on its own. MaineJF, also a nonprofit, then started working with the National Trust. Elizabeth Hansen Shapiro, the co-founder and CEO of the National Trust, told the Press Herald that the two organizations are continuing to work together, although it was unclear what ongoing role the foundation might have. The foundation, by the way, would have reorganized the papers as nonprofits; based on Ohm’s story, it sounds like that’s no longer on the table.

The papers were purchased in 2018 by Reade Brower, a printer who acquired them from billionaire owner Donald Sussman. Brower built a reputation as a solid steward who nevertheless was not averse to making cuts in order to stave off losses. Hansen Shapiro would not disclose what the National Trust paid, but it’s likely that Brower could have gotten more from a corporate chain looking to swoop in, gut newsrooms and squeeze out revenues. If that’s the case, then Brower deserves credit for putting his legacy above making every possible dollar.

The independently owned Bangor Daily News remains the only daily in the state that isn’t part of Masthead Maine.

The governance structure of the new ownership has yet to be announced, and maybe even the principals don’t quite know what it will look like yet. The National Trust is best known for rescuing a group of weekly and monthly papers in suburban Denver back in 2021, and now owns them in conjunction with The Colorado Sun, a well-regarded for-profit digital startup.

Earlier:

A new wrinkle in the quest to convert the Portland Press Herald into a nonprofit

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On July 3, 2023

In Local News

Portland Harbor after dark. Photo (cc) 2021 by Paul VanDerWerf.

Brian MacQuarrie of The Boston Globe has an overview of efforts to sell the Portland Press Herald of Maine and its affiliated daily and weekly papers.

Back in April, I wrote about the establishment of a nonprofit organization, the Maine Journalism Foundation, known as MaineJF, which was hoping to purchase the papers from owner Reade Brower. MacQuarrie reports that yet another nonprofit group, the National Trust for Local News, “is believed to be in the running.” I assume that the trust is looking to work with the MaineJF rather than compete, so that is potentially a promising development.

Last August, Elizabeth Hansen Shapiro, the CEO and founder of the National Trust, was a guest on our podcast about the future of local news, “What Works.” Ellen Clegg and I spoke with her about her organization’s work in saving legacy newspapers from the depredations of corporate chain ownership.

The trust is perhaps best known for facilitating the sale of Colorado Community Media, a chain of weekly and monthly papers in the Denver suburbs. Hansen Shapiro is also an advisory board member of The Lexington Observer, a hyperlocal nonprofit startup.

A new group in Maine would reorganize the Portland Press Herald as a nonprofit

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On April 23, 2023

In Local News

The Maine Sunday Telegram is the name of Sunday’s Portland Press Herald

Last month we learned that Reade Brower was getting ready to sell Maine’s Portland Press Herald and several other newspapers. Today we received good news: a nonprofit organization is hoping to acquire those papers and run them for the benefit of the public.

Retired Press Herald columnist Bill Nemitz, president of the newly formed Maine Journalism Foundation, writes that the nonprofit aims to buy Brower’s five daily and 25 weekly newspapers, known collectively as Masthead Maine, to “sustain and nurture Maine’s reputation as a bastion for independent local news.” Nemitz adds:

We at MaineJF want to be the next to carry the Masthead Maine banner. Our goal initially is to acquire the company and operate the various publications as a nonprofit. Beyond that, we will seek ways to enhance all journalism in Maine through targeted support for and collaboration with our media colleagues. Maine Public, for one, comes to mind.

In recent years, several papers have been acquired by nonprofit foundations, but the papers themselves continue to be for-profits. The most prominent example of that is The Philadelphia Inquirer. By contrast, Nemitz’s description sounds like the Press Herald and its sister papers will themselves be nonprofits, joining the Salt Lake Tribune and the Chicago Sun-Times, both of which have been reorganized as nonprofits.

Nonprofit status removes the pressure of having to satisfy investors, but it does come with some disadvantages as well: a nonprofit newspaper can’t endorse political candidates or specific pieces of legislation. Last fall the Press Herald published endorsements on ballot questions but not for candidates. As a nonprofit, it wouldn’t be able to do either.

Nemitz said that the new foundation is seeking to raise $15 million from large and small donors to buy all of Brower’s papers.

Brower, by all accounts, has been a good steward of the Press Herald. When he announced last month that he was seeking to offload his papers, he said he wanted to leave them in good hands, and he specifically mentioned a nonprofit organization or a public benefit corporation. Now it looks like he’ll get his wish — provided MaineJF can accomplish its fundraising goals.

Maine publisher Reade Brower says he’s ready to move on. So what comes next?

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On March 31, 2023

In Local News

Portland Harbor. Photo (cc) 2021 by Paul VanDerWerf.

Maine newspaper publisher Reade Brower is getting ready to move on. Michael Shepherd and Lori Valigra of the Bangor Daily News, the only daily in Maine that Brower doesn’t own, reported on Thursday that the publisher is seeking to wind down his stewardship of the Portland Press Herald, four other daily papers and a number of weeklies.

In a follow-up by the Press Herald’s Eric Russell, Brower sounded like he isn’t in any hurry, and that he was not yet sure what the transition might look like. Brower put it this way in a memo to the staff:

The truth is I am beginning the search for what’s next, whether that be a new steward or perhaps partners willing to join me in carrying the torch. We are watching new ownership models emerge across the country from B-corporations to nonprofit efforts. Transparency has always been a pillar of journalism, and it’s important to me personally. That said, people will speculate because it is human nature. Over the past couple of years, I have been approached and looked at different pathways for the future but did not pull the trigger — either I wasn’t ready, I still felt my job was not completed, or the path just didn’t feel right.

A B-corporation is another name for a public benefit corporation — for-profit that is under no obligation to maximize earnings, allowing revenues to be reinvested in the mission. In the news world, some well-known B-corps include The Colorado Sun, Lookout Santa Cruz and, closer to home, The Provincetown Independent.

Brower, by all accounts, has been a decent steward of his Maine properties. More important, he’s kept the national chains out of the state, and he may well have outlasted them. Gannett is getting rid of papers, as Sarah Fischer of Axios observes, so it would be unlikely that the company would bring its special brand of looting and pillaging newsrooms to Portland The hedge fund Alden Global Capital hasn’t acquired anything for quite a while, so perhaps we can hope that its executives are content with their current holdings. As I told Russell, “Whether this has a happy ending or not depends on who steps forward as buyer.” If Brower’s memo is any indication, he cares about his legacy.

Brower came in after a tumultuous period at the Press Herald, which I recounted in my book “The Return of the Moguls.” In 2008, the paper’s then-owner, The Seattle Times, sold it to a businessman named Richard Connor, who promptly ran it into a ditch. Four years later, the paper was nearly sold to Aaron Kushner, a wealthy Boston-area tech entrepreneur who had previously been spurned in his bid to purchase The Boston Globe.

Union leaders at the Press Herald rebelled at Kushner’s demand for concessions. Kushner moved on, buying the Orange County Register in Southern California and steering it into bankruptcy after a massive, ill-advised expansion failed to produce the revenues he was hoping for. The Press Herald’s fortunes, meanwhile, began to improve. First, billionaire Donald Sussman stepped forward and ran the paper for a few years. Then, in 2015, Sussman was succeeded by Brower, a printer who lacked Sussman’s deep pockets but who cared about news coverage and kept cuts to a minimum.

The Press Herald and its affiliated newspapers have a reputation for doing things the right way, and Brower surely deserves credit for that. I hope this week’s news means the continuation of what he has accomplished — and not the beginning of the end.

 

The Globe will partner with the Portland Press Herald on a Spotlight reporting project

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On February 9, 2021

In Media

The Boston Globe will partner with the Portland Press Herald on an unspecified investigative reporting project, according to the trade publication Editor & Publisher. The partnership will produce “a multi-part investigative report that will be published by both organizations this fall.”

The project will be funded by the Spotlight Investigative Journalism Fellowship, established by the Globe and Participant Media, the producers of the movie “Spotlight.” Grants of up to $100,000 are awarded to reporters or teams of reporters. This is the first time the Globe has partnered with another news organization. The series will be published by both papers.

Scott Allen, the Globe’s assistant managing editor for projects, declined in an email to say what the topic of the reporting would be — but when I noted that the Press Herald reporter who’ll be working on the project, Penelope Overton, covers the lobster industry, Allen said that “we expect to take full advantage of her considerable expertise.”

There are some interesting intersections between the Globe and the Press Herald. The E&P story points out that Press Herald managing editor Steve Greenlee worked at the Globe for 12 years. But it goes beyond that. Lisa DeSisto, who is chief executive officer of the Press Herald and its sister papers, was previously a high-ranking business-side executive at the Globe (and, before that, a colleague of mine at The Boston Phoenix).

The two papers also have the distinction of having been pursued by Boston-area businessman Aaron Kushner, who tried to buy the Globe in 2010 and nearly succeeded in buying the Press Herald in 2012. Kushner and a team of investors ended up purchasing the Orange County Register in Southern California later in 2012. They spent considerable resources in building up the Register and acquiring and launching other papers — only to tear it all down in short order when the hoped-for revenues failed to materialize. Today the Register is owned by the notorious hedge fund Alden Global Capital. (I tell the story of Kushner’s newspaper adventures in my book “The Return of the Moguls.”)

Today the Press Herald is owned by Reade Brower, a printer, who’s built a small chain of Maine newspapers and gets generally high marks for his stewardship. The Globe, of course, is owned by billionaires John and Linda Henry.

Making sense of the Portland Press Herald’s elimination of its Monday print edition

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On January 6, 2020

In Media

Those of us who have followed the transition of newspapers from print to free digital and, now, to paid digital have long predicted that seven-day print will eventually morph into one weekend print edition supplemented by digital the rest of the week.

Last week the Portland Press Herald announced it would take a step in that direction, eliminating its Monday print edition starting in March. Like many papers, the Press Herald has been emphasizing paid digital, so a cutback on print should be seen as an inevitable next step rather than the beginning of the end.

Still, I was curious about the decision to cut print on Monday. Among those of us who follow such things, the speculation usually involves eliminating the Saturday paper, or publishing the big Sunday paper on Saturday as an all-weekend edition. (The Sunday edition of the Press Herald is called the Maine Sunday Telegram.)

According to the Press Herald’s latest filing with the Alliance for Audited Media, the Saturday print edition is slightly larger than the Monday edition (25,450 to 25,358). The Saturday edition, though, gets an artificial boost — the Press Herald offers a four-day Thursday-through-Sunday print subscription as a cheaper alternative to seven-day (soon to be six-day) print. Paid Sunday print circulation is 40,091.

Still, anyone who’s paged through the Monday edition of a local daily newspaper knows that advertising on that day is virtually non-existent. So, for a variety of reasons, the Press Herald probably made the right choice.

Also, Kris Olson offers this:

The Press Herald isn’t the first daily paper to cut print days. It’s worth watching, though, because the owner, Reade Brower (who also owns most of the daily newspapers in Maine as well as a few weeklies), seems committed to coming up with a long-term strategy for economic sustainability. Press Herald publisher Lisa DeSisto tells her paper that the Monday move will enable the paper to avoid cutting staff.

Perhaps he might consider emulating the Arkansas Democrat-Gazette, which last year eliminated print except on Sundays and gave its paid subscribers free iPads so they could continue to read the paper online.

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No, the Digital First approach to newspaper ownership is not defensible

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On May 13, 2018

In Media, The Return of the Moguls

Politico media columnist Jack Shafer has written, if you can believe it, a semi-defense of the hedge fund Alden Global Capital and its principal, Randall Smith, who are in the midst of running their newspapers into the ground. Alden owns the Digital First Media chain, whose Denver Post is the locus of an insurrection against hedge-fund ownership. The 100-paper chain also owns three Massachusetts properties: the Boston Herald, The Sun of Lowell and the Sentinel & Enterprise of Fitchburg.

Shafer’s argument is a simple one: the end is at hand for the newspaper business, no one has figured out how to reverse its shrinking fortunes, and so therefore Smith can’t be blamed for squeezing out the last few drops of profit before the industry collapses. “Smith may be a rapacious fellow,” Shafer writes, “but his primary crime is recognizing that print is approaching its expiration date and is acting on the fact that more value can be extracted by sucking the marrow than by investing deeper or selling.”

Now, it’s possible that Shafer is right. But I’m considerably more optimistic about the future of newspapers than he is. Let me offer a few countervailing examples.

1. I certainly don’t want to sound naive about GateHouse Media, a chain of several hundred papers controlled by yet another hedge fund, Fortress Investment Group. GateHouse, which dominates Eastern Massachusetts, runs its papers on the cheap, too, and I’ve got a lot of problems with its barebones coverage of the communities it serves.

But GateHouse, unlike Digital First, is committed to newspapers. That’s why both insiders and outsiders were hoping GateHouse would buy the Herald. I genuinely think the folks at GateHouse are trying to crack the code on how to do community journalism at a profit for some years to come — and yes, its journalists are underpaid, and yes, I don’t like the fact that some editing operations have been centralized in Austin, Texas. But it could be worse, as Digital First demonstrates. For some insight into the GateHouse strategy, see this NPR story.

2. Smaller independently owned daily papers without debt can do well. The Berkshire Eagle is in the midst of a revival following its sale by Digital First to local business interests several years ago. In Maine, a printer named Reade Brower has built an in-state chain centered around the Portland Press Herald that by all accounts is doing well.

3. Large regional papers like The Denver Post are the most endangered. Transforming The Washington Post into a profitable national news organization, as Jeff Bezos has done, was a piece of cake compared to saving metros. As I describe in “The Return of the Moguls,” billionaire owner John Henry of The Boston Globe is pursuing a strategy that could result in a return to profitability: charging as much as the market will bear for print delivery (now up to more than $1,000 a year) and digital subscriptions ($30 a month). Globe executives say the paper is on track to pass the 100,000 mark for digital subscriptions in the first half of this year, and that the business model will start to look sustainable if it can reach 200,000.

In other words, reinventing the newspaper business is not a hopeless task. Randall Smith and Alden Global Capital have taken the easy, cynical route — but not the only route. There are better ways.

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