The U.S. Supreme Court on Thursday unanimously upheld a 2017 ruling by the FCC to loosen media ownership regulations, including an end to the so-called cross-ownership ban. That ban prohibits one entity from owning a newspaper and a TV or radio station in the same market.
The FCC’s long, tortured history on cross-ownership shaped the Boston media scene from the 1950s through the ’80s. Although the ban wasn’t formalized until 1975, the FCC had much to say about the issue well before that. No one told the story better than John Aloysius Farrell in his 2001 book “Tip O’Neill and the Democratic Century,” which I wrote about for The Boston Phoenix.
It’s a pretty amazing tale, and it’s crucial if you want to understand how the dynamic between The Boston Globe and the Boston Herald played out over the course of those decades. The very short version: the Boston Herald Traveler, with the support of the Kennedys, obtained the license to Channel 5 in the 1950s through corrupt means. The Globe, with the help of O’Neill, then a young congressman, exposed that corruption. That, in turn, led to the Herald’s losing the license to Channel 5 in the early 1970s, thus cementing the Globe’s status as the city’s dominant daily newspaper.
The final act played out in the late 1980s when Rupert Murdoch, who then owned the Herald, bought Channel 25 and sought a waiver from the FCC that would have allowed him to keep both. Sen. Ted Kennedy slipped an amendment into a bill that made it virtually impossible for the FCC to grant such a waiver. Several years later Murdoch sold the Herald to Pat Purcell, a longtime lieutenant. Although the Herald enjoyed a few years of prosperity under Purcell, it eventually entered a long, slow decline, ending in bankruptcy and the sale to the hedge fund Alden Global Capital in 2018.
So now that the cross-ownership ban is gone, what’s next? A number of organizations, including the media-reform group Free Press, opposed the FCC’s move, arguing that it will make it more difficult for local groups, including those representing women and people of color, to acquire media outlets. I agree, although there’s also a case to be made that newspapers and, to some extent, broadcast media are so moribund that ownership regulations are more about the last century than this one.
It does seem likely to me that we’re going to see newsrooms that combine newspaper and broadcast operations in an attempt to save money. We’ll see less diversity and less coverage as a result. But given that virtually all media have shifted to the unregulated internet, the ultimate effect of such consolidation is yet to be determined.
I’m hardly the first person to make this observation, but there’s a reason that Google is trying to accommodate Australian news publishers while Facebook is fighting them tooth and nail: Google needs news much more than Facebook does. The New York Times puts it this way:
Facebook and Google ultimately value news differently. Google’s mission statement has long been to organize the world’s information, an ambition that is not achievable without up-to-the-minute news. For Facebook, news is not as central. Instead, the company positions itself as a network of users coming together to share photos, political views, internet memes, videos — and, on occasion, news articles.
Writing at the Columbia Journalism Review, Mathew Ingram notes that news makes up only 5% of the content on Facebook’s News Feed, at least according to the company.
While I have no problem with publishers trying to extract some revenues from the two tech giants, I’m disheartened to see that Google is trying to buy its way out of trouble in Australia by cutting deals with the likes of Rupert Murdoch. This shouldn’t be a matter of buying off critics and then resuming business as usual.
That’s why I prefer an idea put forth by the tech analyst Benedict Evans in a conversation with Ingram: help fund news by taxing Google and Facebook. At least theoretically, that could lead to a more equitable distribution of revenues to large and small publishers alike.
Regardless of what the road ahead looks like, though, it’s clear that Facebook is going to be harder to deal with than Google. The Zuckerborg just doesn’t need journalism as much.
It was last Friday at precisely 9:24 p.m. that the New York Post’s unverified and possibly false story linking Joe Biden to his son Hunter’s unseemly dealings in Ukraine crossed the line from conspiracy theory to fodder for mainstream discourse.
The occasion was a tweet by CBS News reporter Bo Erickson, who announced to his 28,500 followers that he’d asked the former vice president about it — and who, in turn, was none too pleased.
“He called it a ‘smear campaign’ and then went after me,” Erickson wrote, quoting Biden as saying: “I know you’d ask it. I have no response, it’s another smear campaign, right up your alley, those are the questions you always ask.”
I asked Joe Biden: What is your response to the NYPost story about your son, sir?
He called it a “smear campaign” and then went after me. “I know you’d ask it. I have no response, it’s another smear campaign, right up your alley, those are the questions you always ask.” pic.twitter.com/Eo6VD4TqxD
Biden does indeed appear angry in the accompanying video. And why shouldn’t he? In fewer than three days, an unsupported allegation based on emails of dubious provenance had slithered up the media food chain from Rupert Murdoch’s sleazy scandal sheet to what we once called the Tiffany Network. Now the story was “Biden denies,” and if — as appears more than possible — it was the work of disinformation agents, then they must have taken great satisfaction in a job well done.
The details of the story hardly matter. Even if the emails are genuine, all they show is that Joe Biden may have met with an official from Burisma, the Ukrainian energy company that paid Hunter Biden to sit on its board. Biden, as vice president, pressured the Ukrainian government to fire the prosecutor who was investigating Burisma. But as this piece by PolitiFact explains, it has long since been established that the prosecutor himself was corrupt, and that Joe Biden was acting on behalf of the U.S. government and the Western alliance.
What does matter is that the Post story has all the earmarks of disinformation from the campaign of President Donald Trump, from Russian interests or from both.
Consider that the two sources were former Trump adviser Steve Bannon and former New York Mayor Rudy Giuliani, one of Trump’s personal lawyers. One of Bannon’s best-known maxims is that “the real opposition is the media. And the way to deal with them is to flood the zone with s**t.” Because, inevitably, the media just can’t resist reporting on it, even it’s to debunk it or, in the case of Erickson, to get the victim to say something about it.
Moreover, The Washington Post reported last week that U.S. intelligence agents had warned months ago that Giuliani was “the target of an influence operation by Russian intelligence,” and that he was passing along Russian disinformation to the president as part of his so-called investigation into the Bidens’ connections with Ukraine. Trump’s reported response: “That’s Rudy.”
Now, I don’t mean to suggest that it was a straight line from the New York Post to CBS News. There have been more than a few zigzags along the way.
For instance, there is the matter of why Giuliani’s latest “drug deal,” to recycle John Bolton’s apt phrase, found its way into the Post rather than a more respectable sector of Rupert Murdoch’s media empire. If the story had been broken by The Wall Street Journal, for instance, we’d all be taking it seriously.
As it turns out, what Giuliani was peddling was too rancid even for Fox News, yet another Murdoch property. According to Mediaite, the news department at Fox rejected Rudy’s pitch because the veracity of the emails — allegedly found on a laptop that Hunter Biden had left at a Delaware repair shop — couldn’t be verified.
Crisis averted? Hardly. That’s not how the media food chain works. Because after the story appeared in the Post, Fox News hosts immediately began talking it up. According to the liberal watchdog group Media Matters for America, the story was discussed more than 100 times between Wednesday and Friday — not just on the opinion shows, but on the news side as well, even though the operation’s actual journalists had taken a pass on it.
And even within the Post, the story proved toxic. The New York Times reported that there were such misgivings in the Post’s newsroom that those involved in writing it refused to have their bylines put on it. In the end, the bylines of two women who may not have had much to do with it were placed atop the story. One, according to the Times’ sources, had “little to do with the reporting and writing of the article” and “learned that her byline was on the story only after it was published.”
The smear led to the usual handwringing at Facebook and Twitter as well. As The Guardian reported, both platforms took steps to limit the reach and distribution of the story on the grounds that the emails had not been verified. And that, in turn, led to the usual complaints from Republicans that the two services were censoring news that had a rightward slant. “Twitter’s censorship of this story is quite hypocritical,” wrote Sen. Ted Cruz, R-Texas, to Twitter chief executive Jack Dorsey, “given its willingness to allow users to share less-well-sourced reporting critical of other candidates.”
As I wrote recently, the media for the most part have been less gullible in covering the presidential campaign than they were four years ago, when Hillary Clinton’s emails were conflated into a massive scandal despite all evidence to the contrary. This time around, for instance, the press treated unproven claims by Tara Reade, a former Senate staffer who charged that Biden sexually assaulted her a generation ago, with the skepticism they deserved.
But Giuliani, in particular, has refused to let go of the Ukraine story. And it’s got to be damaging to Biden on at least some level for it to resurface just a few weeks before the final day of voting. You can be sure it will come up at this Thursday’s debate, and it is exactly the kind of complicated tale that can’t be refuted with a soundbite. The challenge for Biden will be explaining it in simple terms while Trump is interrupting him and yelling at him, regardless of whether his mic has been cut.
A few minutes after Bo Erickson tweeted out Biden’s response, his CBS News colleague Paula Reid came to his defense. “Biden adopts Trump playbook” by “attacking” Erickson, she tweeted, adding: “Fine to attack the story, but why personally insult Bo?”
The “Trump playbook”? Seriously? Biden’s response was sharp and a little rude, but hardly out of line given that Erickson was giving mainstream credibility to an unverified smear. Fortunately for Biden, the media for the most part appear not to be taking it seriously.
But the question of how to handle such unproven and unprovable allegations remains unanswered. Ignore them, and you’ll be accused of bias — and the story will get out there anyway. Debunk them, and you’re giving them wider play. Ask the target about them, and you run the risk of #bothsides-ism.
It’s a miserable dilemma. But that’s the state of media and politics in 2020.
The toxic combination of President Trump and Fox News has reached dangerous new levels, as the network has shifted from dismissing concerns about the COVID-19 pandemic, to (briefly) acknowledging its virulence, to pushing Trump to end the extraordinary measures being taken to slow its spread. Three data points:
On Monday, New York Times columnist Ben Smith wrote that Fox major domo Rupert Murdoch has made a bad situation worse by leaving his hands-off son Lachlan in charge: “Fox failed its viewers and the broader public in ways both revealing and potentially lethal. In particular, Lachlan Murdoch failed to pry its most important voices away from their embrace of the president’s early line: that the virus was not a big threat in the United States.”
On Tuesday night, Paul Farhi and Sarah Ellison of The Washington Post reported that Trump’s bizarre, potentially lethal embrace of ending COVID-19 restrictions weeks or months sooner than medical experts recommend — even if the oldsters die — comes straight from Fox: “Early this week, the cable network’s most prominent figures began urging the president to ditch the restrictions and get people back to work, even if doing so risks the public’s health. The commentary dovetails with, and may even have encouraged, Trump’s expressing a desire for businesses to start reopening after the federal government’s 15-day, stay-at-home period ends on Monday.”
This morning, Tom Jones, who writes the Poynter Institute’s morning newsletter, took Fox to task for hosting a Trump town hall without challenging any of his dubious assertions: “Mostly because of the incompetence and softball approach from host Bill Hemmer, the two-hour town hall produced little in the way of accountability, clarity and specifics. Once again, Trump’s message to the American people felt more like the substitute for one of his rallies than a Q&A to inform them about one of the worst crises we have ever seen.”
You have to wonder what the late Roger Ailes would have done if he were still in charge. Yes, under Ailes, Fox spouted Republican propaganda and claimed it was “fair and balanced.” But Ailes’ version of Fox was at least nominally tethered to reality, even flirting with the “Never Trump” movement during the 2016 Republican primary campaign.
What’s happening now is incredibly dangerous and is going to get people killed.
The New York Times Magazine’s massive 20,000-word takeout on the Murdoch media empire is what you might call a conceptual scoop. There is little in the way of new information, although the sheer accumulation of insider details and tantalizing tidbits is fascinating in its own way. But the real accomplishment of “Planet Fox” is that it helps us understand the Murdoch project as a coherent whole in all of its cynical, transnational, intrafamilial awfulness.
What does that coherent whole look like? Essentially this: For decades, Rupert Murdoch has built his media conglomerate in order to enhance his political power for the sole benefit of himself and his children. His method is based on synergy — that is, his control of more and more media entities wouldn’t be possible unless government officials bestowed deregulatory favors upon him, and those favors become easier for him to extract as his ever-growing control of the media makes those officials fear the consequences of saying no. His support for political figures who’ll give him what he wants has helped fuel the rise of right-wing xenophobic populism in the United States, the United Kingdom, and Australia, all of which are suffering the consequences of the chaos that Murdoch unleashed.
There must be something in the air, as this is the third major Murdoch investigation to be published in recent weeks. Last month The New Yorker gave us Jane Mayer’s examination of the Fox-Trump mind meld, which I wrote about in an earlier column. More recently, The Intercept’s Peter Maass weighed in with a profile of Lachlan Murdoch, the heir apparent, and how he devolved from an idealistic Princeton student into one of the world’s most influential white nationalists. The Times’ contribution is to make an attempt at tying it all together.
The Times has gone all out to signal that “Planet Fox” is A Major Event. The reporters, Jonathan Mahler and Jim Rutenberg, are said to have interviewed 150 people on three continents. The story takes up most of the print magazine and has been tricked out with a vibrant digital presentation, a 14-minute video, and a “6 Takeaways” sidebar.
Will it matter? Eight years ago, it actually looked for one brief moment as if Murdoch’s world might come crashing down. The phone-hacking scandal perpetrated by his tabloids threatened his U.K. holdings and seemed like it might make the leap to the U.S. In the end, though, it fizzled, as Guardian reporter Nick Davies wrote in his book “Hack Attack.” The actual effect of “Planet Fox” is likely to be even more modest. You can be sure that Fox News’ marquee hosts, Sean Hannity, Tucker Carlson, and Laura Ingraham, will simply dismiss the whole thing as “fake news” — that is, if they mention it at all.
There is, by the way, a delightful anecdote about Hannity buried in the Times article. It seems that Hannity is too much of a toady even for President Trump’s tastes. Mahler and Rutenberg write: “Trump was also spending a lot of time on the phone with Hannity, who regularly called the president after his show. Trump had often found him to be too much of a supplicant for his purposes: He preferred his more combative interviews with Bill O’Reilly, which he felt better showcased his pugnaciousness, according to a former White House official. But Trump appreciated Hannity’s loyalty.” You can just imagine Hannity wincing as he reads those words.
The story of how Murdoch initially spurned Trump and then embraced him when it became clear that Trump was going to win the Republican presidential nomination is fascinating. That episode also traces the arc of Fox News’ transformation from a combative, conservative network at least occasionally tethered to the facts, as conceived by the late Republican operative Roger Ailes, into what it is today: a propaganda arm of the Trump administration that spews lies and conspiracy theories without regard for the public good.
Writing in The Conversation, Michael Socolow of the University of Maine argues that Murdoch’s influence has been exaggerated. Fox News’ 2.4 million prime-time viewers, Socolow observes, “means that 99.3 percent of Americans weren’t watching Fox News on any given night.” But surely the Fox effect is at least partly responsible for Trump’s enduring popularity with Republican base voters. And even if the Murdoch-controlled media are not quite as influential as they are often portrayed, it is well worth exploring the nexus of racism, corruption, and political machinations that define how the “rotten old bastard,” as the media critic Jack Shafer semi-affectionally calls Murdoch, does business.
One especially chilling detail in “Planet Fox” involves Murdoch’s seemingly endless quest to acquire Britain’s Sky network. It turns out that several of Fox’s rare acts of decency — getting rid of Bill O’Reilly over sexual-harassment accusations and ordering Hannity to stop peddling wild conspiracy theories over the death of former Democratic operative Seth Rich — were rooted solely in Murdoch’s need to impress British regulatory officials that he was sufficiently ethical to run Sky.
It gets worse. We learn that Murdoch may have used his influence to pass Brexit because, as he allegedly told one interviewer, “When I go into Downing Street, they do what I say; when I go to Brussels, they take no notice.” The Sun, a Murdoch-owned tabloid, was instrumental in the Brexit victory and all the tumult that has resulted. Regulatory actions taken by the Trump administration all went Murdoch’s way, as Jane Mayer reported in her New Yorker piece. We learn, too, that Murdoch’s son Lachlan took the family’s Australian cable station in a Fox-like right-wing direction, and that its relentless anti-Muslim rants may have been a factor in the recent massacre of 50 Muslim worshippers in Christchurch, New Zealand. Two high-profile Muslim employees, one in Australia and one in the U.S., quit — one of them in 2017, although he’s speaking out now.
“Planet Fox” is not perfect. There’s a minor error involving Murdoch’s ownership of the Boston Herald. I’d have liked to hear at least a theory as to why Murdoch has maintained The Wall Street Journal as one of our great newspapers. Mahler and Rutenberg also note without comment the rise of right-wing populism in Murdoch-free zones such as Hungary, Austria, and the Philippines. In fact, many observers believe Facebook, not Fox, is the force that’s driving much of the world toward intolerance and authoritarianism — yet the Zuckerborg receives not a mention. Still, the Times has produced a comprehensive and convincing account of the carnage wrought by Murdoch and his family.
Is there hope? Murdoch is 88, so it’s hardly ghoulish to observe that he will probably not live forever. Indeed, “Planet Fox” opens and closes with a description of how he nearly departed this vale of tears in early 2018. Unfortunately, it seems that Lachlan, the more insular and right-wing of his two sons, has gained ascendancy while James, more liberal and cosmopolitan, has been pushed out. As befits a patriarchal monarchy, Murdoch’s two daughters, Prudence and Elisabeth, don’t factor into any of this.
As the story ends, we see Rupert and Lachlan riding herd over a smaller company, shorn of its entertainment assets following the sale of 21st Century Fox to Disney, waging endless war on three continents. Nothing lasts forever, of course. But it appears that we still have a few chapters to slog through before the end of the Murdoch story at long last comes into view.
The stench of corruption emanating from the White House is so noxious that it can be hard to focus on outrages that truly matter. This matters: As long rumored, but not confirmed until this week, President Trump personally intervened in the merger of media giants AT&T and Time Warner in order to punish CNN, high on the list of “fake news” outlets with which he is perpetually enraged.
The revelation is contained within Jane Mayer’s 11,500-word examination of Fox News, which appears in the current issue of The New Yorker. As Mayer describes it (and as even the most casual viewer will attest), over the past few years Fox has metamorphosed from a right-wing news operation with a shaky grasp of the truth into something much more dangerous: a propaganda outlet for Trump that serves up steaming piles of misinformation, disinformation, and conspiracy theories to its angry, fearful audience.
Not coincidentally, Fox News’ founder and guiding light, the international media magnate Rupert Murdoch, has emerged as one of Trump’s closest confidants. And Murdoch did not want to see two of his rivals merge, especially given that he had tried and failed to buy Time Warner himself just a few years earlier. Luckily for him, his business interests dovetailed with Trump’s hatred of CNN, one of Time Warner’s crown jewels.
As Mayer describes it, in the summer of 2017 Trump told his chief economic adviser, Gary Cohn, that the Justice Department should fight the merger. Citing “a well-informed source,” Mayer reports that Trump demanded action during a meeting with Cohn and his then-new chief of staff, John Kelly. “I’ve been telling Cohn to get this lawsuit filed and nothing’s happened!” she quotes Trump as saying. “I’ve mentioned it 50 times. And nothing’s happened. I want to make sure it’s filed. I want that deal blocked!” As the meeting was coming to a close, Mayer writes, Cohn told Kelly, “Don’t you f—ing dare call the Justice Department. We are not going to do business that way.”
But the Justice Department did indeed fight the merger, all the while denying any political motivations. Trump’s opposition to the merger, though, has long been thought to be driven by his hatred for CNN. Cohn himself believed it, according to Mayer. And as I argued a year and a half ago, blocking the merger could have resulted in Time Warner’s falling into Murdoch’s hands, thus fulfilling Rupe’s ambitions and giving him an opportunity to Foxify CNN. (Not that CNN isn’t in serious need of fixing, but that’s a topic for another day.)
Adding to suspicions that Trump was acting on his wish for retribution rather than by genuine concerns about the social consequences of such massive mergers was that there really didn’t seem to be much of a legal case against it. The AT&T-Time Warner deal is something we all ought to be wary of. But under current theories of antitrust law, there was little reason to block it. In fact, the Justice Department’s efforts to stop it were shot down by the courts at every step along the way, and it recently got the final go-ahead.
As Jordan Crook and Danny Crichton explain at TechCrunch, the two companies are complementary businesses rather than competitors. Time Warner is mainly a content company; AT&T is a distributor. Their combination is regarded by many economists as a “vertical merger” that could actually benefit consumers, Crook and Crichton write, by giving them “access to a more comprehensive set of services, at a lower price, while still generating profits.” Besides, in a world in which the entire media landscape is now dominated by Google and Facebook, it may be that the only way to provide competition is by supercharging other media companies.
Now I’ll grant you that in my perfect media world, I would not only have ruled against the merger of AT&T and Time Warner but I’d break up Google and Facebook as well. But it’s the world of the corporate titans, and we’re just living in it. Given that, there is every reason to oppose governmental intervention motivated by presidential pique rather than by genuine regulatory concerns.
Mayer’s report appears destined to become part of the bill of particulars that the Democratic House is assembling as it investigates Trump’s corruption and possible crimes. U.S. Rep. Adam Schiff, chair of the House Intelligence Committee, said that he has “long feared Trump would use the instruments of state power to carry out his vendetta against the press he has attacked as the ‘enemy of the people.’”
Meanwhile, another media company seeking favors from the White House is playing it safe. According to David Fahrenthold and Jonathan O’Connell of The Washington Post, the cell-phone company T-Mobile, which is seeking to merge with its rival Sprint, has spent $195,000 at Trump’s Washington hotel since announcing the proposed deal nearly a year ago — far in excess of what the company had ever spent there previously.
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.
Thanks to the U.S. Department of Justice, AT&T’s monopolistic dreams may not come true after all. According to media reports, the government may block AT&T’s proposed $85 billion acquisition of Time Warner. Even if the deal is approved, AT&T may be required to sell off CNN, one of Time Warner’s crown jewels.
Under normal circumstances, such action would be welcome news for those who have long opposed media concentration and its accompanying ills: fewer choices, higher prices, and more power for corporate executives to control what we watch, listen to, and read. But nothing is normal in the Age of Trump. And in this case, it appears that opposition to the deal may be driven less by antitrust law and more by the president’s ongoing fury at CNN.
Who, after all, can forget Trump’s outburst after CNN revealed the existence (though not the contents) of the infamous dossier of raw Russian intelligence, which claimed the president-elect had engaged in financial shenanigans and embarrassing personal behavior? “Your organization is terrible,” Trump told CNN’s Jim Acosta at a news conference last January, adding: “You are fake news.” The relationship has not improved since then.
Thus anti-monopolists find themselves in the awkward position of supporting Trump’s Justice Department on the AT&T-Time Warner merger while feeling obliged to point out that federal regulators may well be doing the right thing for all the wrong reasons. Timothy Karr of Free Press, a prominent media-reform organization that opposes the merger, nevertheless writes that “Trump would be dead wrong, however, to pull the levers of government to force more favorable coverage from CNN.” Los Angeles Times columnist Michael Hiltzik, who also argues that the merger should be rejected, worries that Trump’s loose lips and tawdry tweets may end up working to AT&T’s advantage: “Trump’s rhetoric about the deal, which dates back to his presidential campaign, has muddled the issues — and may even have increased the chances that the deal will go through with all its negative aspects intact.”
I’ve been writing about the threats posed by media concentration since the 1990s. Given the circumstances, though, I think the AT&T-Time Warner deal ought to be approved — and not because (or not just because) it would infuriate Trump. Much as I agree with Karr and Hiltzik in the abstract, I can think of three very good reasons why we might be better off if AT&T winds up as CNN’s corporate overlord.
• Rupert Murdoch — yes, that Rupert Murdoch, owner of the Fox News Channel and friend of Trump — has reportedly indicated an eagerness to add CNN to his empire should it become available. According to Jessica Toonkel of Reuters, Murdoch called AT&T chief executive Randall Stephenson twice during the past six months to discuss a possible deal should AT&T be forced to sell off CNN.
• A deal that would allow Sinclair Broadcast Group to acquire Tribune Media’s television stations appears to be on track, giving the company control of more than 200 stations around the country. And Sinclair is notorious for using its power in local markets to advance a right-wing, pro-Trump agenda. Over the weekend, for instance, David Zurawik of The Baltimore Sun detailed how a Sinclair-owned station in Alabama ran a deceptive report in its local newscast to try to discredit The Washington Post’s coverage of women who say they were sexually assaulted by Republican Senate candidate Roy Moore when they were teenagers and he was in his 30s.
• Bigger is not better — far from it. But given the enormous power over content and distribution amassed by the platform giants Facebook and Google, it may be that traditional concerns about media concentration are obsolete. Perhaps the best way to fight the new media giants is by empowering the old. As Josh Marshall of Talking Points Memo notes, AT&T’s Stephenson made exactly that point recently. “Essentially,” Marshall wrote, “he argued that only by combining a company with a dominant position in distribution (AT&T) with a content company (Time Warner) could anyone hope to compete with the platform monopolies Google and Facebook in the advertising business.”
Earlier this week, Bloomberg’s David McLaughlin, Scott Moritz, and Sara Forden reported that AT&T will ask a judge to provide the company with communications between the White House and the Justice Department if the government sues to stop the merger. That could make for some very interesting reading.
Murdoch lurking in the wings. A super-empowered Sinclair wreaking havoc in television markets around the country. Traditional media being hamstrung by old laws while Facebook and Google continue to reign unchecked. Those would be reasons enough to approve the AT&T-Time Warner merger. But the specter that President Trump is attempting to orchestrate this as a way to punish a journalistic enemy looms over all of this.
HACK ATTACK: The Inside Story of How the Truth Caught Up with Rupert Murdoch. By Nick Davies. Faber & Faber, 448 pages, $27.
For one brief moment, it looked as though Rupert Murdoch’s international media empire might be on the brink of collapse.
In the summer of 2011, Britain was in an uproar over revelations that the Murdoch-owned tabloid News of the World had hacked the voice-mail messages of Milly Dowler, a 13-year-old girl who had been kidnapped and murdered in 2002. The scandal soon spread to other papers owned by Murdoch’s News Corp. And it nearly jumped the Atlantic, as allegations circulated that Murdoch journalists had tried to listen to cellphone messages of victims of the September 2001 terrorist attacks.
The online news site GoLocalProv is taking a well-deserved victory lap now that it’s been announced that GateHouse Media will acquire The Providence Journal from A.H. Belo of Dallas for $46 million. GoLocalProv reported on June 13 that the sale was imminent. But there the matter stood until Tuesday, when we learned that the Journal had been sold to GateHouse’s parent, New Media Investment Group.
As I told Ted Nesi of WPRI.com, I think it’s a shame that some way couldn’t be found for the Journal to return to local ownership — a lost opportunity, just as it was when John Henry sold the Telegram & Gazette of Worcester to Halifax Media Group of Daytona Beach, Florida, earlier this year. There is no substitute for a newspaper that is fully invested in the community. I have no doubt that cuts will follow, just as they did when New Media/GateHouse last year purchased Rupert Murdoch’s Dow Jones community papers, including the Cape Cod Times and The Standard-Times of New Bedford.
Still, any incoming chain would make cuts, and I think the new, post-bankruptcy GateHouse, based in Fairport, New York, deserves a chance to prove it will be good steward of the Journal. Despite reductions at the Cape Cod and New Bedford papers, journalists there continue to do a good job of serving their communities. On the other hand, the more than 100 community papers GateHouse already owns in Eastern Massachusetts are strictly barebones operations.
In a full-page ad in today’s Journal aimed at reassuring his new employees, customers and the community of the company’s good intentions, GateHouse chief executive officer Kirk Davis concludes:
We know The Providence Journal plays an indispensable role in helping you live your life in and around Rhode Island. We look to uphold these great traditions and make the investments needed to thrive in the new multimedia world. The purchase is expected to close later this summer. We are looking forward to welcoming the readers, advertisers and employees of The Providence Journal to our family.
At $46 million, New Media/GateHouse paid a surprisingly high price for the Journal. Although Belo is keeping the pension liabilities, it’s also keeping the downtown property. By way of comparison, John Henry paid $70 million for the Globe, the Telegram & Gazette and all associated properties — then turned around and sold the T&G for $17.5 million, according to a source involved in the sale. One possible explanation is that the New York Times Co. sold the Globe and the T&G to the low bidder, as one of the spurned suitors, “Papa Doug” Manchester, complained at the time. New Media/GateHouse, by contrast, was presumably the high bidder for the Journal.
Another possible explanation is that the Journal is worth more to GateHouse than to other buyers because it gives the company new territory for its Propel Marketing subsidiary. According to a perceptive analysis of the deal by Jon Chesto in the Boston Business Journal, Propel is seen by GateHouse executives as “the primary engine for growth at the company.”
Yet another wrinkle: The Globe has developed a nice side business printing other newspapers, including the Boston Herald and GateHouse properties such as The Patriot Ledger of Quincy and The Enterprise of Brockton. At a time when Henry is getting ready to sell the Globe’s Dorchester plant and move printing operations to a former T&G facility in Millbury, the prospect of losing GateHouse’s business has got to be disconcerting.
