GateHouse Media brass touts Gannett deal in confidential message to employees

Al Neuharth in 1999. Photo (cc) by John Mathew Smith and http://www.celebrity-photos.com.

Following the completion of a long-anticipated deal to merge GateHouse Media with Gannett, GateHouse’s top two executives, Mike Reed and Kirk Davis, sent a confidential message to the troops, a copy of which was forwarded to me by a trusted source.

GateHouse and Gannett are the two largest newspaper publishers in the United States. By coming together, they have created a media colossus, albeit one whose decline continues apace. Reed and Davis’ message says in part:

We are incredibly proud of this team’s commitment to high-quality journalism and community leadership; this mission will remain at our core. The Gannett acquisition positions us as the leader in community journalism in the United States. In addition, we believe that together, we are well-positioned to address the profound changes our industry has faced in media consumption habits and advertising spend.

As you can see for yourself, the memo is mainly corporate boilerplate (and I don’t just mean the literal boilerplate on the second and third pages). For me, the main takeaway is that they say nice things about Gannett’s flagship, USA Today, which suggests that GateHouse — clearly the lead player despite being smaller than Gannett — isn’t going to mess around with Al Neuharth’s baby, at least not right away.

By the way, you’ll see a reference in the memo to BridgeTower Media, a name I was not familiar with. It turns out that’s the name for a GateHouse division that publishes B2B titles such as Massachusetts Lawyers Weekly.

The newspaper analyst Ken Doctor broke the news of the impending merger over the weekend. Keep an eye on the debt the combined company is taking on. Doctor estimates that it could be as high as $2 billion, which would seem to suggest further cuts ahead regardless of what kinds of cost efficiencies GateHouse-Gannett is able to achieve. As I wrote for WGBHNews.org two months ago, when it first became clear that the two companies would merge:

When a chain takes on debt to keep buying more properties and extracts revenues from its individual papers in order to satisfy shareholders, there is simply less money available for journalism than there would be with independent ownership.

I don’t think this was necessarily a terrible day for local journalism. MNG Enterprises, the hedge fund-owned chain formerly known as Digital First, was kept at bay, and that’s not nothing. But neither was it a good day. Committed local ownership is the key, and this merger moves us that much farther away from it.

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Digital First wants to buy Gannett, endangering local newspapers across the U.S.

It’s hard to imagine worse news for the beleaguered business of local journalism. The Wall Street Journal reported (sub. req.) on Sunday that Digital First Media, the hedge-fund-owned chain notorious for squeezing out the last drop of blood from its newspapers, is trying to buy Gannett. Brian Stelter has posted an update at CNN.com.

Gannett is best known for publishing USA Today — which, though it’s a perfectly fine paper, it’s mainly something to look at when you’re in a hotel. The real story is its vast chain of local newspapers, which are listed here. New England is a nearly Gannett-free zone, with the Burlington Free Press of Vermont being its only holding. By contrast, New Jersey, with eight Gannett local news properties, would be devastated. Digital First owns three papers in Massachusetts: the Boston Herald, The Sun of Lowell and the Sentinel & Enterprise of Fitchburg.

According to USA Today, Gannett had not received an offer from Digital First as of Sunday night. But it’s for real, as Jeff Sonderman of the American Press Institute tweeted:

Not to praise Gannett too much. Back when the newspaper business was considerably healthier than it is today, media critics like the late Ben Badgikian reported that Gannett insisted on profit margins of 30 percent, 40 percent or more, cutting considerably into their public service mission. In recent years, Gannett has cut the Burlington Free Press to the bone. In “The Return of the Moguls,” I wrote about an alternative media ecosystem in Burlington that had grown in response to the decline of the Free Press. It’s only gotten worse at the Free Press since I did my reporting in late 2015.

But Gannett, a publicly traded company, and GateHouse Media, another hedge-fund-owned chain, at least seem to be in the business of trying to chart a path to the future. Digital First and its owner, Alden Global Capital, by contrast, appear to be in what economists refer to as “harvesting” mode, taking the last few dollars out of their shrinking newspapers before shutting them down or selling them off.

I’ve written about Digital First several times. Most recently, I wrote for WGBHNews.org about a report from the University of North Carolina called “The Expanding News Desert,” which was highly critical of Digital First and GateHouse. In 2014, I tracked the history of Digital First in New Haven for The Huffington Post — from bankruptcy to a fascinating experiment under the visionary leadership of John Paton and then back to bottom-line-oriented cost-cutting.

Let’s just hope the Gannett board decides to fight rather than give in.

Update: Ken Doctor writes at the Nieman Journalism Lab that Gannett may try to escape Digital First’s clutches by running into the arms of Tribune Publishing, known until recently as tronc.

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Orwell, waterboarding and torture

Before the Bush-Cheney years, the New York Times and other large newspapers regularly referred to waterboarding as “torture.” After it was revealed that the United States was waterboarding terrorism suspects, those papers largely stopped. After all, President Bush explained in 2005, “This government does not torture people.”

So in true Orwellian fashion, editors decided that to describe waterboarding as torture would amount to a breach of objectivity, for no reason except that, all of a sudden, there were powerful people who disputed that characterization.

That is the conclusion of a paper released earlier this year by the Joan Shorenstein Center on the Press, Politics and Public Policy, at Harvard’s Kennedy School. Titled “Torture at the Times: Waterboarding in the Media” (pdf), the study includes the following findings:

  • From the early 1930s until 1999, the New York Times characterized waterboarding as torture in 44 of 54 articles on the subject (81.5 percent), and the Los Angeles Times in 26 of 27 articles (96.3 percent).
  • From 2002 to 2008, the New York Times referred to waterboarding as torture in just two of 143 articles (1.4 percent); the Los Angeles Times, three of 63 (4.8 percent); the Wall Street Journal, one of 63 (1.6 percent); and USA Today, not at all.
  • “[T]he newspapers are much more likely to call waterboarding torture if a country other than the United States is the perpetrator.”

The study also finds that opinion writers at those papers were more likely to associate waterboarding with the T-word than were the news columns — further evidence that news editors deviated from the long-established understanding of what waterboarding really is in order to avoid being accused of anti-administration bias.

The study concludes:

The results of this study demonstrate that there was a sudden, significant, shift in major print media’s treatment of waterboarding at the beginning of the 21st century. The media’s modern coverage of waterboarding did not begin in earnest until 2004, when the first stories about abuses at Abu Ghraib were released. After this point, articles most often used words such as “harsh” or “coercive” to describe waterboarding or simply gave the practice no treatment, rather than labeling it torture as they had done for the previous seven decades.

The Shorenstein Center has documented a shocking abrogation of duty by our top newspapers in helping Americans understand what the Bush-Cheney administration was doing in their name.

The study came out in April. I’m writing about it now because the redoubtable Jay Rosen tweeted about it yesterday. This is important stuff, and I hope Rosen has given it the push it needs to become more widely discussed.

Image via Wikimedia Commons.