With New Media Investment Group Inc.’s proposed takeover of Gannett Co., it may be time to take stock at just how such news organization behemoths are being cobbled together.
New Media, which owns The Providence Journal, is itself owned by a combination of private equity groups and public shareholders. But if one were to guess which of the two groups are calling the shots, New Media’s track record is clearly on the side of the sharks of Wall Street.
Its local record, as personified by The Providence Journal, is clear. Trim as much as possible, and then trim a little more, all the while paying dividends to shareholders.
The result has been newsrooms all across the nation not able to perform the basic functions required by a democratic nation – informing the public about what is happening, both good and bad, in their communities.
The lesson for the rest of us is a simple one. News organizations should be run to reveal the truth, not as investment vehicles. Because what is good for shareholders is not always good for readers.