Media Mayhem - Boston Globe for Sale? Major Newspaper Co. Auctioned, WPRO’s Cumulus Gets Downgraded
Monday, July 13, 2020
Much of media was in upheaval before the coronavirus, but now local television, radio, and newspapers are in near financial chaos, as the consolidation of media continues.
In Rhode Island, all of the television network affiliates, more than 80% of the radio market and the remaining daily newspapers are owned by national corporations.
It was announced Sunday that the second-largest newspaper group in the country was bought out of bankruptcy via an auction.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTHedge-fund manager Chatham Asset Management LLC emerged as the winner for the McClatchy newspaper group in the bankruptcy auction beating out another hedge fund, Alden Global Management.
Chatham also owns the National Enquirer.
The sale must be approved by the bankruptcy judge overseeing the. McClatchy publishes approximately 30 daily papers, including the Miami Herald, the Sacramento Bee, and the Kansas City Star, but has no major holdings in New England.
“A sale to Chatham would mean roughly one-third of all newspapers sold in the U.S. each day are published by companies controlled by financial institutions. Fortress Investment Group LLC manages Gannett Co., the country’s largest newspaper chain, with Apollo Global Management Inc. as the primary lender. Alden Global Capital LLC owns MediaNews Group, which publishes some 60 dailies, including the Denver Post, San Jose Mercury News and the St. Paul Pioneer Press,” reports the Wall Street Journal.
Boston Globe for Sale?
In May, Commonwealth Magazine wrote a feature story claiming that the Boston Globe is for sale. John and Linda Henry have denied the sale, but as Commonwealth reports:
IN CONTRACT NEGOTIATIONS with the Boston Newspaper Guild, Boston Globe owners John and Linda Henry are apparently insisting on the removal of a provision in the existing contract that would keep the contract terms intact if the newspaper is sold.
Guild employees, who include reporters, copy editors, and business-side employees, have been working without a contract since December 31, 2018.
According to an email sent by Guild leadership to members of the union on Friday, one of the stumbling blocks in the contract negotiations is a so-called successors and assigns provision, which the Henrys have been trying to remove since December 2018. (An earlier version of the story said the date was December 2019, which was incorrectly provided in the email.)
The Globe's union has been seeking a new contract for more than a year.
Since the Commonwealth story, the President of the Globe, Vinay Mehra, who was President of Boston Globe Media Partners, left after three years, according to an announcement to employees by managing director Linda Henry issued on June 30.
The Globe said in a statement:
We are grateful for his work in helping to stabilize and grow our remarkable organization and are especially thankful to him for building an incredibly strong and effective Senior Leadership Team. This team is well-positioned to lead our organization and to continue the important work of ensuring that our institution continues to serve our community and our mission for years to come.
We wish Vinay the best of luck in his next venture.
Linda Henry
The Globe has seen an increase in digital subscriptions -- now reported to be 200,000, but print revenue has cratered.
WPRO’s Parent Company Facing More Financial Challenges
WPRO’s ownership has been launched into bankruptcy twice in the past decade and recent financial news shows more turmoil.
Moody’s recently downgraded Cumulus’ stock to “Negative.” And this past year the stock has fallen from a 52-week high of $18.48 per share to Friday’s closure $4 per share — a 78% decline.
Cumulus's Westwood One is now being hit by layoffs, according to a Friday report from Radio + Television Business Report.
