McClatchy had bought Knight Ridder for $4.4 billion to create the second largest news company. After going into Chapter 11 bankruptcy, McClatchy was won in an auction by a hedge fund, which also owns the National Enquirer, in a secret bidding which started with $30 million cash and $270 million in debt.
None of this says anything good about the future of its D.C. bureau, or the Miami Herald, the Fort Worth Star-Telegram, the Sacramento Bee, the Kansas City Star, and other hollowed out husks of major urban papers carrying huge loads of pension debt and even bigger loads of radical left-wing politics.
Earlier this year, Warren Buffett had dumped 30 newspapers that he had bought for $344 million for $140 million. The Newseum, a $450 million media museum, backed by Gannett, was sold off last year.
Gannett, the biggest newspaper chain in the country, lost $80 million in the first quarter of the year even after a merger in which it slashed jobs at some of the hundreds of newspapers which it controls.
Over 20,000 media jobs have been wiped out in the previous two years and it’s just getting started.
There’s too much content chasing too few advertisers and subscribers. The internet took away the death grip that local papers had on certain kinds of advertising and made other kinds irrelevant. And people have a lot more options for breakfast reading material than just subscribing to the local rag.
The media radicalized even as it became more economically vulnerable, alienating print subscribers who tend to be older and more conservative. Papers have been chasing digital
Continue reading: The Media’s Political Suicide – Frontpagemag