National Study and Boston Media Expert Blister Projo and Parent Company for Cuts

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National Study and Boston Media Expert Blister Projo and Parent Company for Cuts

A University of North Carolina study paints a bleak picture for the feature of newspapers — and calls out GateHouse Media for their devastating cuts at the Providence Journal as well as some of their other assets. The data used in the study is from 2017 and the cuts and closures have only increased in 2018.

The study “THE EXPANDING NEWS DESERT" finds that there is a growing number of newspapers that have closed and or been slashed.

“The announcement that a newspaper is being sold to GateHouse – the largest newspaper chain in the country — has become commonplace in recent years.  Since 2013, the company has spent more than $1 billion on acquisitions, snapping up dozens of papers in 15 states at greatly reduced valuations,” cited the study.

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“As a result, GateHouse-owned newsrooms are often half the size within a matter of months. The experience at the Columbia (Missouri) Daily-Tribune, an independently owned paper that Gatehouse purchased in 2016, is typical.  Multiple rounds of layoffs have wiped out more than half the newsroom staff of 20, leaving only one full-time state and politics reporter as of February 2018, responsible for covering a community of 120,000 residents. In addition, GateHouse eliminated local columnists and the longtime editorial cartoonist,” cited UNC’s study.

Dan Kennedy, a professor of Journalism at Northeastern University and a columnist for WGBH in Boston calls out GateHouse’s devastating cuts at the Providence Journal as one of the worst examples of corporate cutting.

“GateHouse’s decimation of the ProJo, which it purchased in 2014, has been especially brutal: By July 2018,  newsroom employment had been cut by 75 percent, bringing the staffing levels below 100. According to the NewsGuild-CWA, there were fewer than 20 reporters and columnists responsible for covering both state and city government,” wrote Kennedy in a column published on Wednesday.

But the UNC study Kennedy references was written months before another round of Providence Journal buyouts and a recent round of layoffs.

Guild Protests outside Providence Journal against cuts by GateHouse in 2017
Those two rounds of cuts saw the newsroom, editorial, and photography departments take hits.

In addition, the Providence Journal has slashed columnists like Scott Turner, who is joining GoLocal weekly.

Kennedy points out that the UNC study finds:

- About 60 daily newspapers and 1,700 weeklies have closed since 2004, an overall decline of about 25 percent.
- Nearly 200 of the 3,143 counties in the United States no longer have a newspaper. More than 2,000 counties have no daily paper.
- Residents in these “news deserts” — that is, areas without newspapers — “are generally poorer, older and less educated than the average American.”

In Rhode Island, the newspapers like the Providence Phoenix and the Newport Mercury (closed by GateHouse) have disappeared.

Corporate Consolidation

“The GateHouse acquisition spree has been fueled by debt. In 2017, its total debt equaled $609 million, roughly 14 times its cash flow," according to the report. GateHouse's corporate publicly traded parent company New Media Investment Group saw its stock bounce back a bit on Thursday, but is still trading down nearly 20 percent from its 52-week high. The company is scheduled to report third-quarter numbers on Wednesday.

"All of this calls into question how sustainable New Media/GateHouse’s aggressive acquisition and regional roll-up strategy will be long-term, especially as the company pivots away from smaller markets with less competition and focuses, instead, on acquiring dailies in larger, metro areas with numerous media competitors," writes the UNC study.

Corporate structure of the Projo leads all the way to Tokyo -- SoftBank
More recently, GateHouse has begun to close a significant number of newspapers around the country. As GoLocal reported in September, The Providence Journal and Newport Daily News lost a total of at least seven staffers that week. Both papers are owned by newspaper GateHouse.

The cuts and departures include some of the best-known remaining names at the Providence newspaper.

Deputy Editorial Page Editor Randy Edgar, reporter Andy Smith, photographer Glenn Osmundson, and online producer Stephen Ide were let go from the Providence Journal. The Projo layoffs are just part of the story.

The Newport Daily News' Ann Randall, Jane Bailey, Debbie Deming left the paper as well.

Alan Rosenberg, Executive Editor of the Providence Journal told GoLocal in September, “We had some layoffs in Providence yesterday, due to continued difficult business conditions. We’ll continue to deploy staff and freelance writers to make sure that we are covering Rhode Island’s most interesting and important stories.”

The closures by GateHouse have left some communities in the so-called "news desert." 

In Arkansas alone, the newspaper group has closed a total of five papers in recent weeks.  The closures are leaving multiple communities without any news coverage.

GateHouse Media, which last week closed two newspapers in central Arkansas, will follow that up with three more closings in Hope, Arkadelphia and Prescott.

“A community loses part of its spirit when it loses its newspaper. We're saddened for the hard-working employees of these five newspapers that have a long history with our association,” said Ashley Wimberley in an email to GoLocal. She is the executive director of the Arkansas Press Association.

“September 14 will be the last day of operations for the Siftings-Herald in Arkadelphia, the Hope Star and the Nevada County Picayune-Times in Prescott,”  reported the Northwest Arkansas Democrat-Gazette.

Efforts to reach Rosenberg for this article were unsuccessful.


GoLocal Statewide Poll - FULL RESULTS, Conducted by Harvard's Della Volpe Oct. 2018

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