Tag: Newspapers

  • Rich guys and newspapers

    It used to be that newspaper barons got rich after they bought the papers.

    Now, with readership and advertising in a seemingly endless plummet, would-be publishers make their fortunes first.

    Despite the red ink, newspaper ownership is still alluring for some of the wealthiest Americans.

    Amazon founder Jeff Bezos is buying the Washington Post. Red Sox owner John Henry is buying the Boston Globe.

    To the concern of many on the left, the Koch brothers are said to be mulling (a newspaper headline word if ever there was one) acquisition of the Tribune Co. newspapers, which not so long ago were owned by real estate billionaire Sam Zell.

    A more progressive billionaire, Warren Buffett, started the current trend. Berkshire Hathaway has long owned the Buffalo News and recently purchased other newspapers, including the Omaha World-Herald.

    Last year Berkshire Hathaway acquired 42 daily and weekly newspapers from Media General, along with two other daily newspapers in Texas.

    Berkshire’s stock in the Washington Post will bring about $46 million in the sale to Bezos. (Also see Fortune’s discussion of why Buffett didn’t buy the Post.)

    Buffett is a self-proclaimed lover of newspapers. The Kochs, ardent libertarians who have become increasingly active in politics, are suspected of having different motives for eying the Chicago Tribune and the Los Angeles Times.

    Bezos issued a statement Monday saying, “The values of The Post do not need changing. The paper’s duty will remain to its readers and not to the private interests of its owners.”

    However, he added, there will be change.

    “The Internet is transforming almost every element of the news business: shortening news cycles, eroding long-reliable revenue sources, and enabling new kinds of competition, some of which bear little or no news-gathering costs,” Bezos said. “There is no map, and charting a path ahead will not be easy.”

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    • Private investors underwrote ‘The Butler’

      August 17, 2013 at 6:38am

      “The Butler” reached movie screens this week not because a Hollywood studio saw its potential, but because a group of wealthy individuals did.

    • Can Warren Hellman save the San Francisco Chronicle?

      Billionaire financier F. Warren Hellman is already beloved in his native San Francisco for underwriting an eccentric music festival called Hardlly Strictly Bluegrass.

      But if the California mogul can figure out how to save another bit of endangered Americana, the community newspaper, he will surely be regarded as a national, as well as a local treasure.

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      Hellman announced last Friday that he and a team of business and media experts are working on a plan for a new, sustainable model for community journalism in the Bay Area.

      While his immediate focus is on his hometown, where the Hearst Co.-owned San Francisco Chronicle has been hemorrhaging staff and money, Hellman has his eye on a model that might be adopted across the country where intense financial pressures are driving many papers into bankruptcy.

      “If we can conceptualize a model and bring it to life here, the world will take notice,” he said. “It is that simple.”

      A spokesman for Hellman told the the San Francisco Business Times that the team includes Andrew Woeber, managing director of investment bank Greenhill and Co.’s San Francisco office, consultant Susan Hirsch and representatives of the Media Workers Guild. Other participants in the regular meetings Hellman has convened include San Francisco Mayor Gavin Newsom, former Chronicle Publisher and San Francisco Chamber of Commerce President Steve Falk and executives of several local investment funds.

      He said the group has adopted a two-month timeline for reporting back to the community.

      Hellman said he began thinking about the newspaper conundrum in late February when the Hearst Corp. announced plans to sell or shutter the 144-year-old Chronicle “within weeks” unless it could win significant concessions from two major unions, the Media Workers Guild and the International Brotherhood of Teamsters.

      The unions agreed to concessions that cut dozens of jobs for yet another downsizing, but the paper is by no means out of the woods.

      Hellman, now in his 70s, has a decades-long reputation as a financial whiz.

      The youngest person (at age 28) ever to have been named a partner at now-defunct Lehman Brothers, he has been a director of more than a dozen corporations and serves as a member of the University of California Walter A. Haas School of Business Advisory Board.

      After deciding to return to San Francisco, he co-founded Hellman & Friedman, LLC, the San Francisco-based private equity investment firm, in 1984 and has been a successful investor and philanthropist ever since. He has chaired the board of The Magnes Museum, and his wife, Chris, has chaired the San Francisco Ballet. The couple also funds the San Francisco Free Clinic, an organization that provides free health care to the needy and is run by one of their children.

      But even he admits that saving newspaper is a tougher challenge than it first looked.

      “In the beginning, this may have looked like addition and subtraction,” he admitted, “but in reality we’re doing advanced trigonometry here. The one thing I am certain about is that this region deserves the best journalism, and that a way must be found to ensure that we continue to get it for decades to come.”

      He said his group is looking around the world to see if there are viable models that can be emulated and, if not, “how do we develop one?”

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      1 Comments

      • #1.   johnnyc 05.14.2009

        He said his group is looking around the world to see if there are viable models that can be emulated and, if not, “how do we develop one?”

        Indeed his business methodology will be his first notion(look to see if some elses idea provides solution). However, what we see here is that the politics (yes indeed), business models and the overall national press markets economic implementaion is the very “ROOT” cause of this predicament that Hellman perpetuates. The solution must be counteractive to this model. As a result I think you will see degraded quality, information control and increased complexity for the paper instead of a simple solution sadly. He hasn’t the solution but actually the reason for its demise….

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