The word is Pamplin Media Group, publisher of the Portland Tribune and 23 other local community papers in Oregon, is being shopped around for sale. 

Simultaneously, the Group is closing its Gresham Outlook printing facility and laying off its approximately 20 employees, an indicator of financial stress.

A Portland Tribune story noted earlier this year that the Pamplin Media Group “…has weathered numerous upheavals in the journalism business, three recessions that reduced advertising revenues and the COVID-19 pandemic that reduced revenues even more than the previous recessions.”

With all the bruising changes affecting the local newspaper industry, sale of the group may well lead to another upheaval. 

In early 2023, when Mark Garber handed off the position of president of the Pamplin Media Group to become president emeritus, he commented that when he’d started his newspaper career as a reporter in 1979, “We used manual typewriters and handed our copy to an editor, who marked it up, literally cut and pasted it, and then sent it to a human typesetter.”

The changes in the local newspaper business since those days have been massive, butchering a once robust news ecosystem in the United States.

The loss of local news has had far reaching implications. “As everyone knows, the internet knocked the industry off its foundations, ” James Bennet,  former editorial page editor at The New York Times, wrote in The Economist in mid-December. “Local newspapers were the proving ground between college campuses and national newsrooms. As they disintegrated, the national news media lost a source of seasoned reporters and many Americans lost a journalism whose truth they could verify with their own eyes.”

Just since 2005, the country has lost one-third of its newspapers and two-thirds of its newspaper journalists. So far in 2023, an average of 2.5 newspapers have closed each week according to a State of Local News Report by Tim Franklin, Senior Associate Dean and John M. Mutz Chair in Local News and Director of the Medill Local News Initiative at Northwestern University.  Most were weekly publications, in areas with few or no other sources for news.

“The underlying infrastructure for producing local news has been weakened by two decades of losses of newsrooms and reporting jobs,” noted an October 2022 report from the Agora Journalism Center at the University of Oregon’s School of Journalism and Communication. “And news organizations today…often sense they are swimming against the tide of economic, technological, political, and cultural changes that threaten the long-term viability of local news production.”

In Oregon’s current troubling time, when misinformation is on the rise, the civic damage from a decline in trusted, quality local newspaper coverage can be particularly severe. Even more so when local papers rip more of their content from national news outlets or run stories to satisfy distant corporate owners. “Communities that lack robust local news also tend to experience lower rates of civic engagement, higher rates of polarization and corruption, and a diminished sense of community connection,” the report said.

The recent acquisition of many legendary local newspapers by hedge funds and private equity groups shows what could await the Pamplin Media Group. 

The Register-Guard in Eugene was locally owned until 2018 when it was sold to GateHouse Media Inc.  In 2019, GateHouse Media’s parent company, New Media Investment Group, acquired Gannett, the parent company of USA Today and more than 100 other dailies, creating the largest newspaper company in the country, with the combined company adopting the Gannett name. 

Management of the new company was left to Fortress Investment Group, a private equity firm in New York City. Fortress, which controlled New Media Investment Group, the parent of GateHouse, was owned by SoftBank, a Japanese conglomerate. 

There were about 21,255 employees at Gatehouse and Gannett at the time of the merger; Gatehouse had 10,617, Gannett 10,638. Gannett has since dramatically cut costs, reducing its headcount to 11,200 at the start of 2023.

Over the years, the Register-Guard has suffered right along with Gannett. At the time of its sale to Gatehouse in 2018 the Register-Guard had over 40 employees. Its website currently lists just 3 News reporters, 3 Sports reporters and 1 Multimedia Photo Journalist. Hardly enough for robust local coverage.

The Alden Global Capital hedge fund is another company eviscerating local newspapers. Alden, which owns about 200 publications, including the Chicago Tribune, is the second-largest newspaper publisher in the country, behind Gannett. Alden is perhaps best known for acquiring and then gutting the Denver Post.

In July 2023, Los Angeles billionaire Dr. Patrick Soon-Shiong sold The San Diego Union-Tribune to an affiliate of the MediaNews Group, which is owned by Alden, for an undisclosed amount. The Voice of San Diego called Alden “the most terrifying owner in American journalism” and said the sale put the Union-Tribune “back in the American newspaper doom loop.” 

Word of cutbacks was swift. The same day as the sale announcement, the MediaNews Group sent an email to the paper’s employees saying cutbacks would be needed to “offset the slowdown in revenues as economic headwinds continue to impact the media industry” and informing staff that the new owner would be offering buyouts. If enough employees didn’t take buyouts, the company said it would lay off additional employees. 

As of the end of October 2023, employees estimated that somewhere between 60 and 80 people were left from the 108-person newsroom under Soon-Shiong.

The Voice of San Diego said the sale of the Union-Tribune to Alden put it “back in the American newspaper doom loop.” Let’s hope the sale of Pamplin Media Group doesn’t put its community newspapers in the same place.