The Giant Wants To Grow

Last week I wrote a post about Gannett’s new idea of ‘citizen journalism’, and it seems this huge news company that publishes USA Today and about 90 daily newspapers has had more buzz surrounding its name. 

Jeff Clabaugh wrote about it in the South Florida Business Journal.

Gannett, the nation's biggest newspaper chain, is reportedly interested in making a bid for pieces of Tribune Co., the nation's second-largest publisher.

As if Gannett isn’t big enough already. Ha.

Reading this report makes me recall what Bill Kovach and Tom Rosenstiel wrote in The Elements of Journalism.

On page 31, the authors give three factors causing a shift away from journalism connected to citizen building. Those are: the nature of the new technology, globalization, and conglomeration.

I personally am interested in the conglomeration factor. The authors wrote that critics have long railed against the rise of news chains, companies that own outlets across different communities.

In large chains, it seems profit making is becoming a requirement. This is disquieting.

Another book I’ve read, The News About the News, expresses the concern. Who said a newspaper had to make 40% profit? What’s wrong if your newspaper only makes 5% profit a year? Where did we get the idea that our media models have to be based on the profit margin?

The dominance of the big chains can be thought of as a crisis. How do you argue that it’s okay for the newspaper to get 5% profit each year when the chain says make 25% or we fire you. Editors’ compensation depends on profit margins, not quality. They don’t get a raise just because they obtain more readers, either.

Back to the report about Gannett.

McLean, Va.-based Gannett, which hasn't commented on the report, would be among at least five bidders expressing interest in parts of Tribune's business. Gannett's interest was first reported in the Chicago Tribune.

Under shareholder pressure, the board at Chicago-based Tribune's board agreed to consider selling off individual assets of the company's business.

So far, reports have indicated Los Angeles billionaires Eli Broad and Rob Burkle have made a bid for the whole Tribune Co., while private equity firm have figured in other reports.

Should we be concerned that the giant news chain is growing even larger? Or does it not even matter because the newspapers are just shifting from one chain to another?

One thing is for sure, though. As Kovach and Rosenstiel said on page 64 of The Elements of Journalism, “If independence is the key asset of the news company – and the key meaning of the First Amendment – the challenge is how to maintain that in a corporate culture of … the board–appointed CEO.”