How hedge funds took over America’s struggling newspaper industry
As Covid-19 ran rampant throughout the United States in 2020, native newsrooms throughout the nation in the reduction of—at the same time as they lined the largest story in a long time.
“As far as readers, we noticed that skyrocket through the pandemic,” Emma Way, editor at Axios Charlotte, instructed CNBC. “So on the identical time that income was falling, readers had been spiking. It was type of this dilemma that I’m certain quite a lot of information organizations confronted.”
Reporters had been laid off and furloughed. Some who stayed had been provided buyouts.
It was a catastrophic and unsure time for American newsrooms.
During the pandemic, more than 70 local newsrooms closed across the nation. This contains newspapers which have served their communities for many years. Often, these papers are shut with little discover.
But the issue existed lengthy earlier than the pandemic.
Since 2004, about 1,800 U.S. newspapers have closed. Newspapers have struggled to generate profits with the collapse of print promoting as readership moved on-line. Then, the digital promoting market shortly turned dominated by tech firms like Google and Facebook.
Today, a number of the largest newspaper teams within the nation —resembling Tribune, McClatchy and Media News Group — are owned, managed by or in debt to hedge funds or personal fairness teams. In truth, hedge funds and different monetary companies management half of the day by day newspapers within the United States, according to a recent analysis by the Financial Times.
Watch the video above to search out out what which means for the newspaper industry, and the steps some newsrooms have taken to outlive.