Folks with several hundred million dollars and outspoken opinions have been buying up newspapers. The Omaha Herald, San Diego Union Tribune, Portland Press Herald, and Philadelphia Inquirer.
At the end of last year, Warren E. Buffett bought The Omaha World-Herald through his company, Berkshire Hathaway. This would be the same Mr. Buffett who told his annual shareholder meeting in 2009 that newspapers faced “unending losses” and that he would not buy most of them “at any price.” Yet there he was, ponying up $200 million for a relatively small regional newspaper in Berkshire Hathaway’s hometown.
And he is not alone. Douglas F. Manchester, a very rich developer, bought The San Diego Union Tribune at about the same time, for a reported $110 million. At the end of last month, S. Donald Sussman, a hedge fund manager and philanthropist who is married to a congresswoman, Chellie Pingree, bought a stake in the company that owns The Portland Press Herald in Maine.
And then word came at the beginning of last week that a group of very rich, very influential Philadelphia businessmen — including George E. Norcross III, a Democratic power broker in Southern New Jersey, and Lewis Katz, the parking magnate — bought the Philadelphia Media Network, which owns The Inquirer, The Daily News and Philly.com.
via NY Times
What does this mean?
People like William Randolph Hearst and Robert McCormick wielded their newspapers as cudgels to get their way. It was only when newspapers began making all kinds of money in the postwar era that they were professionalized and infused with editorial standards.
“We are going back to a form of ownership that dominated in an earlier era,” said Alan D. Mutter, a newspaper and technology consultant. “As newspapers become less impressive businesses, people are going to buy them as trophies or bully pulpits or some other form of personal expression.”
“People just have to be aware that other agendas exist”