Fears for future of American journalism as hedge funds flex power
As the pandemic recedes in the United States, few businesses may emerge so transformed as local and regional newspapers.
More than 70 local newsrooms have closed over the past 15 months, with hundreds of media jobs lost, as the already difficult financial conditions in the industry intensified during the crisis. By some estimates, a staggering 2,100 local newspapers, or one in four, have closed in the US since 2005.
But into the carnage a new breed of owner has emerged: one that has industry veterans and media observers deeply worried about the future of journalism in America and its ability to act as part of a functioning democracy.
According to a recent analysis, hedge funds or private equity firms now control half of US daily newspapers, including some of the largest newspaper groups in the country: Tribune, McClatchy and MediaNews Group.
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