Did a US Hedge Fund Help Destroy Local Journalism?

"What is lost when billionaires with no background nor interest in a civic mission, who are only concerned with profiteering, take over our most influential news organizations? What new models of news gathering, and dissemination show promise for our increasingly digital age? What can the public do to preserve and support vibrant journalism?" That's a synopsis posted about the documentary Stripped for Parts: American Journalism on the Brink, cited by the long-standing news industry magazine Editor and Publisher (which dates back to 1901). This week its podcast interviewed filmmaker Rick Goldsmith about his 90-minute documentary, which they say "tells the tale" of how hedge fund Alden Global Capital clandestinely entered into the news publishing industry in a big way - and then "dismantled local newspapers 'piece by piece,' creating a crises within the communities they serve, leaving 'news deserts' and 'ghost papers' in their wake." [Goldsmith] spent more than 5-years creating his latest work... a film that tells the tale of how newspapers business model is faltering, not just because of the loss of advertising and digital disruption; but also to capitalist greed, as hedge funds and corporate America buy them, sell their assets and leave the communities they serve without their local "voice" and a final check on power. On the podcast, Goldsmith notes that in many cases a paper's assets "were the newspaper buildings and the printing presses... These were worth in many cases more than the newspapers themselves." After laying off staff, the hedge fund could also downsize out of those buildings. By 2021 Alden owned 100 newspapers and 200 more publications - and then acquired Tribune Publishing to become America's second-largest newspaper publisher. The hedge fund currently owns several newspapers in the San Francisco Bay Area, according to SFGate:At first, Goldsmith's documentary might seem like it's delivering more bad news. But it avoids despair, offering hope on the horizon for news deserts where aggressive reporting is needed. It introduces the notion that the traditional capitalist business model is failing the news industry, and that nonprofit organizations must be providers of local coverage.

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