Trending: Chains Selling Off Smaller Local Newspapers

As chain consolidation brings new uncertainty to an already fluid news landscape, another trend is emerging in which local investors buy news outlets from large chains and seek to reverse what they see as decades of disinvestment, according to Mark Jacobs, writing for local initiative at  Northwest.edu.

Sara April, whose firm Dirks, Van Essen & April brokers the sale of newspaper companies, expects to see more news outlets go into local hands as some big chains focus on their larger products and spin off their smaller ones.

“It’s definitely safe to say that there is a trend of some newspapers returning to local ownership,” April said. “… It made sense for these large newspaper companies to build when they did, but now it’s making sense for them to peel off these papers and put them in the hands of people who can really operate them in this day and age.”

In some ways, large chains can be beneficial for local news consumers. They often bring website expertise, technical support and consistent business practices. And they may have a greater ability to recruit talent.

But local owners’ strong presence in the community may be more important, according to Penny Abernathy, creator of the influential “news deserts” reports and visiting professor at Northwestern University’s Medill School of Journalism, Media, Integrated Marketing Communications.

In the wake of the Gannett-GateHouse merger in November 2019, Gannett is selling off some of its smaller news outlets. And industry observers are watching for what comes out of Alden Global Capital’s recent acquisition of Tribune Publishing and whether any of Tribune’s news outlets will end up in the hands of local owners.

Gannett’s strategy appears to be focused on its bigger properties, with some smaller ones up for sale.

April, whose firm represents Gannett in many transactions, cited a number of recent deals. The Reid family purchased three Gannett outlets in February, adding them to its group of small papers in Oklahoma. Larry and Sharon Hiatt acquired Gannett’s Cherokee County News-Advocate in Baxter Springs, Kansas, in March. Former Guam Lieutenant Governor Kaleo Moylan bought the Pacific Daily News from Gannett in February. (Dirks, Van Essen tracks newspaper transactions on its website.)

Gannett declined an interview request about its strategy but did issue a statement from Bernie Szachara, President of U.S. Publishing Operations.

“Having been approached by prospective buyers, we’ve carefully considered what was best for both our company and the community, and we’re pleased that in several situations, a local owner will continue to lead these brands into the future,” Szachara said.