ProJo / Providence Journal sold for $46M

mabrowndog

Ask me about total zone...or paint
Lifetime Member
SoSH Member
Dec 23, 2003
39,676
Falmouth, MA
No idea what this means for their sports coverage, or for talented reporters like Brian MacPherson and Tim Britton, but I haven't exactly been thrilled with what's happened to the New Bedford Standard-Times and Cape Cod Times under the control of the new ProJo owner's GateHouse subsidiary.
 
Story
 
 
PROVIDENCE, R.I.  — Dallas-based A.H. Belo Corporation, which has owned The Providence Journal for 17 years, announced late Tuesday afternoon that it agreed to sell the newspaper operation to New Media Investment Group Inc., parent company of GateHouse Media, for $46 million.
 
Under the deal, which includes “substantially all of the assets” of The Journal, New Media will acquire the newspaper’s production facility on Kinsley Avenue but not The Journal’s landmark brick headquarters at 75 Fountain St., nor the downtown parking facilities and other property A.H. Belo owns.
 
A.H. Belo said the new owners will lease the Fountain Street headquarters and parking lots for a year after the closing of the sale.
The announcement of the sale comes one day after The Journal marked its 185th birthday. It is America’s oldest continuously publishing daily newspaper.
 
The sale is expected to close in the third quarter. New Media is one of the largest publishers of locally based print and online media in the United States, if measured by the number of daily publications.
 
It is the parent company of GateHouse Media LLC, which also owns The Herald News, in Fall River; the Standard-Times, in New Bedford; the Taunton Daily Gazette, and the Cape Cod Times, according to the company’s website.
 
 
GateHouse itself went into Chapter 11 bankruptcy proceedings in September 2013 to restructure about $1.2 billion in debt, according to the company’s website. It emerged from Chapter 11 in November under new ownership by New Media Investment Group.
 
The Journal’s circulation is about 72,000 on weekdays and 96,000 on Sundays, according to New Media’s announcement.
It was independently owned until A.H. Belo Corporation bought The Providence Journal Company in 1996 for $1.5 billion, when both corporations owned newspaper and television operations.
 
Later, Belo split into two companies, one called Belo Corporation, which operated the television stations, and the other, A.H. Belo Corporation, which operates the newspaper organizations.
 
A.H. Belo announced in December that it had hired a consultant to “explore a potential sale” of the news organization so it could concentrate on its businesses in Texas.
 
 

terrynever

Well-Known Member
Lifetime Member
SoSH Member
Aug 25, 2005
21,717
pawtucket
As a regular reader, my guess is nothing will change with the Red Sox coverage. Everyone knows they have a good thing going with Brian and Tim. The sports editor and his assistant are pretty young and energetic so there shouldn't be any changes there. The Journal has become a good hockey paper, too, with Mark Divver establishing his credentials in a sport he obviously lives. He's the assistant sports editor.
 
Like most companies that own newspapers, the former Gatehouse clan will try to trim staff wherever possible. That's never a good thing for quality of product.
 

redsahx

Member
SoSH Member
Sep 26, 2007
1,455
LF Pavillion
 
No idea what this means for their sports coverage, or for talented reporters like Brian MacPherson and Tim Britton, but I haven't exactly been thrilled with what's happened to the New Bedford Standard-Times and Cape Cod Times under the control of the new ProJo owner's GateHouse subsidiary.
 
Story
 
A.H. Belo were pretty terrible owners themselves. At the same time they had ProJo gutting it's staff, the top executives back in Dallas awarded themselves bonuses that more than covered the savings they made on all of the layoffs.
 
Executive bonuses in just two of the years mentioned above amount to more than double the amount of concessions extracted from an already desiccated news and sales operation.How can this be justified? I put that question to the companys CFO, Allison K. Engel, listed as the companys investor-relations contact, and will let you know if I hear back. But, John Hill, president of the Providence Newspaper Guild, has an answer: It cant! Says Hill on the phone the other day:

It is extremely disheartening to have sat across the table from them multiple times to hear them say what dire condition the business is in, and that we have to make sacrifices, including to our membership, and then to see the top executives in Dallas literally three months later take as bonuses the money we gave them as savings. It makes it really hard to sell austerity
I wouldn't be surprised if A.H Belo weren't the only ones pulling such stunts. Much like most smaller city newspapers, the decline in quality and quantity of coverage in the ProJo over the last decade plus has been very noticeable. It will be sad if things get any worse.
 

E5 Yaz

polka king
Lifetime Member
SoSH Member
Apr 25, 2002
90,562
Oregon
Gatehouse will eventually move the page design and layout operations to their new sweatshop in Austin. They are in the process of doing this with all their other papers at the moment. Current ProJo copy editors will be offered the chance to apply for jobs in Austin, where they are hiring relatively inexperienced people for the front lines as page monkeys.
 
Gatehouse papers are heavily templated. They all have the same basic look, which minimizes the time spent building them. Many, whether in Massachusetts or Illinois or California, share the same pages of national coverage, for example. GH is heavily invested in reader-submitted material, whether it be photos or community bloggers and columnists.
 
The ProJo is a step way out of its corporate comfort zone. It will become the largest paper Gatehouse operates, so it can either become a flagship or be brought down as other papers in the chain (as 'dog mentioned) to a generic standard.
 

worm0082

Penbis
SoSH Member
Sep 19, 2002
4,501
No matter how hard I try, I can't get these fools to stop dumping 'Projo Express' on my front lawn every Friday morning.  What a waste of paper.  Goes right in the garbage.
 

steveluck7

Member
SoSH Member
May 10, 2007
4,002
Burrillville, RI
worm0082 said:
No matter how hard I try, I can't get these fools to stop dumping 'Projo Express' on my front lawn every Friday morning.  What a waste of paper.  Goes right in the garbage.
+1,000,000
What a ridiculous premise. "Our medium is dying since people get their news up-to-the minute online so lets print a paper with news that's even OLDER than in our daily and give it away."
 

E5 Yaz

polka king
Lifetime Member
SoSH Member
Apr 25, 2002
90,562
Oregon
steveluck7 said:
+1,000,000
What a ridiculous premise. "Our medium is dying since people get their news up-to-the minute online so lets print a paper with news that's even OLDER than in our daily and give it away."
 
Is the Projo Express something with ad fliers in it? If so, that's why you're getting it. The rest is just filler