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New Victims in the 'Billionaire War on Journalism' (newsweek.com)

Newsweek offers a new reminder that internet journalism can vanish in a corporate shutdown or be "sued out of existence" -- so it certainly isn't permanent. Writers at the local New York City news sites DNAinfo and Gothamist -- as well as Gothamist's network of city-specific sister sites, such as LAist and DCist -- learned this chilling lesson on Thursday, when billionaire Joe Ricketts abruptly shut down the publications and fired their employees. The decision has been widely regarded as a form of retaliation in response to the newsroom's vote last week to unionize with the Writers Guild of America, East. Worse, for a full 20 hours after the news broke, Gothamist.com and DNAinfo.com effectively didn't exist: Any link to the sites showed only Ricketts's statement about his decision, which claims the business was not profitable enough to support the journalism...

The larger tragedy is a nationwide death of local news. Alt-weeklies are flailing as ad revenue dries up. The Village Voice, a legendary New York paper, published its final print issue in September. Houston Press just laid off its staff and ended its print edition this week. Countless stories won't be covered, because the journalistic institutions to tell them no longer exist. Who benefits from DNAinfo being shuttered? Billionaires. Shady landlords. Anyone DNAinfo reported critically on over the years. Who loses? Anyone who lives in the neighborhoods DNAinfo and Gothamist helped cover.

32 of 207 comments (clear)

  1. Lose your own money by UsuallyReasonable · · Score: 4, Insightful

    You want moneylosing local journalism, fund it yourself. Don't expect others to fund it for you.

    1. Re:Lose your own money by fafalone · · Score: 5, Insightful

      He bought the site just a few months ago. You really think he spent all that money acquiring it, then just realized it wasnt profitable? And then didn't even try to sell it to someone else? Come on.

    2. Re:Lose your own money by fafalone · · Score: 4, Insightful

      Gothamist was profitable. DNAinfo was not. So why shut down the profitable part? Oh yeah, this was union-busting, not a financial decision.

  2. Exactly - they already had negative pnl by Anonymous Coward · · Score: 5, Interesting

    These newspapers were already losing money. He was paying for them out of his personal wealth. Forming a union is going to drive costs up, not down. They basically wanted to take more money out of his pocket. I would have closed them also.

    1. Re:Exactly - they already had negative pnl by alvinrod · · Score: 4, Insightful

      It seems to me like this is a good opportunity for the former staff to start their own site. If they collectively own their own business then they don't really have need for a union and since the closed down the companies entirely, its not as though only half of the staff got laid off which makes it hard to start a new business due to lack of key people. The only thing that will have changed is that the owner is out of the picture. I'll assume that they probably don't have the capital for an office right away, but they may be able to secure a loan, or probably just work from home until things get up and running.

    2. Re: Exactly - they already had negative pnl by Anonymous Coward · · Score: 5, Insightful

      The news organizations that are more dependent on advertising for their funding tend to be closer to propaganda than news organizations with other funding sources. The ones dependent on advertisers can't really publish anything that might depict those advertisers in a bad light, even in the most minor way. They end up having less freedom, and thus are far more likely to become defenders of their advertisers, rather than objective reporters of fact.

    3. Re:Exactly - they already had negative pnl by Anonymous Coward · · Score: 4, Interesting

      I work at a company that is owned by the employees and we are in dire, dire need of a union. The thing is, while employees may have ownership shares held for them in a trust, they have no say in any of the business decisions and the shares of stock function in no way that gives them any votes or power of any kind. The company is run in a dictatorial fashion for the most part, and all decisions that hurt employees on a daily basis are justified because it supposedly will benefit their ownership stake. People are quickly let go should they complain. Union is a dirty word, but we really, really need one and we shouldn't in this situation.

    4. Re:Exactly - they already had negative pnl by ShanghaiBill · · Score: 5, Informative

      I work at a company that is owned by the employees and we are in dire, dire need of a union. The thing is, while employees may have ownership shares held for them in a trust, they have no say in any of the business decisions and the shares of stock function in no way that gives them any votes or power of any kind.

      You should tell your managers that they are doing it wrong. Harvard Business School did a study of employee owned companies, and found that they generally outperform competitors, but only if employees participated in decision making and felt involved in setting goals and resolving problems.

    5. Re: Exactly - they already had negative pnl by Anonymous Coward · · Score: 3, Informative

      It takes time and money to do good journalism. It doesn't take that much time or money to publish revenue generating opinion passing as news to make money. It used to be that many news orgs actually cared about good journalism, very few are anymore.
      It's foolish to think that news should be profitable, they never were. What makes money and supports good journalism is good entertainment and the big networks chose to skimp on the latter for profit and the whole thing went to shit.
      The people on this thread that are obviously against unions forget that most of the benefits you get while employed are the direct result of unions. The unions got to a point of overreaching and misusing their power but for the life of me, I will never understand why so many people choose to believe that a handful of fat cats deserve ALL of the money over majority of people that help them make their riches are not paid a living wage. The more money the "little"people make, the more money the people at the top will have. What we have now is a grotesque caricature of capitalism based on unrestrained greed. It's not sustainable. The greed that has put us where we are today is just stupid.

    6. Re:Exactly - they already had negative pnl by ShanghaiBill · · Score: 3, Informative

      That's socialism

      Nope, it is capitalism. ESOPs require the employees to buy or earn their shares. Once vested, they can sell their shares, either on an exchange or back to the company. Not all employees participate, and of those that do ownership is not equally distributed.

      In principle, in is no different than any other stock ownership, and you can't get more capitalist than that.

      The only real "socialist" component, is that most ESOPs are part of tax deferred retirement plans, so there is some taxpayer funded subsidy upfront. But most retirement savings are subsidized, so that is nothing special.

  3. You're gonna see a lot more billionaires by rsilvergun · · Score: 3, Insightful

    Using money to take control of media. It worked for Gawker. Gawker's pretty well disliked for their tabloid journalism, but they did a lot of real journalism on the side and used the tabloid stuff to pay for it. That's why Thiel shut them down. They'd done exposes into some of his dirty dealings in finance (and no, it wasn't because they outed him as gay).

    So get used to this. When they can't crush they'll buy and vice versa. If you want the kind of muck racking that shines a light on the bad parts of the world you've got to pay for it somehow. That used to be the tabloids, but folks seem to have forgotten that, and all that's left is corporate propaganda paid for to push their message.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
    1. Re: You're gonna see a lot more billionaires by reanjr · · Score: 4, Funny

      This could be a great exit strategy for small news organizations. Focus on digging up dirt on billionaires with the goal of getting acquired and shutdown by the billionaires. That way the billionaires are funding their own unwanted public attention.

    2. Re:You're gonna see a lot more billionaires by jcr · · Score: 3, Informative

      Gawker's pretty well disliked for their tabloid journalism,

      It's not just the half-assed bullshit "reporting" that landed Gawker on a lot of people's shit lists. I wrote those assholes off for the stunt that got them banned from the CES, years before they tried to destroy the career of the guy they stole that iPhone prototype from.

      Gawker is lucky that Apple didn't crush them like a bug and get a dozen of them tossed in jail for theft and attempted extortion.

      -jcr

      --
      The only title of honor that a tyrant can grant is "Enemy of the State."
    3. Re: You're gonna see a lot more billionaires by ShanghaiBill · · Score: 4, Insightful

      Focus on digging up dirt on billionaires with the goal of getting acquired and shutdown by the billionaires.

      Peter Thiel didn't acquire Gawker. He funded lawsuits against them and drove them into bankruptcy.

      He spent $10M to inflict $140M in damages.

  4. Re:Local Blogs by Anonymous Coward · · Score: 4, Insightful

    The "best part" is that these blogs filled with innuendo, incorrect information, and metric-tons of bias are done by hobbyists. Brilliant!

  5. Re:Local Blogs by epine · · Score: 3, Insightful

    The best part about it is the writers are mostly doing it as a hobby.

    I'm not ready yet to permanently divide the world into billionaires and hobbyists, though I can almost see this day coming in my lifetime.

  6. Horror! Tragedy! Things aren't Permanent! by ScentCone · · Score: 5, Insightful

    Please. A guy who's using his personal cash to prop up money-losing city-branded "news" web sites decides that there's no prospect of the operations continuing, especially if his employees decide to install the overhead associated with paying union bosses and having to treat every employee as if they are all equally productive, motivated, resourceful, dedicated, and generally as valuable as the next. So he bows to the inevitable and shuts down to stop the bleeding. The OP, of course, has to spin this as Eeeevil Corporatism and the usual histrionics.

    I wonder how the OP feels about the fact that the National Geographic media operation was quickly and spectacularly swirling the toiled and about to fold and take hundreds of jobs with it, without a single white knight showing up to bail them out and fix what was broken, except for (horror! tragedy!) Rupert Murdoch. Now they're back on their feet and solvent and writers, photographers, production people and the rest still have jobs there. Eeeeevil corporatism! Except it wouldn't have been evil if a notably lefty billionaire had used one of his companies to buy NatGeo, in which case that would have been great for journalism and everything else, la la la.

    Paying professional people to produce media for an audience is a business. If it can't survive without generous patronage, then it needs to die and be reborn as part of someone's foundation or other personal project, or simply die because it can't produce the value that everyone working there wants to take home every week. Buggy whip factories, etc.

    --
    Don't disappoint your bird dog. Go to the range.
    1. Re:Horror! Tragedy! Things aren't Permanent! by ScentCone · · Score: 3, Informative

      The employer doesn't pay the union, the employees do. Just, so you know next time.

      Do you really believe the things you say? Are you actually convinced that once a news operation's employees unionize that their new collective bargaining arrangement won't increase the payroll overhead for the employer? That's the whole POINT of unionizing - to get more out of the employment arrangement than the employer would otherwise be able or inclined to pay. The costs of unionizing are passed along to the employer (and to the employer's customers), by definition.

      --
      Don't disappoint your bird dog. Go to the range.
  7. Re: Local Blogs by Anonymous Coward · · Score: 5, Insightful

    Yeah, that's my complaint with them, too. The quality is often total crap, and the bias is thick and obvious. The articles are less about journalism and reporting the facts than they are editorials pushing a narrative or agenda. Some of them are so bad that they make /. look good!

  8. Not a war on Journalism. War on unionization by karlandtanya · · Score: 4, Insightful

    Heard an interview with one of the employees on the radio earlier this week.
    The way it was done was a deliberate slap in the face to the employees.

    There's some debate already whether Joe Ricketts violated labor laws.
    I've no doubt he can show internet journalism isn't profitable. And anyone paying attention in 2008 (when he got into it) knew that, too.
    The benefit Joe Ricketts gets from a "newspaper" is a place to shout from and a tax write off. It was never going to be profitable.

    It was done a week after writers unionized and the last message shouted from the "newspaper" was crystal fscking clear:
    You vote union? We vote scorched earth.

    Now. Anybody else who still has a job--do you want a union?

    --
    "Reality is that which, when you stop believing in it, doesn't go away." - Philip K. Dick
  9. Hard lesson in the 1st Amendment... by Noishkel · · Score: 4, Insightful

    Just a reminder that 'Freedom of the Press' just means that the government can't officially sensor your speech. It in no way gives you a right to have your voice heard. In practical terms it's not the 'right' for you to have to be give access to an actual printing press or by extension a news paper column, it's just that the government can't keep you from owning one without the due course of law.

    If you can't get people to listen to you enough then that's your problem, and complaining about it on Slashdot is more than useless. You might have a case for anti unionizing practices, but that's a different story all together.

  10. Re:Not a war on Journalism. War on unionization by Chris+Mattern · · Score: 4, Insightful

    Guy is running a newpaper that loses money. A change is put through that will make him lose considerably more money. So he decides it's not worth it. I am shocked.

  11. Re:Not a war on Journalism. War on unionization by JBMcB · · Score: 5, Interesting

    There's some debate already whether Joe Ricketts violated labor laws.

    What labor law would that be? As you say, he can prove that the entire venture was loosing money. He closed it all down. You think that, just because the employees voted to unionize, the NLRB can force a company to remain open? It would be one thing if he fired all the employees and hired new ones. If he simply winds down the entire company, there isn't much a lawsuit is going to do.

    Now. Anybody else who still has a job--do you want a union?

    I've only had experience with a unionized position three times. All three times I was screwed over by nepotism, organizational politics and either lies or incompetence by the union reps. So no, no union for me thank you.

    --
    My Other Computer Is A Data General Nova III.
  12. Re:Local Blogs by currently_awake · · Score: 4, Interesting

    We still have government funded news sites. The BBC and Al-Jazeera both do good work. They might be under pressure to not report negatively on their patron but there are enough of them (with different patrons) to fill in the gaps. The TV networks once funded news sites as a status thing because news isn't profitable.

  13. Re:Hell with them by Opportunist · · Score: 5, Insightful

    You ... you really believe that one can get rich by working?

    Hey, folks, gather 'round, I found the dupe that still believes the "American Dream"!

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  14. Re:What utter bullshit. by CrashNBrn · · Score: 5, Informative

    You mean the whole 8 months that Joe Ricketts owned the Gothamist LLC? That has been around for 14 years? Yeah he carried them real far.
    From TFA:

    It was always a strange fit: When Ricketts purchased the 14-year-old Gothamist LLC in March, its flagship website Gothamist quickly decided to delete articles that were critical of its new owner. In recent weeks, the staff took steps to join a union, despite the owner's resistance to the idea. "As long as it’s my money that’s paying for everything," Ricketts wrote in an email to staff in spring, "I intend to be the one making the decisions about the direction of the business.”

  15. Re:Not a war on Journalism. War on unionization by Aighearach · · Score: 3, Insightful

    "It" happened because "it" didn't really happen and you can't prove it.

    You can shut the business down and open a different business later. That part is no problem.

    The problem, or lack of problem, comes down to the actual decision to close it and if they left some sort of trail that makes it clear it was shut down over the union. It has nothing to do with if the business was shut down, or if you started a new one; it comes down to why, and what was documented about that question.

    Retaliation over labor organizing is illegal, but failing after labor organizes isn't. Nor is trying again later. But shutting them down because labor organizes is illegal. So it depends largely on if he said stupid shit to his employees while trying to talk them out of unionizing. If he said stupid shit he might be screwed. And all I know about the guy is: he's saying stupid shit now, on the same subject.

  16. Re:Local Blogs by Salgak1 · · Score: 4, Insightful

    > The "best part" is that these blogs filled with innuendo, incorrect information, and metric-tons of bias are done by hobbyists. Brilliant!

    In other words, they're just like CNN and Fox News.

    What's sad, is that the best coverage of U.S. news seems to come from the UK. The Mail, the Telegraph, the Beeb, and, occaisionally, the Guardian , , ,

  17. Re:Local Blogs by Migraineman · · Score: 4, Interesting

    There's an old adage - "Facts are reported; news is produced." You might want to try to comprehend the subtle difference between the two.

  18. Re:Local Blogs by morkk · · Score: 3, Informative

    That's a nice little homage to the Grauniad ;-)

    But proposing the Daily Mail as a news site is a couple of million miles off target.

  19. Does "Mother Jones" take advertising? by Anonymous Coward · · Score: 3, Insightful

    Funny, I just went to MotherJones.com for the first time in ages. I used to read it in the 1980's a lot. You can look up who owns it, funding, advertising issues, political bias, etc. right on the website. More transparent than most.
    (I predict a lot of people will not believe what is asserted on Mother Jones about their political bias).

  20. Re:Hell with them by Opportunist · · Score: 3, Insightful

    20 out of 200.000.000?

    By that odds, playing the lottery seems more sensible.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.