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* Crain’s on Michael Ferro’s move on the Tribune…
The Tribune gives Ferro a bigger base from which to build the digital platform that would allow content creators to make more money for their efforts, something he’s long talked about, and tried, without success, to create at the Sun-Times.
But nearly everyone else wonders whether Ferro’s 16.5 percent stake in Tribune lays the groundwork for a final chapter in the consolidation of the daily newspaper market that has occurred elsewhere but left Chicago among a handful of two-paper towns.
“My hunch is these (papers) are soon to be consolidated—it’s just a matter of time,” says Chris Geier, partner-in-charge of Chicago-based Sikich Investment Banking. “They always tell everyone they’re going to operate autonomously. At the end of the day, though, they’ve got to capture the economies.”
* Korecki rightly whacks Ferro’s legacy…
– A costly newspaper app was ordered up that for months sucked time and talent into its making. It was quickly dismantled once it was discovered it couldn’t make money.
– Launched Grid, a business publication, insisting it was produced in print format as well as online. It was quickly dismantled.
– In a soul-crushing move, the entire photo staff was suddenly fired with management citing budgetary issues and movement into a new era of digital content. Small but talented video staff remained on board.
– Small but talented video staff laid off.
– Suddenly reversed a policy of no political endorsements in the middle of the gubernatorial campaign to endorse just one person in one race — a former investor.
– Sun-Times launched Early & Often, a political website which had sponsors, new ad content, sold-out political events and … it was dismantled. New sports and breaking news portals were also dismantled just weeks after cost was put into their development.
There’s more, of course, including the McKinney thing.
* But…
Ferro said the Sun-Times is in a “very healthy position now,” and discounted the idea that his dual ownership signaled Chicago would soon be a one-newspaper town.
“They’re different products,” Ferro said. “I see both products being around for a very long time.”
* Feder…
“As nutty and crazy as he is, Ferro has kept the Sun-Times alive,” said a source close to both companies. “You have to give him credit for that.”
* And Neil Steinberg is very upbeat about the future after meeting his company’s new top dog…
In the wake of Sun-Times owner Michael Ferro’s purchase of the largest single share of the Chicago Tribune’s parent company for $44.4 million, the Sun-Times’ staff gathered in the lunchroom and met the new chairman of our board, Bruce Sagan, who explained what the purchase means for us.
“The people involved in the last Sun-Times purchase believe in two newspapers,” he said. “There it is, a second voice.” […]
The Tribune is $400 million in debt, Sagan said. The Sun-Times has no debt.
“They took the deal because they needed the money,” said Sagan, the longtime publisher of the Hyde Park Herald, who used the money he made there to invest in the Financial Times, the New York Times, where he started the Chicago News Cooperative, and the Sun-Times. “If you are going to bet on something, better bet on us. They’re in disarray. He left us a growing institution.” […]
Someone asked about our web site. Sagan said it was terrible. Publisher Jim Kirk said it would be fixed soon. Someone asked about the Sun-Times’ future.
“If I have my way you’ll be here forever,” Sagan said.
Thank goodness that somebody over there has finally admitted the CS-T website is an abomination. Yes, it’s gotten a bit easier to navigate, but if you’re a content provider and you only display a few stories on each page, you’re not providing content. Stuff just disappears into the ether on that site. And years of stories are no longer available.
* Meanwhile…
Addressing Tribune Publishing employees during a webcast Thursday, Ferro gushed over his new investment and outlined his vision for helping Tribune Publishing reverse years of industrywide revenue declines.
“It’s not as simple as one may think,” Ferro said. “It’s not about digital subscribers or print. Some of the biggest companies in the world are using our data and making billions of dollars on it, and we need to find a way how we tap into that so that our journalism remains stronger than ever.
He’s obviously come up with yet another big idea.
posted by Rich Miller
Friday, Feb 5, 16 @ 10:28 am
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“They’re different products,” Ferro said. “I see both products being around for a very long time.”
Right. One is a political shill for Bruce Rauner and the other?
Comment by There is power in a union... Friday, Feb 5, 16 @ 10:32 am
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Right. One is a political shill for Bruce Rauner and the other?
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… is a political shill for Bruce Rauner.
Comment by Frenchie Mendoza Friday, Feb 5, 16 @ 10:34 am
Be scared. Be very scared. Ferro as the only media owner in town is such a deeply disturbing thought. I feel terrible for all my journalist friends and for Chicago. If you love good journalism and fairness and honesty, yesterday was a horrible day.
Comment by Chicago Cynic Friday, Feb 5, 16 @ 10:34 am
S-T has an old newspaper hand running things with Sagan at the helm. If anyone can keep the paper alive and independent, its Sagan.
Comment by Southside Markie Friday, Feb 5, 16 @ 10:51 am
The prospect of an eventual merger is both sad, and scary. Seen it happen in two cities where I was an ink-stained wretch, and the rich got richer, the quality of journalism suffered, and the general populace was much less informed…
Comment by Independent retired lawyer, journalist Friday, Feb 5, 16 @ 11:03 am
Isn’t the Tribune still controlled by Sam Zell, one of Rauner’s top contributors?
Comment by Hullabaloo Friday, Feb 5, 16 @ 11:46 am
“Isn’t the Tribune still controlled by Sam Zell, one of Rauner’s top contributors?”
No.
http://articles.chicagotribune.com/2013-01-13/business/ct-biz-trib-series-1-20130113_1_sam-zell-randy-michaels-big-gamble and
https://www.washingtonpost.com/business/economy/how-zell-is-sinking-tribune-a-second-time-around/2013/06/20/5ff405a8-d9e5-11e2-a9f2-42ee3912ae0e_story.html
– MrJM
Comment by @MisterJayEm Friday, Feb 5, 16 @ 12:28 pm
If the papers do merge, wonder what wins out, the ST more city centered view point or the Trib’s more suburban view point?
Comment by From the 'Dale to HP Friday, Feb 5, 16 @ 1:28 pm
It saddens me to say it, but the day of printed newspapers is winding down. I used to beg my parents for money to go buy the Chicago Daily News when I was a kid. I doubt that I understood much of what I read….but they were happy I was reading.
To some of the posts about politics of the papers. The Chicago Tribune has endorsed every Republican Presidential candidate….with 1 exception. And had that picked a different running mate….they would have endorsed him. There were days reading the Tribune was like reading “fox news”. An editor in the mid 80’s (I think, Rich you might remember this) changed most of that and the main news section became independent.
As to the website and articles on line. There isnt much editing done these days it seems. Misspelled words and referring to someone as the “affluenza teen”. It reminds of reading the Weekly World News.
News is now online. And in some ways…it saves paper. I’m used to it. But its sad. I enjoyed reading the physical paper.
Comment by Jack Stephens Friday, Feb 5, 16 @ 2:16 pm
Jack Stephens, I agree with your statement. I find it amazing that Ferro now controls the Tribune, Sun Times and the Reader, but no one really cares as reflected in the low number of comments. Thirty years ago it would have been a major story and U.S. Government approval may have been needed.
Comment by Chicago Guy Friday, Feb 5, 16 @ 2:54 pm