Newspapers Consolidation is also claiming victims in the USA: journalistic quality and traditional publishers.
The Pulitzer publishing family has weathered many a storm. One episode from 1986 is particularly memorable: Back then, the grandson of the legendary founder, who also went by the name of Joseph Pulitzer, resolutely fended off a takeover attempt: "I will never trade my heritage for a pot of gold," said the heir at the time.But that is exactly what the owners of the newspaper company now seem to be planning to do, led by the grandson's widow, Emily Rauh Pulitzer. They want to explore "strategic alternatives", the management recently said, meaning they are prepared to sell. "Like other publishing families before them, the Pulitzers have realized that newspapers currently have a value that they will probably never have again," suspects John Morton from the consulting firm Morton Research. The fact is that the company has made decent profits in recent years and is now valued by analysts at around 1.5 billion dollars.
Huge return thanks to monopolyThe most serious interested party is reportedly the newspaper conglomerate Gannett, which publishes 101 local and regional daily newspapers as well as USA Today, the largest US newspaper (circulation 2.3 million). Pulitzer, with its flagship The St. Louis Post-Dispatch in Missouri and 94 smaller newspapers, fits well into its portfolio. However, this would mean that another independent publisher would fall into the hands of the group. "Of the 1500 daily newspapers in the USA, just 275 are still under the control of one family, and the trend is falling rapidly," says Thomas Kunkel, professor of journalism at the University of Maryland and publisher of the American Journalism Review. And as we know, large publishing houses have one thing in mind above all else: profit.
American newspaper groups have made unprecedented profits in recent decades. For industry leader Gannett, for example, a 25 percent return on sales is nothing unusual. Despite the ongoing advertising crisis and growing Internet competition, the national average is still 20 percent - twice as much as the average Fortune 500 company. This has been made possible by the synergy effects of newspaper mergers, but also by the fact that local competitors have been and continue to be systematically bought up. "If you have no competitors," says Jim Naurekas from the New York-based organization Fairness and Accuracy in Reporting, "you can raise advertising rates almost at will."
As a consequence, media critics like Naurekas are necessarily concerned about journalistic quality. "For those people who run news organizations in the US, the return on investment has long been more important than the question of what our reporting looks like." In his opinion, investors in media companies listed on the stock exchange are deliberately ensuring that the journalistic mission of providing information falls victim to Wall Street logic through "cost cutting" and cutbacks in foreign reporting, for example. "The probability that a publishing house will also take care of its social and democratic duties is much higher in family-run companies," says Kunkel.
The large US publishing houses that are still controlled by the founding families, such as the New York Times, Washington Post, Dow Jones/Wall Street Journal and the Seattle Times Company, are also the most credible and influential in the country in terms of publishing. Although they too have mostly floated their companies on the stock exchange under increasing pressure to make a profit, they protect themselves with a two-pronged ownership structure. Part of the shares - so-called A-shares - are issued to the public according to this model, which ensures a certain inflow of investment money. However, the majority of a second type of share, known as B shares, is held by the family, which secures the decisive voting rights. This has also been the case for the Pulitzers to date.
Arthur Sulzberger Jr., publisher of the New York Times, advises anyone who wants to enter the newspaper business as a family heir to think twice. Because the time and emotion involved is "simply cruel". "You have to have a strong passion for journalism," says Kunkel. "For younger generations, even in this industry, at some point it's just their grandfather's business. The likelihood that an entire family will still be willing to take on this challenge decreases as the years go by."
Father of the Nobel Prize in JournalismJoseph Pulitzer Senior emigrated from Hungary to the USA in 1864 and founded his newspaper company in 1876 in St. Louis, Missouri, where part of the German-speaking community was at home, which initially published the "Westliche Post". The St. Louis Post-Dispatch was added in the same year and the New York World in 1883. The latter became one of the first American Yellow Press organs at the end of the 19th century and competed with the Hearst publishing house.
legendary headline battles.
However, the scandal-ridden mother of all tabloids made its mark with investigative journalism during the lifetime of Pulitzer, who died in 1911. In his will, the newspaper pioneer left two million dollars for the founding of the now world-famous Columbia Journalism School in New York and awarded the Pulitzer Prize, which has long been considered a Nobel Prize for journalism, as a kind of reparation for his journalistic "sins of youth". Today, the company (2003 turnover: 423 million dollars; 2003 profit: 87 million dollars!) is in the hands of the Pulitzer heirs and comprises 12 daily newspapers and 82 weekly and niche publications. (oc)
Websites: http://www.pulitzerinc.com/
http://www.pulitzer.org
Selling out: More and more families are realizing that the value of their newspapers is currently at its peak and are drawing the consequences.
Gerti Schön