Any takers for the T&G? Speculation builds on who might buy the newspaper
John Henry told employees of the T&G that it's “important” for the paper to have local ownership.
When Boston Red Sox owner and billionaire John W. Henry bought The Boston Globe and Worcester's Telegram & Gazette in October, his intentions for the Boston newspaper were clear.
Henry, who made his fortune with his groundbreaking approach to trading futures, wrote in a Globe op-ed column in late October that he had a vested interest in seeing New England's newspaper of record succeed.
He likened ownership of the Globe to stewardship, and said he bought it “because I believe deeply in the future of this great community, and the Globe should play a vital role in determining that future.” Henry went on to call it “the eyes and ears of the region in some ways, the heartbeat in many others.”
For all the virtues he extolled of the Globe, and print journalism, Henry was silent about the T&G, Worcester's 147-year-old newspaper, which is, to Central Massachusetts, what the Globe is to all of New England. Henry purchased both newspapers from the New York Times Co. for a reported $70 million — a fraction of what the New York Times Co. paid for each newspaper: $295 million for the T&G in 2000 and $1.1 billion for the Globe in 1993.
There was rampant speculation about what Henry would do with the T&G, with rumors swirling that Gatehouse Media, the newspaper publisher that owns the MetroWest Daily News, among others, was close to buying it.
That was until Henry broke his silence during a visit to the T&G offices on Front Street in Worcester in late November. At that time, Henry said he would sell the newspaper, but that he prefers to take his time and find the “right” owner, the T&G reported.
“I think it's important for the T&G to be under local ownership,” Henry said. “I have been talking to local people who have expressed an interest. There's absolutely nothing imminent.”
But who would buy?
Henry declined comment for this story through a spokesman, and questions about his ability to find a local owner linger. T&G Publisher Bruce Gaultney, who announced in December that he will retire early this year following a health issue, could not be reached for comment, and a T&G spokeswoman declined comment.
It's not the first time local ownership has been seen as a prospect. The Times nearly sold the newspaper to Polar Beverages CEO Ralph D. Crowley Jr. in 2009, but that deal folded. Crowley could not be reached for comment regarding the planned sale, but a source close to Crowley said he's not interested in purchasing the T&G this time around.
Meanwhile, Michael P. Angelini, chairman of the Worcester Law Firm Bowditch & Dewey, said he's had discussions with a group of local stakeholders who would buy the T&G if it looked as if the newspaper would be in jeopardy of folding if Henry can't find a buyer. Angelini said the group's interest is “not primarily economic,” but more concerned with preserving journalism coverage for Central Massachusetts.
The difference, though, is that this group, whom Angelini did not identify, would only purchase the T&G as a last resort. Angelini said the group would not likely step in to prevent a large company from buying the newspaper.
Is it even plausible that the T&G would fold? Dan Kennedy, assistant professor of journalism at Northeastern University, doesn't think so. Kennedy said he “can't imagine anybody's going to fold it,” even if a local owner is hard to come by.
“I mean, why would you? Especially since you can buy it for next to nothing,” Kennedy said.
Kennedy's speculation on a potential sale price is based on the $70 million Henry paid for both the T&G and the Globe. Kennedy said it would seem one could buy the T&G “for a song,” relatively speaking. “In that respect, I'm not really sure why he couldn't find a local owner,” Kennedy said.
Then again, Kennedy thinks there could be something to the fact that Henry waited a month after buying the Globe and T&G to announce his plan to sell the Worcester operations. Kennedy speculated that Henry may have had a potential buyer in mind and that the deal fizzled, or that he came to realize that it would be more difficult to find a buyer than he'd thought.
Weighing possibilities
Despite Henry's claim that he wants to find a local buyer with an interest in the welfare of the region, there's still the possibility the T&G will end up in the hands of a large newspaper publisher. Speculation settles on Gatehouse, Kennedy said, because the Perinton, N.Y.-based company has been in acquisition mode in recent years, most recently acquiring the Cape Cod Times and The Standard-Times of New Bedford through its majority owner, Fortress Investment Group, even as it was going through Chapter 11 bankruptcy protection this fall. It emerged from Chapter 11 in late November, not long after it announced layoffs at several new properties, including the two Massachusetts dailies.
But, as Kennedy pointed out, the T&G, with a daily print circulation of about 75,000, is quite larger than the newspapers Gatehouse is usually interested in. The company owns about 100 Massachusetts newspapers, most of them published weekly.
A spokesman for Gatehouse did not return multiple phone calls seeking comment for this article.
Kennedy said a “much more interesting” corporate buyer, in terms of offering an innovative approach to community journalism, would be New York-based Digital First Media, the corporate parent of Media News Group, which owns the Sentinel & Enterprise in Fitchburg.
The S&E and T&G have significant coverage overlap in North Central Massachusetts, and while Kennedy thinks Digital First would do a better job of preserving quality at the T&G than Gatehouse, it seems unlikely that Digital First, which just announced the merger of its largest companies, Media News Group and 21st Century Media, would be interested.
A source familiar with the organization said Digital First would be unlikely to pursue a T&G purchase, as it is not in acquisition mode, and the T&G's strong unions would be seen as a disadvantage to its ownership.
Providence Journal also on market
As the proposed T&G sale plays out, a neighbor to the southeast is also facing a possible change in ownership. A.H. Belo Corp., the Texas-based owner of the Providence Journal, announced in December it is exploring the sale of the 184-year-old newspaper. Belo said it would look for an appropriate buyer, according to the Journal, but the company did not stress a preference for local ownership.
John Hill, a Providence Journal reporter and the president of the Providence Newspaper Guild — a union that also includes employees of the T&G — said it's an interesting time for a newspaper to be up for sale. Hill pointed out that more experienced publishers, confounded by how to make newspapers profitable in the digital age, are leaving the business. And they're making way for industry outsiders, like John Henry, who bring with them a fresh perspective. Other high-profile examples include Amazon founder Jeff Bezos, who bought the Washington Post in the fall, and billionaire Warren Buffet, who owns 28 newspapers through his company, Berkshire Hathaway.
“All we need is for one of them to be successful, because then the rest of us can rip that guy off,” Hill quipped.
Hill said it's too early to speculate who might buy the Providence Journal, but he said there might be some logic to packaging the T&G and the Journal in a sale, given the overlap they share along the Route 146 corridor. Hill said there could also be synergies in advertising and printing.
Either way, Hill hopes a new owner will view the paper “as a civic asset,” just as Henry views the Globe. n
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