The Reports of Its Death Are Greatly Anticipated
POTTSTOWN, PA – The press releases have been splattered all over the web – “Alden Global Capital Purchases 100% of Journal Register Company”.
As many of our well-read and savvy readers already know, Journal Register Company (JRC) is the owner of The Pottstown Fishwrap, the poorest of poor excuses of what is known as “dinosaur media” (outdated media that is soon to be extinct). Of the eight Philadelphia-area publications owned by JRC, The Fishwrap ranks 4th in circulation – right smack in the middle. Yes…it’s hard to imagine that there are folks who actually pay to read that trash. As it’s been said in the past…there’s a sucker born every minute.
So…now that JRC has been acquired by Alden Global Capital…what will happen next?
It’s worth noting here that in addition to its ownership of JRC, New York-based Alden has stakes in several other newspaper publishers, including Freedom Communications Inc., MediaNews Group and Philadelphia Media Network (The Philadelphia Inquirer and Philadelphia Daily News).
While vanilla press releases never contain any relevant information, the fact is that when a hedge fund firm purchases a newspaper company they are only interested in one thing…earning a strong return on its investment….and they don’t give a hoot about the future of journalism.
So while John Paton, the CEO of JRC, likes to spew his kittens and rainbow doublespeak about how everything is going to be just fine…that should be a warning sign to every obsolete Fishwrap employee that layoffs and consolidations are on the immediate horizon.
Which is a good thing…because with the consolidation and closure of The Fishwrap, it will mean the elimination of its print edition….which will result in the final nail in the coffin of antiquated political hacks like Pottstown School Board member Thomas Hylton and his personal tax-bloated paid advertising screeds masquerading as legitimate news commentary.
So…we look forward to and embrace the upcoming changes. Randall Smith, Alden’s CEO, is a much shrewder and more sophisticated financial engineer than John Paton…and he doesn’t care at all about being digitally first…he only cares about making a profit for his investors.
Pottstown just may be liberated from the stranglehold of the ethically-challenged Fishwrap sooner than we think.
Whether you think it’s a good thing or not (and, by the tone of today’s piece, I know you won’t), you may be waiting a significant while for anticipation fulfilled.
As savvy journalists yourselves, you surely understand that circulation is the least of three measures of a newspaper’s success. The first, and most important measure (not only for newspapers but for ANY enterprise) is profitability. The second is overall revenue, consisting of both advertising and circulation sales. The circulation number ranks a mildly distant third.
I will bet a bagful of the new Jake’s Wayback Burgers, made by my friends the Hendershots in their soon-to-be-opened franchise at Upland Square, that you would be surprised – shocked, even – to learn where Pottstown’s daily newspaper (I’m sorry, guys; I just hate “The Fishwrap”) ranks in the first two categories among its JRC Philadelphia publishing brethren.
If you read the current market analysis of Alden’s financial play, the speculation focuses not on consolidation and closure but on following the now proven Paxton strategy of lowering costs by spreading content from one publication, modified or as-is, across several others.
Capsule message: From bankruptcy to $41 million is nothing to sneeze at. Alden thinks Paxton’s got it right, his kittens and rainbows notwithstanding.
As I noted at the outset, I understand why you and Save Pottstown readers wouldn’t relish this observation. But no matter how earnestly you might hope for it (and as a reader myself since shortly after you launched, I’m well versed in all reasons why you do), I suggest The Mercury will go neither go quickly or quietly.
Regards,
Joe Zlomek, Managing Editor
The Pottstown Post
In terms of full disclosure, I am neither a current nor past employee of The Fishwrap (and I like that term). I know that Mr. Zlomek is a former employee.
I’ve worked for several Fortune 500 companies in various capacities throughout my professional career. I totally agree with you SP. I’ve worked at companies that have been bought up and sold off and have seen the loss of many good former co-workers.
I’m not a newspaper person (thank goodness!) but I think the new owner of JRC will consolidate and close properties. It’s not a stretch to think that will happen to The Fishwrap. Just look at Corporate America today. Billionaires (like Mr. Smith) are gobbling up companies and spitting out the bones. It’s just a matter of time.
@Blair S. In terms of full disclosure, “Mr. Zlomek” (you’re gracious, and I thank you) was a former publisher and chief operating officer of the Oneida (NY) Daily Dispatch, the Fall River (MA) Herald News, the Terre Haute (IN) Tribune-Star, the now-closed Ocean County Observer in Toms River NJ, and The Pottstown (PA) Mercury. All were owned by Ingersoll Publications Inc.; during his tenure there, The Mercury later became part of the Goodson Newspaper Group. His employment at The Mercury (or whatever one prefers to call it) ended in mid-1990 … 21 years ago. He has never been an employee of Journal Register Company.
And Blair, I agree with much of your logic. I’m not denying there may be other employees or properties falling by the wayside as a result of this purchase. I think it’s important to recognize, though, that JRC before Paton closed a whole slew of properties that ultimately helped make it appealing as an acquisition. What’s left is what’s still making a profit.
I even think SP’s suggestion that the print publication will end, someday, is accurate. Someday, however, can be a long way away. Why? Because the print publication’s base is rooted in the 55+ age bracket that is accustomed (unlike those who are younger) to reading news over breakfast from a platform other than a pixel-primed screen. That base will be around for another 10-15 years, at least.
Your knowledge of big companies shows, Blair, and you make worthwhile points. I apologize if SP readers were, unlike you, unfamiliar with my history here and elsewhere; thanks for calling me on it.
Regards,
Joe Zlomek, Managing Editor
The Pottstown Post
I have to agree with Mr. Zlomek that the print version of The Mercury will not be going away any time soon. But what I WOULD wish to see happen, and it probably won’t, is a change of managment. What The Mercury needs is a Managing Editor who is unbiased, either politically or generally, has no personal “favorites” and who is willing to allow his or her reporters to actually report the truth without spin. Nancy March does not fall into this category. It’s a shame, really. The Mercury was a premier news reporting paper back in the day (I belong in that Over 55 crowd, Mr Zlomek) and was actually pretty good up until the Journal Register took it over and most ESPECIALLY since Ms March took over. Well, one can only hope things will change, even though it will, very likely, not be the case.