The Vulture Funds Circling Local News: What It Means for Democracy and Your Community
More than 2,500 newspapers have vanished in the United States since 2005. This isn’t a slow decline due to the internet; it’s a systematic dismantling, and as the documentary Stripped for Parts: American Journalism on the Brink reveals, a key driver is the rise of predatory investment firms. These aren’t simply businesses failing; they’re being deliberately stripped for parts by companies like Alden Global Capital, with profound consequences for civic engagement and the very fabric of our communities.
The Rise of ‘Vulture Capitalism’ in Local Media
Alden Global Capital, dubbed the “grandfather of vulture capitalism” by those investigating its practices, operates on a simple, ruthless model: acquire distressed newspapers, slash costs – primarily through massive layoffs and selling off real estate – and extract profit. As Rick Goldsmith, director of Stripped for Parts, explains, this isn’t about saving journalism; it’s about maximizing short-term financial gain. The documentary highlights instances like the sale of the New York Daily News’ printing plant and offices for $90 million, even while refusing to negotiate with union members. This pattern isn’t isolated; it’s a deliberate strategy of distressed asset investing, prioritizing profit over public service.
Beyond Layoffs: The Real Estate Play
The financial incentives extend beyond simply cutting payroll. Hedge funds often see more value in the property a newspaper occupies than in the journalism it produces. Downtown real estate, particularly in growing cities, can be incredibly lucrative. Selling off newsrooms and printing facilities provides a significant immediate return, even as it cripples the newspaper’s ability to function. This is a key component of the “vulture” approach – extracting value from a dying asset, regardless of the societal cost.
The Democratic Cost of a Vanishing Press
The erosion of local news isn’t just an economic issue; it’s a democratic crisis. Research consistently demonstrates a strong correlation between the decline of local newspapers and decreased civic engagement. Penelope Abernathy, featured in the documentary, points to studies showing that when a community loses its newspaper, voter participation declines and corruption increases. Without local journalists holding power accountable, misinformation flourishes, and communities become increasingly uninformed. This creates a dangerous vacuum, ripe for manipulation and eroding trust in institutions.
The Link Between Local News and Informed Citizens
A well-informed citizenry is the cornerstone of a functioning democracy. Local newspapers provide crucial coverage of city council meetings, school board decisions, and local elections – information that directly impacts residents’ lives. When these sources disappear, citizens are less likely to be engaged, less likely to hold their elected officials accountable, and more vulnerable to misinformation. The consequences extend beyond politics, impacting everything from public health to economic development.
What’s Next? Emerging Models and Potential Solutions
While the situation is dire, it’s not hopeless. The documentary highlights a growing resistance, exemplified by the revolt at The Denver Post, where journalists risked their careers to expose Alden’s destructive practices. More importantly, innovative models are emerging to fill the void left by traditional newspapers. Non-profit news organizations, digital-first local news sites, and partnerships between public radio and local media are gaining traction. These initiatives often rely on community funding and a commitment to public service, rather than profit maximization.
The Role of Philanthropy and Community Support
Sustaining these new models requires a shift in how we value and fund local journalism. Philanthropic organizations are increasingly recognizing the importance of supporting local news, providing grants and resources to help these initiatives thrive. However, individual community support is equally crucial. Subscribing to local news sources, donating to non-profit news organizations, and actively engaging with local journalism are all vital steps in ensuring its survival. Consider supporting organizations like the Report for America, which places journalists in underserved communities.
The fight to save local journalism is a fight to protect our democracy. The predatory practices of firms like Alden Global Capital represent a clear and present danger to informed citizenship and accountable governance. The future of local news isn’t predetermined; it depends on our collective willingness to recognize its value and invest in its survival. What steps will you take to support local journalism in your community?
