Two more gone from Press-Telegram

Long Beach Press-Telegram city editor John Futch and sports writer Doug Krikorian received layoff notices last week as part of the consolidation efforts between that paper and the Daily Breeze/Daily News. Krikorian was offered a freelance slot but declined.

Digital First Media now a MediaNews and Journal Register mashup

Digital First Media's inhalation of the MediaNews Group and the Journal Register Company has resulted in a new management team, with executives from the two newspaper companies being reassigned as Digital First officers under CEO John Paton.

Journal Register CFO Jeff Bairstow was named president of Digital First Media; Jim Brady becomes editor in chief, having previously served as the Journal Register's editor-in-chief, and David Butler, who headed MediaNews Group's California papers, is now executive editor of Digital First.

The three members of the Journal Register's journalism advisory board also become the advisory board for Digital First. They are well known media critics Jay Rosen of New York University's journalism program, CUNY professor and BuzzMachine blogger Jeff Jarvis, and Emily Bell of Columbia University's Tow Center for Digital Journalism.

Here's the memo announcing the changes:

Digital First Media, which jointly manages MediaNews Group and Journal Register Company, announced today the appointments of key executives in sales, content and operational positions.

“With today’s announcement we are putting into place the very best team to lead both MediaNews Group and Journal Register Company in implementing our Digital First strategy,” said John Paton, CEO of Digital First Media. “I am excited about the depth and breadth of talent we have assembled from both companies as we continue to work to serve our communities and growing audience. Like all legacy media companies making this important transition to Digital, we have a long way to go to fulfill that promise. Today marks an important first step.”

Jeff Bairstow was named President of Digital First Media. Mr. Bairstow, joined Journal Register Company in 2010 and was, until recently, Journal Register Company’s Chief Financial Officer. In his new role, Mr. Bairstow – who was also named President of MediaNews Group – will oversee daily operations across Journal Register Company and MediaNews Group.

“We have a tremendous opportunity to leverage the knowledge of these two companies – both in traditional journalism and digital product development – into a unified leadership team that will drive the necessary digital transformation to power our growth,” said Mr. Bairstow.

Ron Mayo was named Chief Financial Officer of Digital First Media. Mr. Mayo will retain his duties as CFO of MediaNews Group in addition to his new role.
Named as Executive Vice Presidents of Digital First Media were:

-       Jerry Grilly, who will continue to serve as President and Chief Executive Officer of The Denver Post; Steve Rossi, who is responsible for the company’s California operations; and Tom Wiley, who has served as a group publisher for Journal Register Company.

-       Arturo Duran, who joined Journal Register Company in 2010 as Executive Vice President for Digital, was named Chief Digital Officer.

-       Kirk MacDonald, who has served as The Denver Post’s Executive Vice President of Advertising, Marketing and Digital Sales since July 2009, was named Executive Vice President of Sales. Adam Burnham, who has served as Journal Register Company’s Vice President of Local Sales, was named Senior Vice President of Local Digital Sales.

-       William Higginson, who has worked for Journal Register Company since its founding and most recently served as President, was named Executive Vice President of Operations.

Jim Brady, who was named Journal Register Company’s Editor-in-Chief earlier this year, was named Editor-in-Chief of Digital First Media. David J. Butler, who has served as Vice President of News for MediaNews Group and Editor of the San Jose Mercury News, was named Executive Editor.

Named as Vice Presidents of Digital First Media were: Jonathan Cooper, who recently served as Vice President of Content for Journal Register Company; Sara Glines, who recently served as Vice President of Field Operations for MediaNews Group; and Joe Miller, who has served as Journal Register Company’s Vice President for Real Estate, was named Vice President for Real Estate.

Bob Mason, who has served as Journal Register Company’s Chief Technology Officer since 2010, has been named Chief Technology Officer for Digital First Media.
Robert Monteleone, who has served Chief Human Resources Officer for Journal Register Company, was named Chief Human Resources Officer for Digital First Media.

Along with the management appointments, Mr. Paton also announced appointments to the Digital First Media Advisory Board. Named to the Advisory Board were: 

-      Jeff Jarvis, Associate Professor and Director of the Interactive Journalism program and the new business models for news project at the City University of New York’s Graduate School of Journalism.

-     Emily Bell, Director of the Tow Center for Digital Journalism at Columbia University. 

-      Jay Rosen, Ph.D, professor and former chair of the journalism program at New York University. 

Mr. Jarvis, Ms. Bell and Mr. Rosen had previously served as members of Journal Register Company’s Advisory Board.

Buyouts in Denver

The Denver Post wants at least 20 newsroom staffers to take buyouts as a way to cut costs. This would represent 8 percent of newsroom employees. If the plan falls short, layoffs could follow.

Four for the weekend

1. Borzou Daragahi, who is leaving the Los Angeles Times for the Financial Times, had this to say about a proposed bonus package for Tribune Co. bosses: Tribune 2 give $42.5 million bonuses to 640 managers that could be used 2 hire 640 journos http://bit.ly/q2GLT4 #media

2. Speaking of the LA Times: No more vacation accrual for the rest of the year, LA Observed reports.

3. Steve Lambert, editor and publisher of the San Gabriel Valley Newspaper Group, has stepped down, according to several sources. Lambert previously worked at the San Bernardino Sun, which is part of the same MediaNews Group chain of papers.

4. The LA Times laid off ten pressroom employees today. Pressmens blog

From BANG to LANG?

MediaNews Group's decision to merge its 12 Bay Area newspapers into three has led to speculation that the company could do something similar with its nine Southern California papers, collectively known as the Los Angeles Newspaper Group.

I can only speculate myself, but I see the potential for structural mimicry if MediaNews succeeds in its stalled bid to buy the Orange County Register.

With the Register, LANG would look more like the Bay Area News Group did before yesterday's merger, with the Register playing the role of the Mercury News: a large paper with a statewide brand in a relatively affluent county that could serve as an editorial center of gravity for a larger region. The LANG papers already exist as three clusters of three, a structure that could be collapsed into two or three newspapers.

However, MediaNews would have to have a reason to further consolidate LANG. One obvious reason would be a desire to cut staff to lower costs - the BANG merger led to 120 layoffs. I might be wrong, but I think LANG was already leaner than BANG in terms of staff and so might not be able to stand such a huge "streamlining." (Indeed, the Register itself might be more vulnerable if cuts are a priority.)

Another reason could be that MediaNews actually believes the BANG model is more efficient and effective: Fewer brand names, a more uniform editorial approach, better positioning to do mobile, etc.

One reason MediaNews might leave LANG alone, even after a Register deal, would be to give it time to evaluate the Bay Area merger to see what works and what doesn't. Undoubtedly, there will be backlash from readers and circulation will probably drop (though the consolidation will mask some of this). But this feels like a post-print production plan and so BANG might be the guinea pig that gets isolated and studied until it recovers - or doesn't.

BANG goes boom

MediaNews Group announced today that its Bay Area News Group will undergo a major consolidation that will merge 12 newspapers into three and eliminate 120 jobs - 48 of the positions are in the newsroom, KQED reports. When all is finished, BANG will consist of the Mercury News, The Times and East Bay Tribune.

BANG is using words like "streamlining" and "rebranding" to describe the merging and cutting. The actions should not come as a surprise given the decision MediaNews made in June to consolidate editorial control of the papers.

Here's part of the story (which appears to have been written by an ad agency) published on the soon-to-be retooled Contra Costa Times website:

Bay Area News Group (BANG) today announced a rebranding of many of its newspapers to better reflect the scope of its regional coverage. The changes - which include a streamlining of its print operations - primarily involve its East Bay newspapers, and will result in greater emphasis on providing high-impact, regional and local coverage. 

-snip- 

The streamlining of its print operations will also result in a reduction of approximately 120 jobs - primarily in the production and editorial divisions - out of a local workforce of 1,500 employees.

Management at MediaNews will argue, as it does in the story, that this consolidation is about much more than job cuts; that its a necessary step to position the BANG as a competitive news outlet in the rough and tumble 21st century. And maybe this smaller knot of news power will get the job done. But we cannot overlook the fact that this recently bankrupt company is trying to raise $350 million to buy newspapers from Freedom Communications. And we know editorial power wanes when you eliminate four dozen news staffers.

Or as the San Francisco Chronicles' Carla Marinucci tweeted: “Corporate PR spin: Release from CA’s Bay Area News Group, announcing decimation of its newspaper/staff chain tday, calls it ‘rebranding.’” (found via Romenesko)

Stalled negotiations in bid for OC Register stall again

Europe is always doing something. And this time, that something is being blamed for delaying the sale of the Orange County Register.

According to the Wall Street Journal, MediaNews Group's $350 million bid to buy the Register and the rest of Freedom Communications's newspaper holdings stalled because of instability in the markets caused by the European debt crisis.

Talks stalled earlier this year over price, but apparently MediaNews, through a number of cost-cutting actions, offered enough money to get Freedom on board. The Journal says talks might resume in a few weeks, if the markets calm down a bit.

MediaNews extends paywalls

MediaNews Group today announced that 23 of its paper will go behind digital paywalls - at least part way. The affected papers include two in Southern California, the Whittier Daily News and the Redlands Daily Facts. Print subscribers will be charged $1.99 a month or $19.99 a year for full access; digital-only subscriptions cost $5.99 a month or $59.99 a year.

Under the plan, online home pages, obits and classified ads will remain free. Business, feature, and sport stories go behind the walls. This is an extension of the experiment MediaNews started last year in Chico, California and York, Pennsylvania.

My sense is the papers will depend on prep sports to drive print subscribers to pay a little extra. The papers are also some of the smallest in the MediaNews universe.

Here's how MediaNews is selling the paywall:

Our new digital business model reflects the high value we place on professional journalism and helps us to fund our local reporting at a time of unprecedented change in the way people use and consume news and information.

LA Times cutbacks, papers for sale, and other speculation

I'm told a memo was circulated this weekend among Los Angeles Times staffers asking for volunteers to take buyouts as a way to lessen or avoid layoffs at the paper.

The Chicago Tribune, the Times's sister paper, laid off 20 people on Friday, "many of them" from the newsroom, WBEZ reported.

Times employees are in a state of anxiety, as LA Observed pointed out last week, as rumors of layoffs swirl amid continued efforts by owner Tribune Co. to crawl out of bankruptcy. Investors are impatient and layoffs are a quick way to improve the financial picture in the short term.

So, is this about boosting profits and satisfying debt holders? Or should we believe the Wall Street Journal's speculation that the Times could be being readied for sale - with a smaller payroll making for a more attractive sales price?

And since we're speculating... Could the Tribune be raising cash as a way to up its bid for the Orange County Register? The Register's publisher announced Friday that he'll at the end of September, which would indicate a deal is in the works. MediaNews Group had emerged as the top bidder for the paper, but negotiations broke down last month. This was followed by a flurry of layoffs in MediaNews's Southern California newspapers - a sign the chain is looking to up its ante.

Sun newsroom says 'no' to union

I'm told newsroom employees at the San Bernardino Sun have rejected an effort to form a union at the MediaNews Group-owned newspaper. The vote was 12 to 2 against.

When the union election was set, 17 people were eligible to cast ballots. I'm told two people have since left and one ballot was challenged - an action that won't change the outcome.

Layoffs and leavings at the Daily News

The Los Angeles Daily News newsroom got a little smaller this week. Online content producer Cliff Redding and web producer/designer Tom Gapen received layoff notices. A third person, from circulation, also got a pink slip. The latter layoff was mentioned last week.

Additionally, the city editor of the Los Angeles Daily News, John Miller, is leaving the paper to teach high school English in Kuwait, according to a memo obtained by LA Observed.

(Corrections: Original post had Mr. Redding's and Mr. Gapen's titles wrong.)

Long Beach Press-Telegram update

Three newsroom employees at the Long Beach Press-Telegram lost jobs this week as their departments were absorbed into the Daily Breeze. According to the Long Beach Post, sports columnist Frank Burlison and photographers Steven Georges and Diandra Jay received pink slips. (This post clarifies an earlier post.)

One big BANG

MediaNews Group owns two clusters of newspapers in California: the Los Angeles Newspaper Group (LANG) and the Bay Area News Group (BANG). In the past decade, mergers and consolidation have turned the individual papers into something of a news blob, with each newsroom producing its own pages in semi-autonomous fashion, but often sharing substantial resources, including inside news and business pages, copy editors, photo, and advertising.

The Bay Area News Group, which owns newspapers in the East Bay, Silicon Valley and San Jose, has finally shed the pretension of autonomy and has named itself a single editorial entity.

According to a memo obtained by blogger Richard Brenneman, the BANG papers, led by editor Dave Butler, will now share a single managing editor for print, Bert Robinson, and a single managing for online, breaking news and photography, Randall Keith. Robinson and Keith served in similar capacities at the BANG flagship, the San Jose Mercury News.

Sports, photo and business will similarly fall under a single BANG editor.

This will mean more sharing of content between papers, though it's not clear if further staff cuts will follow. The papers, which include the Oakland Tribune and Contra Costa Times, will retain their editorial boards to run opinion and commentary.

From the memo:

Beginning today, we are taking another significant step in streamlining our organization to maximize our operating efficiency. Continuing the process that began with the creation of the Bay Area News Group, the news divisions of all Bay Area News Group newspapers will now operate under a single, common management team under the direction of Dave Butler, editor of the Mercury News and vice president for news for MediaNews Group. This move follows similar consolidations in our other divisions. 

Dave’s appointment and the announcement of the first official BANG-wide news management team are logical next steps in our efforts to make full use of the breadth and depth of the entire group. While a less-formal arrangement has been in place for some time, our recently negotiated labor agreements recognize complete consolidation. 

This reorganization will have an immediate impact on top management, and it’s with regret that we also announce that [BANG Executive Editor] Kevin Keane and [BANG-Easy Bay Managing Editor] Pete Wevurski are leaving the company today. Please join with me in thanking them for their years of service and wishing them well in their new adventures.

The rest of the memo is here.

Update on layoffs in the San Gabriel Valley

Here's an update on the layoffs at the San Gabriel Valley Newspaper Group: Seven people total lost their jobs: two of them were on the business side, five from the newsroom. The affected newsroom employees are Hector Gonzalez, Eric Reed, Karen Lee, Coye Sloan and Steve Wytucki.

Add: Gonzalez was the city editor at the Pasadena Star-News, one of the three papers in the SGVN chain. His position will not be filled. Metro Editor Frank Girardot will continue as the primary editor for the paper.

Layoffs in San Gabriel Valley

At least five, and as many as seven, newsroom employees have lost their jobs in the San Gabriel Valley Newspaper Group. Layoff notices went to three from the copy desk, one photographer, and the city editor at the Pasadena Star-News.

The layoffs come as the papers' owner, Denver-based MediaNews Group, is being asked to up its offer for the Orange County Register.

The newspaper group includes the Star-News, San Gabriel Valley Tribune and Whittier Daily News.

MediaNews acquires another newspaper - no, not that one

MediaNews Group is still in the merger business. The Denver-based newspaper chain has acquired The Gardner News, a family owned newspaper that circulates in central Massachusetts and southern New Hampshire. Terms of the deal are confidential.

MediaNews is the leading contender to buy the Orange County Register, though talks between MediaNews and Register-owner Freedom Communications recently stalled over price.

Merger talks between MediaNews and OC Register break down

A disagreement over price has stalled merger talks between MediaNews Group and the Orange County Register. MediaNews, which owns nine newspapers in Southern California, had put together a financed deal to buy the Orange County newspaper, but Register owner Freedom Communications wants a better offer for its flagship property, the Wall Street Journal reports.

Freedom owns eight television stations and more than 100 daily and weekly papers, according to the Journal. It's probable MediaNews only wants the newspapers - and possibly only the Register - and that could mean Freedom wants more time to negotiate better deals for the remainder of its assets.

It's also possible bids from Platinum Equity, which owns the San Diego Union-Tribune, or Los Angeles Times-owner Tribune Co., might have given Freedom a new sense of its value. However, regulatory hurdles stand in the way of any merger with these companies.

From the Journal:

A March deadline for bids on Freedom's assets came and went before the unsuccessful discussions with MediaNews. Freedom is now in talks with other possible buyers, the people said. 

-snip- 

People familiar with Freedom's finances said the company's newspapers could fetch about $350 million, or roughly four times their earnings before interest, taxes, depreciation and amortization. Freedom's television stations could be worth about $400 million, or about eight times such earnings, these people said. 

Those figures fail to take into account corporate overhead expenses, and pension and tax liabilities, said some people familiar with the negotiations.

Date set for San Bernardino Sun union election

Newsroom employees at the San Bernardino Sun will decide on July 7 whether to establish a union. The National Labor Relations Board has identified 17 employees as eligible to vote in the election. Senior Editor Kim Guimarin sent two memos (here and here) outlining the process and making clear that management does not want the newsroom to unionize. From the memo:

As we have shared, during the next five weeks there will be a series of informational meetings during which you will learn more about the process, i.e., voting procedures, union representation, and the union itself, the collective bargaining process, and why it is in your best interest as well as the Sun's to cast a ballot on June 7 and vote NO.

The Sun is owned by the Los Angeles Newspaper Group, a division of Denver-based MediaNews Group.

Shop talk at the San Bernardino Sun

Reporters have begun organizing a union effort at the San Bernardino Sun, two sources tell me. This means contacting union representatives and circulating cards for an election. I don't know how far along they've gotten, but LANG, the paper's owner, has taken notice. At least two executives talked to management at the Inland Valley Daily Bulletin, the Sun's sister paper, about how a bad union would be. More when I hear it...

More furloughs for LANG

LANG employees will have to endure yet another round of furloughs. Fred Hamilton, CEO and publisher of the nine-newspaper chain, sent a memo today telling employees that they must take 5 unpaid furlough days between May 16 and July 2. LANGers will also stop accruing vacation between these dates.

For Hamilton to hastily order furloughs to be taken over such a short period of time indicates just how much pressure the company must be under to boost its bottom line before the end of the fiscal year (June 30). Indeed, Hamilton says in the same memo that LANG employees will be able to take an additional 5 paid holidays in the next fiscal year to make up for the short-term pain.

This leads me to wonder if this dramatic, last-minute action is related to a possible deal to buy the Orange County Register. LANG's parent company, MediaNews Group, is in a bidding war with the Tribune Co., owner of the Los Angeles Times, to buy the Register.

It's also likely the chain is simply trying avoid further layoffs, given the revenue demands of some of its investor owners, who agreed to swallow $765 million of debt as MediaNews emerged from bankruptcy last year. The furloughs and vacation freeze come a week after layoffs at the Long Beach Press-Telegram. Hamilton said the latest actions should keep future pink slips to a trickle:

...today's action does not preclude other cost reduction measures including and not limited to reductions-in-force. At this time such actions will likely be limited and will continue to be an expense reduction alternative until the economy and our performance measurably improves.

As expressed in the past, we regret any inconvenience this action may cause you but until our financial challenges are clearly behind us, such actions are necessary.

The full memo is here.

(This post was edited)