Not having endured an economic crisis as dour as the recession ravaging the country (and, no, neither 1973-74 or 1980-82 comes close, regardless of what the government numbers say), I've been taking every prudent step necessary to prepare for the worst. Credit cards were scissored into tiny little pieces months ago. I've yet to spend the money on gas or a hotel stay to visit my oldest son at UC Davis. We've taken our youngest out of after-school care and are leaving her to care for herself at home in the afternoon. And vacation time has been used not as an opportunity to relax, but as a bulwark against a possible job loss; I've been saving it up and have just about maxed out at 8 weeks. But it still feels like a losing battle, even though I'm far more fortunate than the millions of Americans who have lost their job the past two years.
The most recent bit of bad news came today, when my employer informed me that the pay cuts (and elimination of 401(k) matches and the spike in health insurance premiums) announced in January would continue. Indefinitely. The memo didn't quite use those terms, but that was the message, nonetheless.
The cost-saving measures "will be extended pending the sale of the Union-Tribune (expected to be finalized in April) and the new ownership’s evaluation of the cost structure in the current business environment," it read.
So now I'm looking at more ways to cut. To prepare for what sometimes seems like the inevitable.
Thursday, March 26, 2009
Wednesday, March 25, 2009
Platinum is in the building. Or so friends tell me, which is to be expected, since the company will officially own The U-T as early as early April. They dress sharp, ask a lot of good questions and are expected to be around for at least a few days, sources say.
Our metro columnist is already getting off on the right foot.
Meanwhile, everyone I know is wondering if they'll still have a job in a few weeks. Not that the uncertainty has become an albatross. If today's paper was any indication, (quality writing, more than a few exclusives, impressive layout, and a whole lotta color ads!) we remain a pretty damn good publication, easily the best source of news in the region.
In other news today, San Diego News Network has officially launched its new Web site, showing once again that not everyone believes that journalism is a dying industry. It's clean and easy to navigate. Let's hope it doesn't become as obsessed as some publications are (hello, San Diego Reader? If the Union-Tribune went out of business, would Don Bauder have anything left to write about?) with relentless potshots at the U-T.
Our metro columnist is already getting off on the right foot.
Meanwhile, everyone I know is wondering if they'll still have a job in a few weeks. Not that the uncertainty has become an albatross. If today's paper was any indication, (quality writing, more than a few exclusives, impressive layout, and a whole lotta color ads!) we remain a pretty damn good publication, easily the best source of news in the region.
In other news today, San Diego News Network has officially launched its new Web site, showing once again that not everyone believes that journalism is a dying industry. It's clean and easy to navigate. Let's hope it doesn't become as obsessed as some publications are (hello, San Diego Reader? If the Union-Tribune went out of business, would Don Bauder have anything left to write about?) with relentless potshots at the U-T.
Thursday, March 19, 2009
Moron that later
Iphones. The blogosphere. Twitter. All have been blamed for the transformation of the newspaper industry into something more suitable for a museum.
Here's another reason: We're living in a country of morons.
A longtime friend of mine, Gordon Murray - has dedicated his life to journalism for more than 30 years, was playing poker with some neighbors the other night when a young, allegedly attractive woman walked in. (This is a true story, so don't expect a punch line.) When she found out Gordon worked at The San Diego Union-Tribune, she quickly boasted that she had no need for newspapers. No need for TV news. No need for television. No need for National Public Radio. When more than a few people pointed out that she might want to rethink her strategy of becoming informed, she was quick with a retort:
"I'm smart. I'm pretty. And that's all that matters!"
Speaking of morons, reading the various Internet postings about the UT's pending sale to Platinum Equity is further proof that any idiot can become a blogger. For example, one posting that has been getting a lot of attention - even though it was based on nothing but a few beers and some good heroin - suggests the paper sold for less than $15 million. This poor bloke obviously has no clue that the UT's headquarters alone - situated on prime property in a premier location in one of the world's most beautiful cities - is worth several times more than that, recession be damned.
For those who missed it, by the way, here is what was released yesterday:
Platinum Equity to Acquire The San Diego Union-Tribune from The Copley Press, Inc.
SAN DIEGO and BEVERLY HILLS, CA – March 18, 2009 – The Copley Press, Inc. and Platinum Equity announced today that they have signed a definitive agreement under which an affiliate of Platinum will acquire San Diego’s leading daily newspaper, The San Diego Union-Tribune.
The transaction, which is expected to be completed during the second quarter, culminates a sales process that began in July 2008 when Copley announced it had engaged an adviser to explore strategic alternatives for the newspaper.
Harold W. Fuson, Jr., executive vice president for Copley, said that Platinum Equity emerged from that process as the bidder best equipped to ensure that the Union-Tribune – which last changed owners in 1928 – maintains its position as one of San Diego’s leading community institutions.
“This is a vital business with a long tradition of public service and a preeminent position in one of America’s finest media markets,” Mr. Fuson said. “At this important juncture, we believe that Platinum Equity is the right partner for the Union-Tribune, its employees and the San Diego community.”
Platinum is a private equity firm that specializes in acquiring businesses facing complex operational challenges in declining or transitioning markets. Louis Samson, the Platinum Equity principal leading the acquisition, called the Union-Tribune “a good fit for Platinum” and its operations-focused approach.
“We have a long history of creating value by helping established companies navigate difficult market transitions,” Mr. Samson said. “The Union-Tribune is more than a business, it’s an institution in San Diego. But it faces enormous challenge in a period of tremendous upheaval for the newspaper industry. We will bring a strong operational focus that helps ensure the Union-Tribune not only survives in this market, but thrives.”
The Platinum team includes David H. Black, an experienced newspaper owner and operator whose holdings include more than 150 newspapers and websites in the United States and Canada.
“The Union-Tribune is a premier media property in an outstanding market,” Mr. Black said. “We are extremely excited about partnering with the management team and dedicated employees of the Union-Tribune, and building this franchise for the future.”
Financial terms of the transaction were not disclosed. Evercore Partners and Munger, Tolles & Olson LLP advised Copley on the transaction. Platinum Equity was advised by Hughes Hubbard & Reed and Alvarez & Marsal’s Transaction Advisory Group.
About Platinum Equity
Platinum Equity (www.platinumequity.com) is a global M&A&O® firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed nearly 100 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition.
Here's another reason: We're living in a country of morons.
A longtime friend of mine, Gordon Murray - has dedicated his life to journalism for more than 30 years, was playing poker with some neighbors the other night when a young, allegedly attractive woman walked in. (This is a true story, so don't expect a punch line.) When she found out Gordon worked at The San Diego Union-Tribune, she quickly boasted that she had no need for newspapers. No need for TV news. No need for television. No need for National Public Radio. When more than a few people pointed out that she might want to rethink her strategy of becoming informed, she was quick with a retort:
"I'm smart. I'm pretty. And that's all that matters!"
Speaking of morons, reading the various Internet postings about the UT's pending sale to Platinum Equity is further proof that any idiot can become a blogger. For example, one posting that has been getting a lot of attention - even though it was based on nothing but a few beers and some good heroin - suggests the paper sold for less than $15 million. This poor bloke obviously has no clue that the UT's headquarters alone - situated on prime property in a premier location in one of the world's most beautiful cities - is worth several times more than that, recession be damned.
For those who missed it, by the way, here is what was released yesterday:
Platinum Equity to Acquire The San Diego Union-Tribune from The Copley Press, Inc.
SAN DIEGO and BEVERLY HILLS, CA – March 18, 2009 – The Copley Press, Inc. and Platinum Equity announced today that they have signed a definitive agreement under which an affiliate of Platinum will acquire San Diego’s leading daily newspaper, The San Diego Union-Tribune.
The transaction, which is expected to be completed during the second quarter, culminates a sales process that began in July 2008 when Copley announced it had engaged an adviser to explore strategic alternatives for the newspaper.
Harold W. Fuson, Jr., executive vice president for Copley, said that Platinum Equity emerged from that process as the bidder best equipped to ensure that the Union-Tribune – which last changed owners in 1928 – maintains its position as one of San Diego’s leading community institutions.
“This is a vital business with a long tradition of public service and a preeminent position in one of America’s finest media markets,” Mr. Fuson said. “At this important juncture, we believe that Platinum Equity is the right partner for the Union-Tribune, its employees and the San Diego community.”
Platinum is a private equity firm that specializes in acquiring businesses facing complex operational challenges in declining or transitioning markets. Louis Samson, the Platinum Equity principal leading the acquisition, called the Union-Tribune “a good fit for Platinum” and its operations-focused approach.
“We have a long history of creating value by helping established companies navigate difficult market transitions,” Mr. Samson said. “The Union-Tribune is more than a business, it’s an institution in San Diego. But it faces enormous challenge in a period of tremendous upheaval for the newspaper industry. We will bring a strong operational focus that helps ensure the Union-Tribune not only survives in this market, but thrives.”
The Platinum team includes David H. Black, an experienced newspaper owner and operator whose holdings include more than 150 newspapers and websites in the United States and Canada.
“The Union-Tribune is a premier media property in an outstanding market,” Mr. Black said. “We are extremely excited about partnering with the management team and dedicated employees of the Union-Tribune, and building this franchise for the future.”
Financial terms of the transaction were not disclosed. Evercore Partners and Munger, Tolles & Olson LLP advised Copley on the transaction. Platinum Equity was advised by Hughes Hubbard & Reed and Alvarez & Marsal’s Transaction Advisory Group.
About Platinum Equity
Platinum Equity (www.platinumequity.com) is a global M&A&O® firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed nearly 100 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition.
Wednesday, March 18, 2009
The Carpathia
The first time I worked for a newspaper that was sold, I arrived at the old Times-Advocate of Escondido about the same time the Tribune Co. was consolidating its hold over its new property. If there were any profound changes brought on by the new owners, I really didn't notice.
More than a decade later, I lived through another change of ownership when A.H. Belo (The Dallas Morning News) bought the family-owned Press-Enterprise of Riverside. Belo brought in a new executive editor, two-time Pulitzer Prize winner George Rodrique (who I still think is the best executive I've ever worked for), but I left the company for greener pastures before the really profound changes took place.
Today, the newspaper I've been working for the past nine years - The San Diego Union-Tribune - announced it has agreed to sell to Platinum Equity of Beverly Hills for an undisclosed price (which The Wall Street Journal quotes a source as saying is south of $50 million). As stated in an earlier blog post, David Black of Canadian-based Black Press is a partner in the deal, though his exact role has not been disclosed and remains the topic of abundant conjecture.
Relief, anxiety, concern and anticipation are but a few words that describe not only my feelings, but the feelings of most of the people I know. Will the paycuts and furloughs announced just two months ago continue under the new leadership? Who knows (my guess is, `No Duh'). Will the promised layoffs that have yet to materialize, in fact, come to pass? Who knows. (Again, my guess is a big `No Duh') Will the new owners bring a clearer sense of vision to Mission Valley? Everyone I talk to responds with an unequivocal yes. But whether that's good or bad remains to be seen and depends on whom you talk to.
How are others seeing this deal? With interest. The Journal reported "the paper generated about $100 million in cash flow in 2004, according to people familiar with the paper's finances, meaning the Union-Tribune could have been worth close to $1 billion based on valuations at the time. Now, the paper is close to break even, these people say, as it has been battered by the collapse of newspaper classifieds."
The Depression, er, recession, hasn't helped, either.
So what do we know about Platinum Equity? If you recall the earlier post, they have a really cool Web site. And they're headed by a really, really rich guy, Israeli native Tom Gores, whom Forbes says is worth a cool $2.5 billion - the 163rd richest American (but who's counting?).
Platinum also has made a nice living for its investors through buying distressed properties, fixing them up, and selling them at a profit. After cutting costs.
If you have a few million dollars, or more, to invest, you might want to bank it with Platinum. The New Mexico Educational Retirement Board invested $30 million of its portfolio with the private equity firm last year.
"They don't look necessarily at fundamentally broken companies, but at companies where there are one or more operational issues that are preventing a company from realizing its true potential from financial and operational perspectives," according to minutes of a January, 2008, meeting. One investment expert was "impressed with the discipline of the group in terms of what they will purchase and where they will focus."
Harold Fuson Jr., executive vice-president for Copley Press, Inc., said in a statement released this morning that Platinum emerged "as the bidder best equipped to ensure that the Union-Tribune - which last changed owners in 1928 - maintains its position as one of San Diego's leading community institutions."
The Titanic may be sinking, but the Carpathia may well be on its way. Let's hope it isn't four hours late this time.
More than a decade later, I lived through another change of ownership when A.H. Belo (The Dallas Morning News) bought the family-owned Press-Enterprise of Riverside. Belo brought in a new executive editor, two-time Pulitzer Prize winner George Rodrique (who I still think is the best executive I've ever worked for), but I left the company for greener pastures before the really profound changes took place.
Today, the newspaper I've been working for the past nine years - The San Diego Union-Tribune - announced it has agreed to sell to Platinum Equity of Beverly Hills for an undisclosed price (which The Wall Street Journal quotes a source as saying is south of $50 million). As stated in an earlier blog post, David Black of Canadian-based Black Press is a partner in the deal, though his exact role has not been disclosed and remains the topic of abundant conjecture.
Relief, anxiety, concern and anticipation are but a few words that describe not only my feelings, but the feelings of most of the people I know. Will the paycuts and furloughs announced just two months ago continue under the new leadership? Who knows (my guess is, `No Duh'). Will the promised layoffs that have yet to materialize, in fact, come to pass? Who knows. (Again, my guess is a big `No Duh') Will the new owners bring a clearer sense of vision to Mission Valley? Everyone I talk to responds with an unequivocal yes. But whether that's good or bad remains to be seen and depends on whom you talk to.
How are others seeing this deal? With interest. The Journal reported "the paper generated about $100 million in cash flow in 2004, according to people familiar with the paper's finances, meaning the Union-Tribune could have been worth close to $1 billion based on valuations at the time. Now, the paper is close to break even, these people say, as it has been battered by the collapse of newspaper classifieds."
The Depression, er, recession, hasn't helped, either.
So what do we know about Platinum Equity? If you recall the earlier post, they have a really cool Web site. And they're headed by a really, really rich guy, Israeli native Tom Gores, whom Forbes says is worth a cool $2.5 billion - the 163rd richest American (but who's counting?).
Platinum also has made a nice living for its investors through buying distressed properties, fixing them up, and selling them at a profit. After cutting costs.
If you have a few million dollars, or more, to invest, you might want to bank it with Platinum. The New Mexico Educational Retirement Board invested $30 million of its portfolio with the private equity firm last year.
"They don't look necessarily at fundamentally broken companies, but at companies where there are one or more operational issues that are preventing a company from realizing its true potential from financial and operational perspectives," according to minutes of a January, 2008, meeting. One investment expert was "impressed with the discipline of the group in terms of what they will purchase and where they will focus."
Harold Fuson Jr., executive vice-president for Copley Press, Inc., said in a statement released this morning that Platinum emerged "as the bidder best equipped to ensure that the Union-Tribune - which last changed owners in 1928 - maintains its position as one of San Diego's leading community institutions."
The Titanic may be sinking, but the Carpathia may well be on its way. Let's hope it isn't four hours late this time.
Monday, March 16, 2009
Bad day at the office
The Seattle Post-Intelligencer publishes its last print edition tomorrow. McClatchy's News & Observer is cutting about 27 newsroom jobs while mandating furloughs. And The New York Times comes out with an opinion piece today offering a strong argument for why newspapers can't be saved.
Just another chapter in the sinking of the Titanic.
Meanwhile, Copley's Borrego Sun has been sold to Patrick Meehan, a former Black Sabbath manager and majority owner of British media entertainment company HandMade Films (Life of Brian; Lock, Stock and Two Smoking Barrels). No price was announced. The sale leaves Copley with one remaining paper, The San Diego Union-Tribune.
Just another chapter in the sinking of the Titanic.
Meanwhile, Copley's Borrego Sun has been sold to Patrick Meehan, a former Black Sabbath manager and majority owner of British media entertainment company HandMade Films (Life of Brian; Lock, Stock and Two Smoking Barrels). No price was announced. The sale leaves Copley with one remaining paper, The San Diego Union-Tribune.
Wednesday, March 11, 2009
I'm so glad we had this time together....
I've sold programs at Dodger Stadium, made skis in Sparks, Nevada, washed dishes at college dormitories. And I can assure you that no place I've worked can provide the atmosphere of a newsroom.
Today was typical. From discussing in depth with copy editor Jim Healy the nuances in the theme song from Mannix and the classic early episodes of Mr. Ed (I still can't believe he's never seen the one where Mr. Ed outpitches Don Drysdale at Chavez Ravine), to waxing poetic with copy editor John Keller about the Lakers' chances of winning their 15th NBA title this year (why is it that I find the most interesting discussions with copy editors?), the people I deal with daily on the third floor of The San Diego Union-Tribune offer me what we used to call a psychic benefit: freedom from a boring workplace.
We're going through uncertain times; friends tell me I should change the name of my blog to EndangeredJournalist.com. Who knows if the newspaper I work for will be around by the time my youngest child gets to college? But I worry not. I find it refreshing to engage in routine conversation with co-workers, where I can learn everything from the best way to cook fried rice (thank you, Helen Gao) to the better neighborhoods for my son to live in near UC Davis (courtesy of Steve Schmidt). I've learned everything I need to know about Gaelic soccer (I never knew such a thing existed until last week), along with more than I need to know about creating my own Web site or finding lost dogs. And whenever I need to brush up on Chicago politics or get my fill of San Diego State basketball, John Cannon is there to help.
In what other job, what other profession, could I meet everyone from Orrin Hatch to John Lee Hooker, get thrown out of the Dodger clubhouse by none other than Tommy Lasorda, or learn how to make killer lasagna from the firefighters at Station 9 in Escondido? But best of all, in what other profession could I have met the wonderful people who have crossed my path in various newsrooms the past 28 years?
I may not be working here next week, but I'll never regret the line of work I chose.
Today was typical. From discussing in depth with copy editor Jim Healy the nuances in the theme song from Mannix and the classic early episodes of Mr. Ed (I still can't believe he's never seen the one where Mr. Ed outpitches Don Drysdale at Chavez Ravine), to waxing poetic with copy editor John Keller about the Lakers' chances of winning their 15th NBA title this year (why is it that I find the most interesting discussions with copy editors?), the people I deal with daily on the third floor of The San Diego Union-Tribune offer me what we used to call a psychic benefit: freedom from a boring workplace.
We're going through uncertain times; friends tell me I should change the name of my blog to EndangeredJournalist.com. Who knows if the newspaper I work for will be around by the time my youngest child gets to college? But I worry not. I find it refreshing to engage in routine conversation with co-workers, where I can learn everything from the best way to cook fried rice (thank you, Helen Gao) to the better neighborhoods for my son to live in near UC Davis (courtesy of Steve Schmidt). I've learned everything I need to know about Gaelic soccer (I never knew such a thing existed until last week), along with more than I need to know about creating my own Web site or finding lost dogs. And whenever I need to brush up on Chicago politics or get my fill of San Diego State basketball, John Cannon is there to help.
In what other job, what other profession, could I meet everyone from Orrin Hatch to John Lee Hooker, get thrown out of the Dodger clubhouse by none other than Tommy Lasorda, or learn how to make killer lasagna from the firefighters at Station 9 in Escondido? But best of all, in what other profession could I have met the wonderful people who have crossed my path in various newsrooms the past 28 years?
I may not be working here next week, but I'll never regret the line of work I chose.
Friday, March 6, 2009
The Promised Land
Twenty-eight years ago this week I landed my first regular-paying job as a reporter. The parallels to what's transpiring in the industry today are almost frightening.
In 1981, the unemployment rate was soaring, the economy was in deep decline and newspapers across the country were folding at a record pace as the reading public lost its appetite for afternoon editions. The industry was going through a transformation toward the digital age. Touting myself as being literate in the use of computers - VDT experience! I boasted - got more than one potential employer to take notice.
Still, no one was hiring. The industry, many said, was dying. But there was nothing more that I wanted to do, and I was willing to do it for free.
Paul Danison, now of the Orange County Register, heard of me through some mutual acquaintances. I was a senior at San Diego State University, working full time as editorial page editor of The Daily Aztec, laboring from 7 to 11 at nights as a janitor and taking a full load of classes somewhere in between. Sleep was overrated.
I don't remember much of my interview with Paul, except that he was a Reds fan and I told him I loved the Dodgers, but it was my talk with a reporter at the paper that sealed the deal. We work hard here, Mark Petix warned me. The hours are long. We do everything except take out the trash. And the pay is crap.
Heck, I told him. I work about 60 hours a week. Go to school full time. As a janitor, taking out the trash was the easiest part of my night job. And I'll work for free.
Bring it on, I said.
I was hired. I had arrived. The fact that I was offered $150 a week was gravy. With three months left in my senior year at college, I began covering the unincorporated community of Cardiff for The Citizen of Solana Beach, a weekly paper affiliated with the daily Blade-Tribune of Oceanside.
Those of us who entered the business in trying times - and there have been many - have similar stories to tell, some way better than mine. But for me, the roles are now reversed. As an editor who has found a niche working with college interns, I see highly educated, gifted young writers everyday yearning to launch a career in an industry during a period of unprecedented transformation. The challenges facing newspapers do not to discourage, however, but serve to motivate.
And they're pretty damn talented, possessing skills far beyond what some publications consider necessary for thriving multi-media sites.
These kids are the future of the industry. They will lead us to the promised land. Just as my generation did during the last economic calamity some 30 years ago.
In 1981, the unemployment rate was soaring, the economy was in deep decline and newspapers across the country were folding at a record pace as the reading public lost its appetite for afternoon editions. The industry was going through a transformation toward the digital age. Touting myself as being literate in the use of computers - VDT experience! I boasted - got more than one potential employer to take notice.
Still, no one was hiring. The industry, many said, was dying. But there was nothing more that I wanted to do, and I was willing to do it for free.
Paul Danison, now of the Orange County Register, heard of me through some mutual acquaintances. I was a senior at San Diego State University, working full time as editorial page editor of The Daily Aztec, laboring from 7 to 11 at nights as a janitor and taking a full load of classes somewhere in between. Sleep was overrated.
I don't remember much of my interview with Paul, except that he was a Reds fan and I told him I loved the Dodgers, but it was my talk with a reporter at the paper that sealed the deal. We work hard here, Mark Petix warned me. The hours are long. We do everything except take out the trash. And the pay is crap.
Heck, I told him. I work about 60 hours a week. Go to school full time. As a janitor, taking out the trash was the easiest part of my night job. And I'll work for free.
Bring it on, I said.
I was hired. I had arrived. The fact that I was offered $150 a week was gravy. With three months left in my senior year at college, I began covering the unincorporated community of Cardiff for The Citizen of Solana Beach, a weekly paper affiliated with the daily Blade-Tribune of Oceanside.
Those of us who entered the business in trying times - and there have been many - have similar stories to tell, some way better than mine. But for me, the roles are now reversed. As an editor who has found a niche working with college interns, I see highly educated, gifted young writers everyday yearning to launch a career in an industry during a period of unprecedented transformation. The challenges facing newspapers do not to discourage, however, but serve to motivate.
And they're pretty damn talented, possessing skills far beyond what some publications consider necessary for thriving multi-media sites.
These kids are the future of the industry. They will lead us to the promised land. Just as my generation did during the last economic calamity some 30 years ago.
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