Wrapports' Michael Ferro is now in charge of Tribune Publishing. God help us all
Last night, Chicago's journalism community collectively shuddered in terror and/or disgust.
When Wrapports' Michael Ferro because Tribune Publishing's biggest shareholder and "non-executive chairman," I don't think anyone doubted that he would influence the company's policy. But I figured there was only so much he could do. Jack Griffin was still CEO. He still had a strong editorial vision. Surely, Ferro wouldn't just be able to do whatever he wanted?
But late last night, we learned that yes, he actually pretty much could. Over at Politico Media Ken Doctor broke the news that Ferro orchestrated Griffin's firing, effective this morning. The new CEO is Justin Dearborn, a long-time Ferro associate (something that Tribune Publishing's official press release downplays).
Copies of Chicago Tribune and ex-STM newspapers at Pioneer Press' temporary newsroom
Turned out that, while his title may have the world "non-executive," the "non" part was pretty much meaningless.
He moved into the third-floor “chairman’s suite” office in Tribune Tower in Chicago. Then, he asserted himself right away, in the Tower, and in travel both to The Los Angeles Times and Tribune’s New York office. In addition to involving Dearborn in meetings, he had already assembled a small personal staff, and brought Malcolm CasSelle on board as president for new media ventures, reporting to Ferro. CasSelle will now relocate to Chicago, I’m told.
For the last two weeks - since Ferro’s arrival - Tribune executives note that they heard less from their CEO than from Ferro. Even top execs privately wondered who was now defining company strategy and direction, and found Griffin’s presence oddly lacking.
Keep in mind that it was Griffin who brought Ferro on board in order to get the money necessary to get the money to buy South California's Orange County Register and Riverside Press-Enterprise. And, As you may recall, Poynter's James Warren had a theory that Griffin was also hoping that this would secure his own position by having Ferro act as a barrier against outside attempts to buy part(s) or all of the company. If so, it backfired spectacularly.
Like Doctor wrote, it was practically Shakespearian.
What does this mean for the Tribune? At this point, it's hard to say. As I wrote before, Griffin's strategy was, basically, to buy up as many newspapers in all of the media markets where Tribune company has media presence (Greater Chicagoland, Baltimore area, southern California, Florida, Connecticut and parts of Pennsylvania and Virginia). The idea was that it would boost the company's financial fortunes (remember - the bigger the company's circulation footprint, the greater reach it can offer to advertisers, which brings in more money and more advertising opportunities. It also conveniently reduces competition, which could allow the company to raise rates in some markets). He was also a big believer in trying to consolidation decision-making and some other operational aspects in Chicago.
Another important thing to remember about Griffin is that he was a big fan of newspapers. Sure, he may have cut things, and reduced certain features more or less from the get-go, but one gets a sense that he did it because he had to maintain the thin margins that keep Tribune profitable. He wanted to keep both TribLocal and Pioneer Press around, and he only cut TribLocal when (presumably) it turned out that Pioneer Press was more profitable. RedEye may be a shadow of its former self on most days except Fridays, but it's still being kept around. Plus, Griffin made the oft-ridiculed statement that today's youth would read newspapers more when they get older.
Ferro has no such attachment. His strategy at Sun-Times Media was to use the company's assets to prop up digital initiatives. The Sun-Times Network wasn't entirely his idea, but he always wanted to turn STM into more of a national outlet. The Grid magazine was supposed to be published in other cities if it took off in Chicago (which, alas, it didn't), and in the early days, he was open about the ambitions for buying other newspapers (including the Tribune). The original concept for Aggrego was a network of suburban websites. But bottom line is, his idea was, basically, that the newspapers are dying and the best thing one can do is to try to use whatever is left to launch something else entirely. Something more suited for the digital age.
He's not the only one who believes in this strategy. And reading Doctor's article, one gets a sense of why Ferro's move received support - Griffin's strategy didn't improve Tribune's fortunes, so why not try something more forward-thinking?
Thing is, Ferro's record shows that he's not the person who can actually pull it off well.
I have been meaning to put together a post detailing all the ways in which he tried and failed to improve Sun-Times Media's finances. I am probably going to still do it, but for now, let me summarize some highlights.
His big plan for Aggrego never really took off, and the few parts that were implemented were scaled back. His attempt to expand into Florida petered out, and the websites were nuked. All of lifestyle websites Wrapports launched - WeekAway, Wedding Catcher - gone by October 2014. Chicago Viewmix - an attempt to apply Aggrego formula to Chicago - barely got any attention and it was quietly abandoned. Real estate orientated SpashHome and HomeMix - gone. Sun-Times Community Network, a sort of proto-Aggrego, vanished without a trace. Rankommend, an online service that mixed business listings with advertorials - you know the drill by now.
For all of Ferro's talk about the digital future, he allowed suburban newspaper blogs to die out, and Sun-Times Voices blogs got unceremoniously nuked.
But perhaps most tellingly, Ferro bought Chicago.com - and proceeded to do nothing with it. Well, not exactly nothing - there was an advertising campaign to encourage people to buy @chicago.com addresses (because, supposedly, they look more professional) and some articles do get posted on the website, but it's light, rarely updated fluff.
How does one take a domain name that corresponds to the third largest city in United States and squander it so badly?
Even if you assume that, somehow, Ferro learned from his mistakes, there are plenty of other reasons to worry about him being in charge. Griffin strongly believed in journalism ethics, in being accurate and accountable. I may have issues with some of the ways this was actually implemented, but there's no denying that the man's heart is in the right place.
Under Ferro's watch, Sun-Times ended the policy of endorsing candidates - only to resurrect it just in time to endorse former Wrapports investor Bruce Rauner. And, lest we forget, presided over the events that led Springfield reporter Dave McKinney to quit Chicago Sun-Times in disgust. We may never know just how much of a role he played, exactly, but he played a role.
And it's not just the ethics. If you look at Ferro's initiatives, a certain theme emerges. He lives news coverage light and fluffy, using links to other resources as much as possible and utilizing as little paid labor as possible. Which is a formula for a clickbait generator, but it's a terrible idea for Chicago freaking Tribune.
Investigative reporting has always been the newspapers' strength. If Tribune is to continue existing, it must provide something no other outlet can. And the sort of lightweight, generic as hell clickbaity crap that gets churned out by underpaid, overworked interns sure as hell isn't it.
And finally - this is a man who has shown that he was quite willing to stab a supporter in the back to get what he wants. Why on Earth would anyone ever fully trust him again?
What worries me most is that I don't think Ferro learned from his mistakes. Why would he? He mismanaged Chicagoland's second-biggest media company and got control of the area's biggest company, a company that controls some of the most iconic newspapers in United States.
There has been an obvious question of whether this new development would mean that Chicago Tribune and Chicago Sun-Times would merge. I think that's a possibility. But even if he doesn't, there's still plenty of reason to worry.
As Wrappports chairmaan, Ferro controlled 40 newspapers and a magazine that fit Greater Chicagoland. As Tribune chair, he controls a company with national reach. It has Hollywood coverage, a well-respected Washington bureau, and national and international correspondents. Oh, and unlike Sun-Times Media, it still has staff photographers.
The stakes are bigger. The damage Ferro could do would have much wider impact.
A few weeks back, my former editor invited me to a Chicago Headline Club get-together. I've been trying to decide whether to attend it or attend a writing workshop.
With this latest news, I don't see how I have any choice.
When Wrapports' Michael Ferro because Tribune Publishing's biggest shareholder and "non-executive chairman," I don't think anyone doubted that he would influence the company's policy. But I figured there was only so much he could do. Jack Griffin was still CEO. He still had a strong editorial vision. Surely, Ferro wouldn't just be able to do whatever he wanted?
But late last night, we learned that yes, he actually pretty much could. Over at Politico Media Ken Doctor broke the news that Ferro orchestrated Griffin's firing, effective this morning. The new CEO is Justin Dearborn, a long-time Ferro associate (something that Tribune Publishing's official press release downplays).
Copies of Chicago Tribune and ex-STM newspapers at Pioneer Press' temporary newsroom
Turned out that, while his title may have the world "non-executive," the "non" part was pretty much meaningless.
He moved into the third-floor “chairman’s suite” office in Tribune Tower in Chicago. Then, he asserted himself right away, in the Tower, and in travel both to The Los Angeles Times and Tribune’s New York office. In addition to involving Dearborn in meetings, he had already assembled a small personal staff, and brought Malcolm CasSelle on board as president for new media ventures, reporting to Ferro. CasSelle will now relocate to Chicago, I’m told.
For the last two weeks - since Ferro’s arrival - Tribune executives note that they heard less from their CEO than from Ferro. Even top execs privately wondered who was now defining company strategy and direction, and found Griffin’s presence oddly lacking.
Keep in mind that it was Griffin who brought Ferro on board in order to get the money necessary to get the money to buy South California's Orange County Register and Riverside Press-Enterprise. And, As you may recall, Poynter's James Warren had a theory that Griffin was also hoping that this would secure his own position by having Ferro act as a barrier against outside attempts to buy part(s) or all of the company. If so, it backfired spectacularly.
Like Doctor wrote, it was practically Shakespearian.
What does this mean for the Tribune? At this point, it's hard to say. As I wrote before, Griffin's strategy was, basically, to buy up as many newspapers in all of the media markets where Tribune company has media presence (Greater Chicagoland, Baltimore area, southern California, Florida, Connecticut and parts of Pennsylvania and Virginia). The idea was that it would boost the company's financial fortunes (remember - the bigger the company's circulation footprint, the greater reach it can offer to advertisers, which brings in more money and more advertising opportunities. It also conveniently reduces competition, which could allow the company to raise rates in some markets). He was also a big believer in trying to consolidation decision-making and some other operational aspects in Chicago.
Another important thing to remember about Griffin is that he was a big fan of newspapers. Sure, he may have cut things, and reduced certain features more or less from the get-go, but one gets a sense that he did it because he had to maintain the thin margins that keep Tribune profitable. He wanted to keep both TribLocal and Pioneer Press around, and he only cut TribLocal when (presumably) it turned out that Pioneer Press was more profitable. RedEye may be a shadow of its former self on most days except Fridays, but it's still being kept around. Plus, Griffin made the oft-ridiculed statement that today's youth would read newspapers more when they get older.
Ferro has no such attachment. His strategy at Sun-Times Media was to use the company's assets to prop up digital initiatives. The Sun-Times Network wasn't entirely his idea, but he always wanted to turn STM into more of a national outlet. The Grid magazine was supposed to be published in other cities if it took off in Chicago (which, alas, it didn't), and in the early days, he was open about the ambitions for buying other newspapers (including the Tribune). The original concept for Aggrego was a network of suburban websites. But bottom line is, his idea was, basically, that the newspapers are dying and the best thing one can do is to try to use whatever is left to launch something else entirely. Something more suited for the digital age.
He's not the only one who believes in this strategy. And reading Doctor's article, one gets a sense of why Ferro's move received support - Griffin's strategy didn't improve Tribune's fortunes, so why not try something more forward-thinking?
Thing is, Ferro's record shows that he's not the person who can actually pull it off well.
I have been meaning to put together a post detailing all the ways in which he tried and failed to improve Sun-Times Media's finances. I am probably going to still do it, but for now, let me summarize some highlights.
His big plan for Aggrego never really took off, and the few parts that were implemented were scaled back. His attempt to expand into Florida petered out, and the websites were nuked. All of lifestyle websites Wrapports launched - WeekAway, Wedding Catcher - gone by October 2014. Chicago Viewmix - an attempt to apply Aggrego formula to Chicago - barely got any attention and it was quietly abandoned. Real estate orientated SpashHome and HomeMix - gone. Sun-Times Community Network, a sort of proto-Aggrego, vanished without a trace. Rankommend, an online service that mixed business listings with advertorials - you know the drill by now.
For all of Ferro's talk about the digital future, he allowed suburban newspaper blogs to die out, and Sun-Times Voices blogs got unceremoniously nuked.
But perhaps most tellingly, Ferro bought Chicago.com - and proceeded to do nothing with it. Well, not exactly nothing - there was an advertising campaign to encourage people to buy @chicago.com addresses (because, supposedly, they look more professional) and some articles do get posted on the website, but it's light, rarely updated fluff.
How does one take a domain name that corresponds to the third largest city in United States and squander it so badly?
Even if you assume that, somehow, Ferro learned from his mistakes, there are plenty of other reasons to worry about him being in charge. Griffin strongly believed in journalism ethics, in being accurate and accountable. I may have issues with some of the ways this was actually implemented, but there's no denying that the man's heart is in the right place.
Under Ferro's watch, Sun-Times ended the policy of endorsing candidates - only to resurrect it just in time to endorse former Wrapports investor Bruce Rauner. And, lest we forget, presided over the events that led Springfield reporter Dave McKinney to quit Chicago Sun-Times in disgust. We may never know just how much of a role he played, exactly, but he played a role.
And it's not just the ethics. If you look at Ferro's initiatives, a certain theme emerges. He lives news coverage light and fluffy, using links to other resources as much as possible and utilizing as little paid labor as possible. Which is a formula for a clickbait generator, but it's a terrible idea for Chicago freaking Tribune.
Investigative reporting has always been the newspapers' strength. If Tribune is to continue existing, it must provide something no other outlet can. And the sort of lightweight, generic as hell clickbaity crap that gets churned out by underpaid, overworked interns sure as hell isn't it.
And finally - this is a man who has shown that he was quite willing to stab a supporter in the back to get what he wants. Why on Earth would anyone ever fully trust him again?
What worries me most is that I don't think Ferro learned from his mistakes. Why would he? He mismanaged Chicagoland's second-biggest media company and got control of the area's biggest company, a company that controls some of the most iconic newspapers in United States.
There has been an obvious question of whether this new development would mean that Chicago Tribune and Chicago Sun-Times would merge. I think that's a possibility. But even if he doesn't, there's still plenty of reason to worry.
As Wrappports chairmaan, Ferro controlled 40 newspapers and a magazine that fit Greater Chicagoland. As Tribune chair, he controls a company with national reach. It has Hollywood coverage, a well-respected Washington bureau, and national and international correspondents. Oh, and unlike Sun-Times Media, it still has staff photographers.
The stakes are bigger. The damage Ferro could do would have much wider impact.
A few weeks back, my former editor invited me to a Chicago Headline Club get-together. I've been trying to decide whether to attend it or attend a writing workshop.
With this latest news, I don't see how I have any choice.