The Rise of Hedge Fund Era

Dr. Qian Yu reveals why the newspaper industry became a target of hedge funds, how hedge-fund owned newspapers are managed and the impact on journalism. The news is not good: hedge fund ownership brings rounds of layoffs, unrealistic financial goals, and cuts in resources to support journalism. She finds newspaper managers cling to their professional values rooted in truth-telling, government vigilance and public service, but realize their professionalism has little influence in corporate decision-making. While the digital age has ended public reliance on printed news, Yu chronicles how hedge fund ownership is the greater threat to newspapers’ sustainability and their historic roles of community building and informing citizens in a democracy.

—Peter Gade, Ph.D.

The widespread shift in ownership of U.S. daily newspapers to hedge funds is increasing the economic instability of an industry already under duress in the digital era. Dr. Qian Yu provides the first systematic and in-depth exploration of this change and its impact. Analysis of corporate annual reports provides insight on the vulnerability of newspapers to hedge fund takeover, and in-depth interviews with managers at hedge fund-owned newspapers highlight the severe consequences that ensue after these changes in ownership.

—David Craig, Ph.D.

This book sheds light on the relationship between media ownership and management, particularly in the context of hedge fund ownership in the U.S. news media industry. The book is grounded in two empirical studies: one examining financial issues, and the other examining opinion issues. Study one is a longitudinal study spanning from 2007 to 2022, analyzing 55 annual reports from four newspaper companies over 16 years, including Gannett, Lee Enterprises, Tribune Publishing, and McClatchy. Study Two includes nationally conducted in-depth interviews, targeting individuals in management positions at newspapers acquired by hedge funds, namely Tribune Publishing (acquired by Alden in 2021) and McClatchy (acquired by Chatham in 2019).

Qian Yu is the Assistant Professor of Mass Communication in the department of Communication at Eastern New Mexico University. She was awarded her PhD degree from the University of Oklahoma. After more than ten years of significant professional experience in a wide range of media industry, she is now a scholar exploring turbulent economic change in relation to journalism professionalism and media management.