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DI

Digital First Media

media
PE-OWNED

Newspaper publisher operating daily newspapers including Denver Post and Mercury News.

PE-OWNED

Acquired by Alden Global Capital2010-01-15

View PE Firm Profile

What Made It Great

“

Digital-focused newspaper operations with cost-cutting efficiency model

What PE Will Likely Do

Predictions

Significant newsroom layoffs, with 50-75% of editorial staff let go

HIGH LIKELIHOODBased on: Alden Global Capital's track record of aggressive cost-cutting and layoffs at the media companies it acquires

Consolidation of newsrooms across Digital First Media publications, leading to less localized content and coverage

HIGH LIKELIHOODBased on: The industry playbook for private equity firms in the media sector, which shows a high frequency of the specific tactics predicted

Implementation of stricter paywalls, requiring more readers to pay for access to online news articles

HIGH LIKELIHOODBased on: The original value proposition of Digital First Media as a cost-efficient, digital-focused newspaper publisher, which makes it a prime target for PE cost-cutting

Reduction in print frequency or potential elimination of print editions for some publications

HIGH LIKELIHOODBased on: The original value proposition of Digital First Media as a cost-efficient, digital-focused newspaper publisher, which makes it a prime target for PE cost-cutting

Cutbacks to investigative journalism teams, resulting in fewer in-depth stories holding local authorities and businesses accountable

HIGH LIKELIHOODBased on: The original value proposition of Digital First Media as a cost-efficient, digital-focused newspaper publisher, which makes it a prime target for PE cost-cutting

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Acquisition announced, with promises of 'investment' in Digital First Media's operations. Initial round of newsroom layoffs and 'restructuring' announced.

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Print schedules reduced for some publications, with more content consolidated across outlets. Quality of local reporting and investigative journalism begins to decline.

12-24 months

“12 to 24 months months”

Paywall requirements significantly tightened, with more content locked behind subscription paywalls. Readers increasingly complain about the reduced quality and coverage of local news.

Similar Cases

Other companies that followed a similar path after PE acquisition

Operating

Sports Illustrated

Authentic Brands Group·2019

See full case study
Operating

McClatchy Newspapers

Chatham Asset Management·2020

See full case study
Operating

Denver Post

Alden Global Capital·2018

See full case study
Operating

Chicago Tribune

Alden Global Capital·2021

See full case study
Operating

Baltimore Sun

Alden Global Capital·2021

See full case study

What You Can Do

Take Action

Actions

  • Subscribe directly to your local Digital First Media newspaper to support quality local journalism and avoid the effects of cost-cutting

  • Advocate for your local government and community leaders to explore alternative ownership models for your community's news outlets, such as nonprofit or public ownership

  • Seek out alternative local news sources, such as nonprofit or community-supported journalism, to supplement the declining coverage from Digital First Media publications

Alternatives

Research independent alternativesSAFE

Look for family-owned or employee-owned businesses

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"Digital First Media is now PE-owned. Here's what that means for you."