Salem, Oregon Newspaper's Parent Company Takes Big Hit on Wall Street

Gannett Co., owner of Statesman Journal and USA Today, is the big loser. Other newspaper companies feel the heat.

(SALEM, Ore.) - A company notorious for saying "their stocks never drop" has taken a big hit on Wall Street. Gannett Co., owner of the Statesman Journal Newspaper in Salem, Oregon, as well as the Stayton and Silverton newspapers, is the biggest newspaper company in the world.

Forbes Magazine and The Associated Press report that newspaper publishers around the country are down on Gannett, a company that on Thursday, noted a significant decline in advertising revenue which fell 3.8 percent in February to $385 million, down from $400.4 million the February before.

This in turn has impacted other newspaper stocks on the NYSE like Tribune Co., the New York Times Co. and E.W. Scripps Co. And the effect may not be turning around any time soon. Interestingly, the only media that is making headway and gaining advertising revenue nationally each year is Internet.

The high cost of paper is only one of the factors contributing to the decline of newspaper's popularity. Recent scandals involving circulation numbers have landed numerous circulation directors across the country in hot water and legal difficulty.

Instant news found on the Web has newspaper companies scrambling for new structure in their news departments. Video, something totally foreign in newspaper operations until recently, is suddenly being shot by still photographers.

At the Statesman Journal Newspaper in Salem, newsroom veterans are facing the unknown, as the traditional news gathering techniques of the industry are being supplemented with new demands of "content" for both the print and electronic products.

According to the Forbes article, groups like Morgan Stanley are maintaining "a cautious outlook" on the Statesman's parent company, Gannett, due to the weak February results.

"Revenues look to be far from reaching some sort of a trough and until we see some indication of stabilization we would steer clear from owning the shares," noted Lisa N. Monaco of Morgan Stanley.

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Osotan; March 24, 2007 8:05 am (Pacific time)

I noticed Gannett and Co. closed @ 56.23 at close of yesterday market. How about getting S-N on the OTCSE?

Hank Ruark March 21, 2007 10:32 am (Pacific time)

This is partial content of another item in a local channel, summarized for its potency here: > Meanwhile, at home, McCarthyism gave way to consumerism on steroids and the triumph of the American corporation on all fronts—a feat that had its roots in an obscure Supreme Court technicality in the > decision, Santa Clara vs. Union Pacific Railroad in 1886, which declared that corporations were “persons” who had the same “civil rights” guaranteed freed slaves under the Fourteenth Amendment. You will immediately recognize this as fundamental error by "the Supremes" making possible overwhelming application of full corporate dollar-power vs the miniscule offset of individual abilities to pay for politica propaganda propelled deeper and wider by control, via "deregulation" and "consolidation", of the major channels for once independent/and/free press, once potent in defense of the democracy from which it arose. The material comes from GODFATHER GOVERNMENT IS NOT A SCANDAL, available at Carolyn Baker's Blog: www.carolynbaker.org. or,on request, from me as PDF. There are a number of other similar erroneous decisions by this same Presidentially- appointed Court which carry on and make more invidious this this chimerical "decision", long recognized as a legal fiction perpetrated solely for political purposes, and now seen essentially destructive to fundamental democratic principle, since it pits unlimited corporate financial resources against the pitiful limits of the person. Numerous Internet sources are easily available; list on request to me. That is where "corporate 'campaign contributions'" came from...surely a pertinent and potent part of any political discussion these days, given both the Bush I and II royalist regime and the local "power of the press" involving monopoly management clearly seeking dollar-return over traditional journalistic community service. See Gannett-stock story in Salem-News for further public comment: www.salem-news.com Be sure to use hyphen (salem-news) or Internet will whisk you back to small daily on Mass. state-loop for United Press, ironically one I edited from UPI-Bsn in early 'Forties... Hank

Hank Ruark March 21, 2007 8:13 am (Pacific time)

This pgh from GUARDIAN special report, available here as PDF --and very pertinent to local situation. "Fortunately, even in democracies, people are able to recognize the overarching need to protect the community, even if it affects the immediate self-interest of the free market." This remains true in any society only so long as participants have freedom to be well informed on these issues. When corporate control of both ostensibly free press and media and "the government" (via corruption and influence) becomes the overarching problem, then and there democracy founders --and in time will disappear -- replaced by either dictator returning to old-fashioned "royalism" and all its privilege and pretense; Or fascism in any fancy-garb it may assume, with all its bloody essential attributes, including suppression, domination and torture.

News Conscience March 20, 2007 9:25 pm (Pacific time)

Your description may be more to the point I admit, why have gloves on when it comes to this subject after all? My boyfriend worked there and had a horrible experience. It was before I knew him but I have heard all about it and it was one unfair situation and demand after another. They only care about the almighty dollar and I think the word is finally getting out.

Curmudgeon March 20, 2007 9:11 pm (Pacific time)

You can call if a slap in the face if you want, but I interpret more as being given the single digit salute. I have come to the realization that Gannett has no respect for the people it considers it's consumers. I have no doubt there are many very good, well-intentioned people working for Gannett at it's local papers, but I suspect they may spend a lot of time beating their heads against the corporate wall.

News Conscience March 20, 2007 8:02 pm (Pacific time)

That must be an example of where the value lies, "we'll just throw this one up again, nobody reads it anyway." Gannett and the statesman are a slap in the face to this community.

Curmudgeon March 20, 2007 7:51 pm (Pacific time)

Today's S-J presents an excellent example of their apparent lack of interest in reporting news. They are apparently just filling space. On March 3 they published an article on a Salem teacher. Four days later, on March 7 they published the same article again. Not a similar article, but EXACTLY the same article, word for word, with a link added just below the byline. Today, March 20, they have published the same article again, without the link, with two word changes to reflect the passage of two weeks. I wonder if the writer is planning on making a career of that article?

News Conscience March 20, 2007 2:17 pm (Pacific time)

Dale, I guess I would have to visit the SJ to know that. With the way things are going, I'm hesitant to visit their ugly mess of a Website. Wasted space, confusing and misleading information, ads for services that imply being local but are actually national with a small space for "Salem" or "Oregon." I'm just tired of them getting away with it, where are the Internet Quality Police?

Dale Corvallis March 20, 2007 2:10 pm (Pacific time)

News Conscience thanks for that, but the reporter that did it was a VETERAN reporter of the paper that's what makes it more distrubing.

News Conscience March 20, 2007 1:31 pm (Pacific time)

Dale, thanks for pointing out an important problem. Many journalists believe that even a simple rewrite doesn't always justify slapping the reporter's name on it. The Salem paper has brought aboard a flood of interns to replace regular paid reporters. It is embarrassing that the community goes on supporting the SJ but the status quo is changing. At least the Oregonian and Salem-News still seem to value the quality of journalism. Let's hope that this bad news about Gannett causes change. As the writer of this report implied; the bar keeps casting a larger shadow on the ground every day.

Dale Corvallis March 20, 2007 7:50 am (Pacific time)

Here is how bad the state's second largest newspaper is Just recently one of their life section reporters took an OSU press release and made it his own verbatim. What crap! Journalism 101 tells you that if your going to use a press release and make it your own to at least re-write it! But this kind of thing should show ad reps why they should not do business with the sj. That's why I use it as a puppy/kitten feces catcher!

Grinning March 19, 2007 11:55 am (Pacific time)

Nothing like calling a spade a spade.

Raven March 18, 2007 9:42 pm (Pacific time)

Well I do have to say that their Sunday paper sucks. You have to buy a Portland paper to get any real substance.

Sonya March 18, 2007 3:34 pm (Pacific time)

Anyone who has worked at the Statesman in recent years knows how things have become there. They are dropping the bar more each day. They rolled their female publisher and brought in a male publisher, they let a veteran reporter go that people in the community enjoyed working with, it is just like the article says, a downward spiral. I'm glad that Salem-News.com is here for Oregon, you guys are a breath of fresh air.

Abe March 18, 2007 3:18 pm (Pacific time)

Perhaps the SJ needs to join in more partnerships with government (ala OHandSU) as I suspect they have with DHS in working to solve their delivery staffing concerns. What better way to insure good publication delivery than to benefit from the continual support of DHS (public) employees using severely handicapped client(s) in ruses of Job Training (in an auto-route circumstances) that began soon after gas prices skyrocketed. I can see how Chemeketa Community College might benefit from selling SJ Ads in their Marketing education programs. Does CCC offer classes in journalism?

Hank Ruark March 18, 2007 2:32 pm (Pacific time)

Mike et al: Tum McGuire wrote WandL report; he is p/president (01-02) of ASNE, which qualifies him as well as long jrnlsm career. Market finally recognizing what readers found out in past ten years; monopoly will fast implode when potency expires, as is happening here. Opinion remains merely "bellybutton feeling" until documented by solid-source information...which is how we do our Op Eds.

Matt Johnson March 18, 2007 2:10 pm (Pacific time)

I don't know what that guy Mike is talking about, this is a well written piece and the truth hurts, I suppose. The Wall Street Journal charges $4.95 to look at a story on the Web if it is a few days old, the Statesman Journal charges also. I don't recall ever being asked to pay for to look at a story on this site, that is why I spend part of each day here, and I don't even live in Oregon.

Curmudgeon March 18, 2007 1:39 pm (Pacific time)

I can't say this surprises me. Rather, it's as expected. Gannett has grown to monopolize newspaper publishing in the U.S. At one time their purpose was to report the news. Their primary purpose now is to generate revenue by selling advertising. They still try to give the appearance of being a "newspaper" publisher by printing poorly written accounts of a few newsworthy events. Many of the people they call reporters have extremely limited skills of observation and are barely literate. But I guess they're "cost effective." Their response to this latest will be to further cut expenses in the newsroom while trying to increase advertising revenues, and the downward spiral will continue. At some point I think they will implode, and the bean counters will sit in their ivory towers wondering what went wrong. When a monopoly gets so large and powerful that they think they can dictate what people buy rather than provide what people expect for their money, the people will go elsewhere to get what they WANT and are willing to pay for. It's kind of like a farmer who cuts his fertilizer usage in half and expects to get his full yield. It ain't gonna happen, on the farm or in the newsroom.

Hank Ruark March 18, 2007 11:52 am (Pacific time)

Mike: ID-self to S-N and I'll send PDF of ten-page 2003 classic summary of situation, from Washington and Lee U. Jrnlsm School major report...one of perhaps 50 here. Monopoly is as monopoly does, and sooner or later collapse follows...fact market now mirroring, albeit nobody yet believes it will happen rapidly. People can be misled only so long, even in distorted and perverted markets.

Hank Ruark March 18, 2007 10:31 am (Pacific time)

Mike: Story states immutable facts of denigration now overtaking too many daily newspapers, already well-stated in many studies,books, journals, magazines, other media. Market is appreciating factual Gannett monopoly approach to essential element of our democracy, now under sharp examination by citizens waking from strongly-induced inattention. Facts tell their own story, opinion expresses the meaning seen by that writer. ANY story MUST combine both if writer is human ! Meaning is a purpose of any story. What else impacts your life as much as truly essential information for democratic decision ?

Osotan; March 18, 2007 10:31 am (Pacific time)

I detect a hidden glee in this prsentation. Rip their guts out Henry.They brought it upon their own "arogannett's"blood sucking capitalistic rag of the rich and brainwashed. And congratulations by the way. There is no interactivity" Gannett'snetworks.

Mike Portland March 18, 2007 8:46 am (Pacific time)

Isn't this an op-ed and not a news story? If this is a news story I missed it on CNBC and in the Wall Street Journal.

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Salem, Oregon Newspaper's Parent Company Takes Big Hit on Wall Street

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