Tag Archives: David Black

Incestuous bidding on CanWest newspapers, 1st Congressional District politics, etc.

Things must be hectic in Star-Bulletin owner David Black’s world these days as he moves ahead with simultaneous bids for the Honolulu Advertiser and the newspapers of CanWest Global Communications from his home base in Victoria.

The CanWest bidding is particularly incestuous, at least as reported by the Toronto Globe and Mail.

According to the G&M, Torstar Corp. and Black are both among the bidders for the CanWest newspapers.

Torstar is already a minority owner of Black Press with a 20% stake. And Torstar’s bid for CanWest “s believed to be backed by Fairfax Financial Holdings Ltd.”, which is providing the financial muscle for Black’s purchase of Gannett’s Advertiser.

The Globe & Mail reported earlier that Black is probably getting financial backing from Platinum Equity LLC for his CanWest bid. Platinum teamed with Black for the purchase of the San Diego Union-Tribune.

With all the overlapping interests, it feels as confusing as the old Abbot & Costello “Who’s on first?” routine.

The Washington Post political blog, The Fix, has put the Hawaii 1st District Congressional race among “20 House races most likely to switch parties in the November election.”

Blogger Chris Cillizza writes:

Hawaii, however, is shaping up to be a major headache for Democrats for two reasons. First, Case and Hanabusa seem to be moving toward an all-out assault on one another with the likely result being a fractured Democratic party vote. Second, the winner-take-all nature of the special elections means that that sort of splintering of votes between two well-known commodities in the Democratic party could make Djou a winner if he can simply consolidate Republican votes and peel away a few Democratic-leaning independents. (All of the candidates run on a single ballot.)

A loss in a district as Democratic as Hawaii — it is, in fact, President Obama’s home district — would have an effect on Democratic elected officials similar to that of Sen. Scott Brown’s (R) victory in Massachusetts in January. That is to say, panic.

Here’s a list of the 1st District candidates who have filed so far.

And, for browsing, the list of candidates for all state and county offices. The list includes those who have taken out nominating papers but have not yet filed. This is a great list to tuck away for future reference because it contains contact information for all the potential candidates.

More on the Star-Bulletin/Advertiser deal, and Peer News gets another editor

Advertiser business writer Rick Daysog reported yesterday on a key investor backing the Star-Bulletin’s recently announced purchase of Gannett’s Honolulu Advertiser.

In yesterday’s Advertiser, Daysog identified the investor as Fairfax Financial Holdings Ltd. of Toronto, which will also name a director to sit on the board of the company formed to operate the new paper that will merge the two Honolulu dailies.

Daysog’s blog, Biz Bites, followed later in the day with additional details.

Daysog’s blog entry had an interesting choice of headline–“The Advertiser’s new investor”.

Technically incorrect, because the investment apparently is in the new venture that will result when the Star-Bulletin and Advertiser are merged.

The problem is that there’s a lot of uncertainty about what kind of newspaper is going to result.

Will it be more like MidWeek and the Star-Bulletin, emphasizing shorter news stories, more features, arts, and photos? How short-staffed will the newsroom be? In prior deals, Black has started by slashing newsroom jobs and budgets. Will that be necessary in Honolulu? No one, except perhaps Black insiders, has a clue.

On the other hand, I’m told that with Gannett’s salary cuts over the past couple of years, salaries of Star-Bulletin reporters currently exceed those paid in the larger Advertiser newsroom.

In a Q&A published after the deal was announced, Black credited his lack of “overwhelming debt” as the key to his success.

As one columnist observed last week:

Newspapers do not have a profit problem. They have a debt problem. Gannett returned a Q409 margin of 20 percent.

Gannett’s debt has been lowered to “junk bond” status and analysts are beginning to see the possibility the company could default when large notes come due over the next year or two.

Meanwhile, Black and others have kept smaller, community newspapers alive and profitable, according to a story from Portfolio.com.

In terms of his newspaper philosophy, Black spoke both of the “watchdog element” of newspapers as well as being “a booster and being a cheerleader” for “progressive change” in the cities they serve. What does that signal about the shape of news to come? I worry.

Speaking of news…the Peer News web site hasn’t been updated, but editor John Temple’s blog yesterday announced the hiring of Wall Street Journal reporter and columnist, Sara Lin, as assistant editor of Peer News.

Sara was born and raised in Hawaii and graduated from Punahou School, where she was editor of the student newspaper for two years. She’s a graduate of Princeton University, where she majored in Politics and minored in East Asian Studies. While a student, she worked as an intern at Honolulu Weekly and The Honolulu Advertiser. After graduation, she went on to a reporting career at two of America’s great newspapers: the Los Angeles Times and The Wall Street Journal, where today she is a real estate reporter and columnist.