After William Randolph Hearst flunked out of Harvard in the 1880s, he pursued a new career path, asking his wealthy father for only one thing: the San Francisco Examiner.
Young William didn't stop with the Examiner — over his lifetime, he accumulated dozens of newspapers nationwide. Eventually, one in five Americans regularly read a Hearst paper.
That seems like a lot of power and influence, and it was. But it's nothing compared to what the heirs to Hearst's media mogul mantle are doing today.
In fact, the Hearst Corp. is working with another acquisitive newspaper magnate, William Dean Singleton, to lock up the entire Bay Area daily newspaper market. If the project succeeds, one of the most sophisticated, politically active regions in the nation may have exactly one daily news voice.
That worries Clint Reilly.
The political consultant turned real estate investor has sued the Hearst Corp., owner of the San Francisco Chronicle, for the second time in a decade to stop a partnership he fears will eliminate the variety of voices among newspapers in the Bay Area.
It's an amazing story, full of politics, big money, secretive arrangements, and juicy executive bonuses. What's at stake? Control over one of the most lucrative businesses in Northern California.
But for the most part, you aren't reading about it in the daily papers — which means you aren't seeing it on TV or hearing about it on the radio.
In fact, the blackout of the inside details of the Singleton deal and Reilly's effort to stop it is one of the greatest local censored stories of the year — and the way the press has failed to cover it demonstrates exactly what's wrong with monopoly ownership of the major news media.
The story began in the spring when one of the nation's more respected newspaper chains, Knight Ridder, was forced to put itself up for sale after Bruce Sherman, a prominent shareholder, decided that the company's relatively healthy profit margins (and dozens of Pulitzers) were simply not enough.
It's the nature of publicly traded companies to be vulnerable to shareholder insurrections, unless they have multiple classes of stock. Knight Ridder didn't, and although its former chief executive, P. Anthony Ridder, later said he regretted the sale, Knight Ridder went on the block.
The Sacramento-based McClatchy chain bought the much bigger Knight Ridder but needed to sell some of the papers to make the deal work.
In the Bay Area, Knight Ridder's two prime properties, the San Jose Mercury News and the Contra Costa Times, were bought by MediaNews Group, the Denver-based conglomerate run by Singleton. That was a problem from the start: Singleton already owned the Oakland Tribune, the Marin Independent Journal, the San Mateo County Times, and a series of smaller local papers on both sides of the bay. The two former Knight Ridder papers would give him a near-monopoly on daily newspaper ownership in the region; in fact, there was only one daily in the area that would be in ...
1. You say that "the Examiner had, in fact, abused the news to advance its business interests." Actually, the testimony was that the Examiner was providing positive coverage on its editorial page for favors from then Mayor Willie Brown. I'm not excusing this sin, but you've mistated what happened.
2. You say "An Examiner editor admitted in open court ..." Actually, the admission came from Tim White, who was then the publisher of the Examiner. Phil Bronstein was the editor and never made any such statement.
I'm glad you're writing about this subject -- it certainly deserves more scrutiny than it has received -- but errors like this, and the confusion between the Grillys -- allow Hearst and MediaNews to discredit your entire story.
Tim Redmond
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