Local Journalism under Private Equity Ownership
63 Pages Posted: 11 Oct 2021 Last revised: 4 Feb 2022
Date Written: February 1, 2022
Local daily newspapers historically played an important role in U.S. democracy by providing citizens with information about local policy issues. In recent decades, local newspapers have struggled to compete with new online platforms. In the first study of private equity (PE) in a struggling industry, we find nuanced effects. PE leads to higher digital circulation and lower chances of newspaper exit. However, the composition of news shifts away from local governance, the number of reporters and editors falls, and participation in local elections declines. The results have implications for knowledge about local policy issues and highlight trade-offs surrounding media ownership.
Keywords: Private equity, newspapers, media, local journalism, civic engagement
JEL Classification: G23, G32, H42, L82
Suggested Citation: Suggested Citation