This is a breaking news story that is being updated.
The Dallas Morning News, which has been locally owned for 140 years, has been sold to Hearst, a media company based in New York City.
The Morning News is the only daily newspaper in Dallas and was one of the last independently owned daily papers in the region.
The Dallas Times-Herald shut down at the end of 1991. The Fort Worth Star-Telegram was sold to Knight-Ridder in 1997 and was acquired by McClatchy in 2006.
The Dallas Morning News was founded in 1885. DallasNews Corporation is valued at $74.9 million and its shareholders will get $14 per share when the sale closes in September or October, according to a press release from the paper. The deal was unanimously approved by both boards.
Hearst has 28 daily newspapers and 50 weekly publications. Its portfolio includes three other major Texas newspapers: Houston Chronicle, San Antonio Express-News and Austin American-Statesman.
The organization currently has more than 400 employees, including 157 in the newsroom, according to a press release from the paper.
Losing local ownership
Rick Edmonds, a business analyst for Poynter, a journalism non-profit, said chains like Hearst can more easily implement expensive technology and streamline business operations. But readers do benefit from local ownership.
"There’s a big advantage to being local and having the leadership right there in the community - both in terms of insight into what’s important in that community and, to some extent, reader loyalty," he said.
Readers might prefer local ownership for their paper. But being sold to a media conglomerate like Hearst is a better alternative than private equity, Edmonds said.
"Hearst is a particularly rich corporation with a lot of different businesses," Edmonds said. "They’re the kind of owner you’d like to be sold to if you’re sold."
Grant Moise, chief executive officer of DallasNews Corporation and publisher of The Dallas Morning News, said Hearst supports local reporting.
“For 140 years, The Dallas Morning News has earned enviable status as one of the most trusted and distinguished daily newspapers in the U.S. We’ve done so by focusing on the issues that matter most to our North Texas community and by embracing the kind of objective, accountable and skillful reporting at the heart of impactful journalism,” he said in a statement.
“The Hearst family of newspapers shares these values. Their resources, expertise and track record of supporting — and investing in — local independent journalism will ensure The Dallas Morning News thrives for decades to come.”
A bright spot
Jeff Johnson, president of Hearst Newspapers, echoed Moise.
“Hearst Newspapers is committed to supporting The Dallas Morning News’ continued success through smart investments in their digital strategy, compelling journalism and expanded audience reach,” Johnson said in a statement.
Geoff Campbell, is a lecturer at the University of Texas at Arlington, where he teaches journalism courses.
“I think one of the bright spots is that Hearst says that they want to continue that strong local coverage,” Campbell said.
“If true, that'll be great. However, Hearst, like any corporation, is going to want to make money and news gathering is not cheap and people increasingly are unwilling to pay for their news,” he said.
The news comes less than two weeks after Colleen McCain Nelson was named The Morning News’ new executive editor.
NOTE: KERA collaborates with The Dallas Morning News on Arts Access, an arts journalism partnership.
