The Keep News Independent Act Passes Labor Committee

The consolidation of local news by large conglomerates is a threat to the foundation of American democracy. Media chains managed by hedge funds and private equity have a track record of reducing costs and maximizing profits by gutting local newspapers. Layoffs, closures and consolidations of newsrooms are depriving the public of quality local news coverage.

Across the U.S., just 10 companies controlled over half of all daily newspapers nationwide in 2024. These firms include Gannett and MediaNews Group, which own newsrooms across California like the Mercury News, Times Standard, Salinas Californian, and Desert Sun, among many others.

AB 611, the Keep News Independent Act, authored by Assemblymember Alex Lee will preserve access to diverse sources of local news that reflect and respond to community needs. The bill aims to prioritize locally owned and operated newsrooms in communities, fostering community-centered journalism. The Keep News Independent Act passed the Assembly Labor and Employment Committee and will be heard in the Judiciary Committee on April 29. 

“Local news is the cornerstone of a healthy democracy,” said Assemblymember Lee. “But media conglomerates, hedge funds, and private equity firms have decimated community journalism. These corporations have taken over swaths of newsrooms, extracting profits at the expense of the communities they serve. The Keep News Independent Act gives the people in the newsroom and community an opportunity to keep the outlet locally focused. AB 611 is an important step to preserve journalism’s role of serving the public good.” 

Investment firms like Alden Global Capital have bought up scores of local newspapers across the U.S. including California. In 2023, Alden’s subsidiary MediaNews Group acquired the San Diego Union-Tribune, which came out of left field for the newspapers’ staff. This resulted in buyouts and staff layoffs. Similarly, media giant Gannett slashed newspapers and staff following a 2019 merger.

The concentration of newsroom ownership by media chains, private equity, and hedge funds has far-reaching consequences for the quality of local news and the communities they serve. The severe loss of professional expertise leads to gaps in local news coverage. Residents become less informed about local policies and elections that affect their daily lives. Voter turnout declines and elections become less competitive. At the same time, syndicated news focuses much more on national rather than local politics, deepening polarization and partisan politics. 

As such, preserving independent, high-quality local journalism is essential to ensuring informed, engaged, and empowered communities. AB 611 will promote employee and small business ownership of newsrooms by requiring local media outlets to provide notice to staff and subscribers of their intent to sell at least 120 days before transaction. 

“AB 611 is about giving communities a fighting chance to protect something fundamental to our democracy—trusted, local journalism," said Maya Chupkov, Media & Democracy Program Manager at California Common Cause. "When hedge funds quietly acquire local newspapers and gut their newsrooms, the public loses access to information that helps them vote, advocate, and hold power accountable. This bill ensures transparency and gives time for local stakeholders to step in before it’s too late. California Common Cause is proud to support this critical step toward keeping news in community hands.”