- Nicholas Chan
- Communications Director, Office of Assemblymember Alex Lee
- (916) 319-2392
- nicholas.chan@asm.ca.gov
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 statewide like the Mercury News, Times Standard, Salinas Californian, and Desert Sun, among many others. Recently, MediaNews Group acquired The Press Democrat and other North Bay publications as the company — a subsidiary of the hedge fund Alden Global Capital — adds to its growing portfolio of local newspapers.
Read on: Santa Rosa’s Press Democrat Was Just Sold. Locals Are Concerned For the Paper’s Future
AB 611, the Keep News Independent Act, authored by Assemblymember Alex Lee will preserve access to diverse sources of local news by requiring advance notice before selling a local news outlet. The bill passed the Assembly Floor on May 8, 2025.
“Local news is a pillar of our democracy. It’s crucial that we keep local news local, so voters are informed about community issues that matter most to them,” said Assemblymember Lee. “Alden’s acquisition of The Press Democrat and other local newspapers underscore the importance for us to ensure transparency around these transactions, and empower local stakeholders to keep our newsrooms locally focused. AB 611 will give newsroom staff and local communities the opportunity and time to approach the owners with alternatives to keep the outlet independently owned. It’s a common-sense policy that prioritizes high-quality, independent news.”
Investment firms like Alden Global Capital have bought up scores of local newspapers across the U.S. Prior to The Press Democrat’s purchase by Alden’s MediaNews Group, the firm acquired the San Diego Union-Tribune in 2023. The acquisition came out of left field for the newspapers’ staff, and it 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 require 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.”