Illinois Newspaper Sale Tests New Law Aimed at Local Ownership
A recent sale of several Illinois newspapers by better Newspapers Inc. to Paxton Media Group is putting a new state law designed to encourage local ownership to the test, raising concerns about transparency and potential enforcement. The law, passed in response to similar acquisitions and subsequent layoffs, requires companies to notify the Department of Commerce and Economic Chance (DCEO) 120 days before a sale, perhaps allowing local buyers time to make a competing offer.
State Senator Steve Stadelman, a former TV anchor in Rockford and sponsor of the legislation, expressed concern that media companies may be unaware of the law’s requirements. He indicated the state needs to proactively promote the law and suggested the General assembly may consider strengthening it with follow-up legislation to establish a clear enforcement mechanism. “I think that’s something I’ll have discussions with over the next weeks and months to see what we need to do to update and review legislation to make sure … that there are incentives for organizations to follow the law,” Stadelman said.
The sale included The Morning Sentinel (Centralia), Union Banner (Carlyle), Washington County News (Nashville), Greenville Advocate, Salem Times-Commoner, the Breeze Courier (Taylorville), robinson Daily news, and The Daily Record (Lawrenceville). Paxton Media Group was also involved in a 2023 purchase of The Southern Illinoisian in Carbondale from Lee Enterprises, a deal that followed with the layoff of all newsroom employees, fueling concerns about the future of local journalism.
Five county clerks in areas served by the sold newspapers reported they did not receive official notification of the sale from Better Newspapers, including the St. Clair County clerk’s office,where Better Newspapers is headquartered. Todd Marver,a reporter for the Washington County News,confirmed that employees were also not informed.DCEO also stated to marver that it did not receive any notice from Better Newspapers.
Marver also noted recent layoffs within the newspapers, expressing concern that employees were not given the 120-day notice stipulated by the law, which would have provided them with more time to seek new employment.
While Paxton Media Group has as hired new reporters at The Southern Illinoisian, Stadelman emphasized his broader concern about the impact of newsroom layoffs on communities. He clarified the law isn’t intended to block out-of-state or larger companies from acquiring newspapers, but rather to provide an opportunity for local ownership. “I really truly believe that local ownership, local involvement leads to better coverage, more of a commitment to covering local news in a community versus a corporation that may have other financial interests and doesn’t necessarily care about what’s happening on the ground locally,” Stadelman said.
Representatives for Better newspapers and Paxton Media Group did not respond to requests for comment.
The sale occurs amidst a significant decline in Illinois’ newspaper industry. A report released last year by the General Assembly’s Local Journalism Task Force revealed that one-third of the state’s newspapers have closed as 2005, resulting in an 86% decrease in newspaper jobs over that period.