Shadowy Firms Hollow Out Struggling Newsrooms to Extract Profits

• Media sector in the US has seen massive layoffs recently, with big names like Vice, Deadspin, etc. gutting newsrooms. This is driven by private equity firms and hedge funds that now own many publications.

• These shadow banks capitalize on struggling media outlets to make money, similar to the 2008 housing crisis when banks seized distressed homes. They lay off staff to cut costs and squeeze out revenue.

• Firms like Alden Capital, Apollo Global Management, and Fortress Investment Group have extracted profits while decimating newsrooms across the country. Many profitable publications have still faced huge layoffs under hedge fund ownership.

• Executives at many media companies are seeing soaring salaries and net worths even amid layoffs of average staffers. The system enriches investors while precarious employees suffer job and pay cuts.

• Attempts to legislatively curb private equity control of media have failed so far. Critics see an institutional failure to stop these firms from gutting an essential industry.