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Deadspin editor quits, blasts G/O management

Discussion in 'Journalism topics only' started by Regan MacNeil, Aug 16, 2019.

  1. Azrael

    Azrael Well-Known Member

    That might be some of it.

    But those numbers prove otherwise. They weren't all that interested in writing standalone politics under the Deadspin umbrella.

    The staff just wanted to dramatize its opposition to the new ownership.

    It did so.
     
  2. The Big Ragu

    The Big Ragu Moderator Staff Member

    They got more than just Deadspin when they bought the company, and those properties have some worth. They supposedly paid significantly less than 1 times sales, which is very cheap, even if the company supposedly lost $20 million last year. Typically media companies fetch 2 1/2 to 5 times sales.

    They may have their heads up their asses about running a media company, but they bought very cheap. They might be able to salvage their investment, simply because they didn't pay a lot. The "private equity guys" you might be able to say "should have done more homework when they decided to invest in this," were actually Univision, the original purchaser that bought it out of bankuptcy. They paid $135 million. When you combine the operating losses they ate before they bailed, and the money they lost on the resale, it may have cost them more than $100 million.
     
  3. Small Town Guy

    Small Town Guy Well-Known Member

    And the new guy had to do an online apology already and beg forgiveness from the mob. And if he was a scab (as some people screamed at him, though I still don't get how), what about the Gawker writers and editors who stayed on after Craggs and Read resigned following the story that outed Geithner's brother and supported his blackmailer? They took a stand too. Was anyone who didn't die on that hill a scab?
     
  4. CD Boogie

    CD Boogie Well-Known Member

    The guy should have had more backbone and not freaking resigned just bc strangers were mean to him online. Really, that's the kind of freaking journalists we're developing nowadays? What a wimp.
     
  5. poindexter

    poindexter Well-Known Member

    I know perfectly well who Univision was, and what they bought it (and sold it) for.

    You tell me if you think there is a difference in what Great Hill (spelling?) Partners calculated w/r/t Deadspin when they bought the company for pennies on the dollar from Univision - and what it looks like today. You think the projected IRR is going to be close?
     
  6. SoloFlyer

    SoloFlyer Well-Known Member

    From the story:
    Whatever reasons G/O Media has for sticking to sports, or a policy that has led to the loss of half its editorial staff, the data on Deadspin’s own website do not support them.

    They quit because of a litany of things. This was the final straw.

    As Laura Wagner's August piece on Deadspin details and the NYT article corroborates, multiple editorial staff - including former Deadspin editor-in-chief Megan Greenwell - had previously resigned because of interference from the new ownership group. Where the C-level executive suite once contained a diverse selection of people, the new ownership group filled it with white men of the same background who had all been friends and coworkers of Jim Spanfeller. The executives don't communicate effectively with staff (not unusual, but a problem).

    Read Wagner's article about Spanfeller. The man is on a Gatehouse/Gannett level of not knowing what he's doing.

    There was also a survey placed on Deadspin regarding content that was posted without approval from the editorial staff, which the union had bargained for in its contract. Spanfeller also tried to stop Wagner's story, saying the company shouldn't report on itself (something Deadspin/Gawker have done since its inception).

    As someone who has been in a similar situation, when management consistently lies to you, keeps you in the dark, moves tangible goals without warning, and interferes in the editorial process, morale plummets. Eventually you break. You either accept the shit you're fed, or you quit. Many people aren't in position to quit. The Deadspin staff was.

    This was never about one thing. It never is. It's about a pattern that showcases a lack of integrity, a failing of journalistic principles, and a work environment that is clearly untenable. Those are conditions in this industry that should never be acceptable.
     
  7. TigerVols

    TigerVols Well-Known Member

    Lost in all the latest navel-gazing about Deadspin and the guy who got "ratioed into outer space" for writing about KD v Draymond: He apparently composes his articles in Word.

    Let that sink in for a moment: An Internet author using Word? WTH?
     
  8. typefitter

    typefitter Well-Known Member

    I saw something about this the other day—maybe it's The New Yorker who is still allowed to use Word, when the rest of Conde Nast has to use Google Docs, I think?

    I use Word. Have never used anything else. Terrified of the idea of using anything else. Had no idea there was anything else.
     
    JackReacher and PaperDoll like this.
  9. The Big Ragu

    The Big Ragu Moderator Staff Member

    I don't know what they can salvage from it. They likely didn't have a plan to be in it for the long term -- typically they are looking at a few years with something like this. I don't know enough about their specific business (it's private), and I know barely enough about the landscape for digital media companies as it exists right now (forget 6 months ago when they bought) to really say for sure. I am spitballing. Things seem to be pretty bad and getting worse as the bubble surrounding the valuations a lot of things were fetching has started to deflate. Just look at Vice Media and BuzzFeed. Two, three years ago, they were throwing around valuation numbers in the BILLIONS, and had some whales throwing a lot of money at them (THAT was the stupid money, because we are talking billions of dollars). Those days are over, and now they are just companies that have never made money and continue to lose money.

    In the case of Nick Denton's sites, they were never huge money makers, but he was able to keep things fairly lean, never grew too far out in front of his skis, and he generated enough advertising revenue to actually earn a profit by all accounts. So anyone looking at the assets would be doing it with an eye toward whether 1) They think the irreverent, snarky blogger model can still work the way it did in 2005 or 2010, if done right, and 2) how much the site names are worth above trying to start up from scratch.

    If you were talking about $20 million worth of losses on $80 million of sales (last year, as it has been reported), there very well may be someone out there who thinks they can turn it around, if Great Hill wants to sell. And as much as some people think the staff that just quit at deadspin can't be replaced or replicated, someone could be willing to try. Let's say -- and I am just making up numbers -- that this whole thing costs them half their sales (which would be a devastating hit). If they can find someone willing to pay even 1 to 1 1/2 times sales to take a stab at it, it would salvage most or all of what they are into it for. They bought cheap.
     
  10. Azrael

    Azrael Well-Known Member


    Ditto.

    I understand how and why companies want to use Google Docs, but I've never cared for it.

    And a thousand years ago, back before Microsoft muscled everyone else aside, I used Word Perfect and Professional Write.
     
  11. poindexter

    poindexter Well-Known Member

    Well, salary expense for the 4q will be a lot lower :D
     
  12. Double Down

    Double Down Well-Known Member

    Right before I left the Sun, we were told to write in some internal server that let editors see/edit your copy as it was being composed. (Like Google Docs with a touch of Big Brother.) I flat refused. I can’t imagine anything more anxiety-inducing for a writer than someone virtually standing over your shoulder and saying “Hmm, I think you might want to move this up higher before you get to the next section.”
     
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