Daily Clips: Lee Enterprises and Alden Global

December 3, 2021
Articles sourced from Daily Clips

Local News Outlets Could Reap $1.7 Billion In Aid

As the rise of digital media progresses, news outlets across the country have been struggling due to a massive loss in ad revenue streams. To combat the decline of news, and more importantly local news, the House of Representatives passed the Build Back Better Bill on November 19th. If the bill gets passed by the Senate, it will provide $1.67 billion over the next 5 years for newspapers, websites, radio/TV stations, and other outlets that focus on local news coverage. 

Media outlets funded by political action committees will not be eligible, and the relief for local news outlets will come in the form of a payroll tax credit.

The New York Local News Act

The New York Local News Act was introduced in the New York State Senate and Assembly by Senator Rachel May and Assemblywoman Anne Kelles. The act proposes support to local news outlets in the form of grants and partnerships with local universities and local non profit organizations.

Sen. Shelley exclaims, “I look forward to seeing what kind of collaborative efforts can be established between colleges and universities and local news outlets… At the same time the very clear language in the bill is that a grant this commission provides does not include any government oversight over content”. 

Lee Enterprises and Alden Global

Lee Enterprises denied Alden’s offer of buying the company in cash for $24 a share. After the offer was denied, Alden nominated 3 directors for Lee Enterprises’ board. 

“Alden’s hope is that the board engages meaningfully and expeditiously with Alden towards a transaction in the best interests of Lee’s shareholders…”. 

The reason Lee denied Alden’s offer was the fact that Alden failed to comply with Lee’s bylaws. After Lee’s completion of its review of  Alden’s purported notice, Lee will provide its shareholders with further information.

The European Newsroom

16 state news agencies in the European Union will come together come January 2022 to create the “European Newsroom”. Leading the initiative is the German Press Agency, alongside many other press agencies whose governments suspended the agency’s funding. 

Several newsrooms in the EU have experimented with transnational collaborations, however the European Newsroom will be the first attempt at covering all 27 EU states. The creation of the European Newsroom is part of a larger effort to bring financial sustainability to European journalism, as well as the preservation of press freedom. 

Within the next year, the ‘European Media Freedom Act” will also be presented. This act will protect journalism from “interference from foreign actors”, and will stop larger media companies from buying out smaller media companies.

Shifts in Spending due to Omicron

After the Covid 19 variant known as Omicron made headlines, analysts project a shift in spending during the holiday season. Consumers will be seen buying tangible items such as electronics, toys, and apparel instead of more experience based gifts such as restaurant gift cards, vacation vouchers, and concert tickets.

Matt Shay, CEO of the National Retail Federation, said to reporters, “We know, unfortunately, that when the variants have had a real impact on the economy, the goods side of the economy has actually benefited from that because people change behavior away from the experience side of the economy and spend more time and more dollars engaged in the goods side of the economy”.

Holiday sales are expected to grow an estimated 8.5% to 10.5% this year in November to December, which would be an all time high standing at a final sum of $843.4 billion to $859 billion.

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