Connect with us

Business

Column: L.A.'s ultimate heartbreak industry isn’t Hollywood. It's local journalism

Published

on

Column: L.A.'s ultimate heartbreak industry isn’t Hollywood. It's local journalism

Whenever I think of the perilous state of local news, I think of Delicious Pizza in West Adams.

Great pizza! Small space, cool atmosphere. In the fall of 2017, I found myself there along with other journalism castoffs cursing the news gods.

I had just resigned as editor of OC Weekly after I refused to lay off half the staff. Daniel Hernandez was out of a job at VICE News after nearly four years there. Julia Wick had led the original LAist until its owner shut down the website because he claimed it wasn’t economically successful. Former LA Weekly editor-in-chief Mara Shalhoup was axed alongside most of her writers and editors after a new owner acquired the venerable alt-weekly.

Over beers and slices, we laughed and shared stories and fretted about the eternal erosion that is American journalism. None of us were about to give up on our beloved profession, though. There was talk of creating our own publication, but nothing serious. Instead, we hugged and went on to the rest of our lives.

Today, Mara is ProPublica’s South editor. Daniel edits The Times’ food section. Julia is on The Times’ 2024 election team. I’m a Times columnista, of course, frequently using Southern California’s past as a prism to understand what’s happening now and what might occur in the future.

Advertisement

And boy, does it not look good for local journalism — again.

Last month, the nonprofit Long Beach Post, which expertly covered the port city while the Press-Telegram atrophied, laid off nearly everyone. The publication’s board of directors maintained the move was necessary to save it from financial ruin — but former staffers insist it was retribution for their attempt to form a union.

Reporters for Knock LA, which focuses on social justice issues and law enforcement corruption, accused the publication’s sponsors, the leftist group Ground Game LA, of exiling them after they asked to spin off Knock into its own standalone entity.

For the record:

4:09 p.m. April 17, 2024An earlier version of this article said that Ground Game LA is the fiscal sponsor of Knock LA. Knock LA is part of Ground Game LA, and the two organizations share funding.

Advertisement

In the for-profit world, L.A. Taco, which centers food coverage while covering working class communities across Southern California, furloughed nearly everyone on its small team. Editor-in-chief Javier Cabral said they would be laid off if the publication isn’t able to hit 5,000 members by the end of April. (They were at 2,800 as of Monday). This follows the shuttering of one of California’s oldest continuously operating newspapers, the Santa Barbara News-Press, last year.

And, of course, there’s this paper. More than 100 of my colleagues were laid off last summer and earlier this year. Others took buyouts, and it seems recently that farewell emails from colleagues moving on to other jobs or retiring hit my mailbox daily.

It’s easy to portray what’s going on in local media as unprecedented and catastrophic, especially in the face of similar layoffs nationwide during an election year where accurate facts and nuanced coverage matter more than ever. But Southern California has always been an ossuary of failed publications done in by apathetic readership, clueless owners or a combination of both.

A 2006 rally at De La Guerra Plaza in front of the Santa Barbara News-Press newspaper’s offices. The newspaper, one of the oldest in California, ceased publishing last year.

(Michael A. Mariant / Associated Press)

Advertisement

Every generation in L.A. seems to suffer a journalism mass extinction event. In addition to what’s happening right now and what happened in 2017, there was the shuttering of two alt-weeklies, Los Angeles CityBeat and the Long Beach-based The District Weekly, at the turn of the aughts. I remember the demise of La Banda Elastica and Al Borde, two Spanish-language publications that focused on rock en español through the late 1990s and 2000s. Older folks will remember the end of the L.A. Herald Examiner in 1989, whose grandiose downtown headquarters are now used as a satellite campus by Arizona State University.

L.A.’s heartbreak industry isn’t Hollywood; it’s journalism. To paraphrase what the late A. Bartlett Giamatti said about baseball, it’s designed to break the hearts of those who work it.

You join the profession knowing that long hours, low pay and no respect from the public is the norm, yet you jump in anyway. You revel in your colleagues, your shared sense of mission and the stories you do — but then the reality of economics sets in, and you realize the good times won’t last. You wonder why readers don’t subscribe, why editors and publishers don’t innovate. You see co-workers lose their jobs or leave the profession — and then it’s your turn, one way or another.

It’s easy to armchair quarterback why publications fail. Blame technology, fragmented audiences, a lack of trust in news — it’s all of that, and more. But these conditions existed before photos appeared in newspapers, and will persist long after whatever Elon Musk inserts in our brains so we can’t quit X.

Advertisement

What’s going on in Southern California journalism is sadly familiar — yet not hopeless. There is something new with this generation of journalism orphans. In the past, we downed shots and mourned as our publications died. Now, to paraphrase another literary luminary, Dylan Thomas, reporters are not going gentle into that good night.

Long Beach Post and Times staffers have publicly protested against their bosses. Knock L.A.’s banished writers and editors are shaming their former benefactors online. L.A. Taco is asking for money like an NPR host during a fund drive pounding nitro cold brew.

“We went public with our dire situation, because how can you expect help if you don’t ask for it?” said Cabral, 35, who I’ve known since he was a teenager with his own food blog. “Journalism for me has always been a fleeting career in flux that pulls the rug right under you when you start to get comfortable.”

I wish all of these folks well as they try to make it, including my colleagues at The Times, which has been unionized since 2018 and where we’ve worked for almost a year and a half without a contract. But even if we all fail, the dream to do good journalism in Los Angeles will never die. More publications are already rising.

The Los Angeles Public Press is barely a year old but is already making an impact with its coverage of the San Fernando Valley and Southeast L.A. County. Caló News, which focuses on Latino issues, will launch its own initiative to cover southeast L.A. County this summer. Newsletters run by individuals are filling in news holes and getting subscribers in the process. Hyperlocal publications like The Eastsider and This Side of Hoover are still informing readers about their communities.

Advertisement

Last month, I attended a forum at City Club LA hosted by the nonprofit Latino Media Collaborative, which sponsors Caló News, about what it deemed a “crisis” in Southern California journalism. Among the speakers were former La Opinión publisher Monica C. Lozano and California Community Foundation Chief Executive Miguel A. Santana. The conference room was packed with reporters young and old hoping to plug into the millions of dollars that local and national philanthropic organizations are planning to spend on L.A.-focused news operations in the coming years.

I wish them well, too — because someone has to succeed in this cursed industry, right? Right?

Business

Read Nick Bilton’s Letter to Scott Pelley

Published

on

Read Nick Bilton’s Letter to Scott Pelley

Dear Mr. Pelley:

I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.

Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.

Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.

Sincerely,

Nick Bilton

Executive Producer, 60 Minutes

Continue Reading

Business

Aspiration co-founder sentenced to 14 years for fraud

Published

on

Aspiration co-founder sentenced to 14 years for fraud

The co-founder of Aspiration, Joseph Sanberg, was sentenced to 14 years in prison on Monday after defrauding investors and lenders of over $248 million.

The startup, an eco-friendly digital banking company boasting fossil fuel-free investments, carbon offsets for gas purchases, and a debit card with cash-back benefits for shopping at clean companies, was founded by Sanberg and Andrei Cherny. Cherny left the company in 2022 and has not been charged.

Sanberg, an Orange County native, pleaded guilty to wire fraud in October after being arrested in March last year. Aspiration subsequently filed for bankruptcy and liquidated all of its assets by July.

Sanberg and venture capitalist Ibrahim AlHusseini, who also faces charges, together forged a series of bank statements in order to obtain loans. From 2020 to 2021, the pair forged AlHusseini’s bank statements to show millions of dollars in assets in order to obtain millions of dollars from lenders.

Advertisement

Additionally, they forged a letter from their audit committee stating that $250 million in funds were available, when in reality Aspiration had less than $1 million. The amount of loans defrauded exceeded $248 million.

In 2021, Sanberg artificially inflated Aspiration’s 2021 revenue by $44 million by recruiting 27 fake customers to sign letters of intent pledging tens of thousands of dollars per month for tree planting services. Sanberg himself funded the contracts and used the inflated revenue numbers to obtain more loans.

The charges sparked an NBA investigation into salary cap allegations due to Aspiration’s connections with Clippers owner Steve Ballmer.

Ballmer personally invested $60 million in Aspiration, all of which was lost. He is now the target of a civil lawsuit alleging his participation in the scheme. Ballmer denies the allegations.

The team announced a $300-million sponsorship deal with Aspiration, and Clippers player Kawhi Leonard signed a four-year, $28-million marketing contract with the company, which reportedly performed no duties. The issue has raised concerns about how players are circumventing the NBA’s salary cap.

Advertisement

The team lost the $300-million sponsorship deal and an additional $20 million paid for carbon offset purchases.

Continue Reading

Business

Monterey Park takes landmark vote on banning data centers

Published

on

Monterey Park takes landmark vote on banning data centers

Residents in the city of Monterey Park will be the first in the nation to vote on a permanent ban on data centers Tuesday.

If approved, Measure NDC would prohibit data centers within the city limits and could only be overturned by another vote.

Yard signs saying “No Data Center” in English and Chinese with images of dragons line sidewalks in the San Gabriel Valley city.

As a wave of data center opposition sweeps the country, numerous towns and counties across the U.S. have instituted temporary moratoria and other restrictions on the facilities. But only a handful have instituted indefinite bans, and just four other towns have sent related matters to the ballot.

Advertisement

Supporters are hoping the vote will set a precedent for the rest of the region, where residents are fighting proposals in Vernon and City of Industry.

“This is about as permanent a ban as we can get,” said Steven Kung, co-founder of the group No Data Center Monterey Park. “Winning Measure NDC would send a huge message to the rest of the San Gabriel Valley about how residents don’t want data centers.”

The ballot measure emerged from the fight against a 247,000-square-foot center proposed in 2024 by the Australian-owned investment firm HMC StratCap for a residential area in Monterey Park.

The facility would have sat less than 500 feet away from the nearest home and used three times the electricity of the 60,000-person, predominantly Asian American city.

While the developer touted the potential for jobs and tax revenue, residents expressed concerns about noise and air pollution, rising electricity rates and a potential to lower property values.

Advertisement

The company pulled its plans in late March following public outcry and a March 4 city council vote to extend a temporary data center moratorium and place a ban on Tuesday’s ballot.

In a letter to the city council, HMC StratCap said it would pursue a different use for the land and would not engage in a ballot measure fight.

The city council later banned data centers indefinitely, the first in California to do so, said Mayor Elizabeth Yang. But she’s still been out campaigning for the measure with all four other council members.

“If a council puts in an ordinance, a future council can reverse it too,” said Yang. “With the ballot measure, unbanning it is a lot harder because you need the entire city to vote on it.”

The measure proposes the ban “to protect air quality, drinking water resources, and public health” and “prevent impacts to electricity and water rates.”

Advertisement

While California places third in the country for existing data centers with about 300 facilities, it hasn’t been a hot spot in the recent AI-driven data center boom. High electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in Virginia, Texas, Georgia, Illinois or Arizona.

“Most of California’s data centers are small by today’s standards,” said Shaolei Ren, an engineering professor at UC Riverside who studies how to reduce the environmental impacts of data centers. “Ten years ago, they would be medium-sized, but the power demand for new AI data centers has increased a lot.”

The average operating data center demands 45 megawatts, according to the Washington Post, while the average planned one would draw 430 MW. The one proposed for Monterey Park would have required about 50 MW at peak demand.

As proposals crop up in SoCal, they’re met with fierce opposition. Montebello, El Monte and Baldwin Park have all enacted temporary moratoria, and Alhambra recently banned data centers as part of a zoning code update. City of Industry, Vernon, City of Commerce and Santa Fe Springs are moving in the other direction, trying to court developers and streamline data center approvals. Community groups are fighting that.

Outside the San Gabriel Valley, residents of Coachella and Imperial County are showing up in droves to protest local proposals.

Advertisement

Matthew Shaw, a volunteer with the Coalition for Responsible Data Center Development, who recently published a report on opposition to AI data centers, said a vote to ban them in Monterey Park “would lead to copycats, partially because so many groups are just opposed to any data center development at all.”

While there is no formal opposition to Measure NDC, some building trades like Ironworker Local 433 supported the Monterey Park data center when it was still live before city council. Those in the data center industry are lamenting the state of public opinion.

“These are multi-billion-dollar assets that are built by multi-trillion-dollar companies. These things will get done,” said Mehdi Paryavi, chairman of the International Data Center Authority. “My biggest problem is that our industry does not invest enough in community engagement.”

Paryavi said towns that seek to limit data centers are missing out on thousands of jobs generated by data center construction, operations and customers, as well as faster artificial intelligence speeds and better performance.

Kung said local community organizers are “looking at the empirical evidence” and seeing a ban as a win.

Advertisement

“We’ve never seen a city that embraces a data center and is like, ‘Look how our quality of life has increased, look how all the revenue has gone into citywide improvements,’” he said. “That just doesn’t exist.”

Continue Reading
Advertisement

Trending