new Dow Jones owner says he will sell Seacoast Media’s parent company

Rupert Murdoch’s recent coup of Dow Jones & Co., publisher of The Wall Street Journal, is likely to have a significant impact on global media. Murdoch’s vast media empire News Corp., which already owns the Fox News Channel, MySpace, newspapers in Australia and the U.K., and several satellite television broadcasters, now, for the first time, controls a major paper based in the United States.

Murdoch’s $5 billion purchase of Dow Jones also puts him in possession of a number of smaller newspaper groups, including Ottaway, parent company of the Seacoast Media Group, which publishes the Portsmouth Herald, The Exeter News-Letter, Hampton Union, Rockingham News, York Weekly, York County Coast Star, Beachcomber and iT’s Dover.

Murdoch announced last week that he plans to quickly sell Ottaway, leaving Seacoast Media’s future ownership up in the air. But, no matter who takes over, publisher John Tabor vowed that the transaction will have little impact on the publications’ news coverage. “Many of our staff have a long, long tenure here, and we’re very committed to being a unique and vital source of news every day for these communities, and that continues even as owners change,” Tabor said in a recent interview with The Wire.

Although Murdoch has denied the accusations, the 76-year-old conservative is widely accused of preventing journalists from reporting news stories that might be in conflict with his business interests. The Ottaway family was vocal in its opposition to the sale but could not prevail upon the Bancroft family, which has controlled Dow Jones for generations, to prevent it from happening.

Howard Altschiller, executive editor of Seacoast Media, said he does not expect the change in ownership to have much of an impact on local reporters. But, the new owners, whoever they end up being, will likely leave a mark on Seacoast publications. “I think every company has its own approach to things and does things its own way,” Altschiller said. “Inevitably, a company puts its stamp on the property that it owns.”

Altschiller noted that Ottaway made significant changes to the Portsmouth Herald when it took over ownership in 1997. The Exeter News-Letter also underwent changes when ownership switched in the mid-1980s, as did York Weekly and York County Coast Star when they came under Seacoast Media’s control in 2001.

Although no one has publicly expressed interest in purchasing Ottaway, Tabor said he has a couple of theories as to who might take over ownership. One strong possibility is Community Newspaper Holdings Inc., which currently owns publications in 24 states, including the Eagle Tribune, Salem News, Gloucester Daily Times and  Daily News of Newburyport in Massachusetts, as well as Derry News in New Hampshire. Another possibility is GateHouse Media, which owns publications in 20 states, including more than 100 daily and weekly publications in Massachusetts. Both companies, according to Tabor, are “expansion-minded.” He also noted that both companies tend to leave local management in place.

Seacoast Media Group’s chief rival, Foster’s Daily Democrat, is a family-owned publication. Asked if there are advantages to being independently owned rather than owned by a large company, Tabor said both types of publications must follow the same basic rules of success.

“Any publication company only succeeds when it produces the best journalism, the best quality products and the best service. That’s the only way to make revenue grow, and some family companies do that very well, some family companies don’t sustain that. Some public companies or highly leveraged private companies do that very well, some don’t,” Tabor said. “I think publishing is a talent-driven business, and you have to put out the best quality product and give the best service, and that has to happen locally, on the ground.”

Although some readers have a sentimental preference for publications owned by families with deep roots in the community, not all owners who inherit a family business know how to run it, Tabor added. Furthermore, the Bancroft family’s sale of Dow Jones demonstrates that a family owner’s commitment to a publication can change with passing generations.

Foster’s executive editor Rod Doherty said family papers and corporate-owned papers each have their benefits. “I think the benefit of the family paper is that you have more control. There’s less of a sense of the profit margin, more of a sense of obligation and loyalty to staff,” Doherty said. “We have our tough times, and we’re going to continue to have them as the industry changes. But it’s still a great tradition to be part of a family, and we’ll just do the best we can.”

Doherty added that corporate owned papers have the advantage of support from the company’s headquarters for things like Web sites and creative enhancements to the publications. Murdoch’s purchase of Dow Jones could revitalize the newspaper industry, Doherty surmised, if he successfully enhances the electronic presence of printed publications. A serious challenge facing newspapers, especially smaller publications that struggle to attract national advertisers, is developing advanced Web sites while still putting out a hard-print paper. “Maybe (Murdoch’s) format will be something that others can follow to help us make this transition,” he said.

Asked how Murdoch’s recent coup will affect global news reporting, Doherty said he is as curious as anyone else to see what happens. “I have no idea,” he said. “I’m not being coy. We’ll see. I just don’t know.”

Tabor declined to comment specifically on how Murdoch’s purchase of The Wall Street Journal might affect global media, but anyone with Murdoch’s business record is bound to have an impact, he said. “Rupert’s a good businessman,” Tabor said. “He’s a very feisty, competitive guy, and I think the Financial Times in London and The New York Times are gonna get a run for their money.”