Posted in The Bay Citizen
Last updated 02/02/2012 at 11:21 p.m. PST

The Bay Citizen in Merger Talks

Under plan, leading CEO candidate would join two nonprofit news organizations

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By on February 2, 2012 - 5:40 p.m. PST

The Bay Citizen
James Irwin for The Bay Citizen, Getty Images
Phil Bronstein, Steve Fainaru, Warren Hellman, Lisa Frazier, seen left to right
In early 2009, San Franciscans faced the very real prospect that theirs could be the first major American city without a daily newspaper. The city’s only remaining broadsheet, the Hearst-owned San Francisco Chronicle, was in financial trouble and was slashing its reporting staff. Rumors spread that Hearst was considering letting the 145-year-old newspaper die.

Warren Hellman, a San Francisco investor and philanthropist, told friends he was alarmed by the potential loss of quality news coverage in the Bay Area, and he commissioned McKinsey & Company to evaluate a purchase of The Chronicle. He rejected that plan and decided instead to create a new experiment in nonprofit civic journalism. The Bay Citizen was launched in 2010 with grand ambitions, $5 million in seed money, and a performance by Hellman’s bluegrass band, The Wronglers, with Hellman twanging his banjo.

Then Hellman died unexpectedly, on Dec. 18, at age 77, of complications arising from treatments for leukemia. Now, The Bay Citizen is considering a potential merger, according to people involved in the discussions, a move that could see the publication absorbed by an older but similar nonprofit news organization in Berkeley, and raising questions about whether the founding patron’s vision for a revitalization of Bay Area news reporting can survive him.

The unexpected death of Hellman left The Bay Citizen without its founder and benefactor. In September, the news organization’s founding editor-in-chief, Jonathan Weber, resigned abruptly. In October, the founding chief executive, Lisa Frazier, announced that she would resign in early 2012 for personal reasons. Last week, the interim editor-in-chief, Steve Fainaru, a former Pulitzer prize-winning investigative reporter for The Washington Post, announced that he was resigning to pursue a book project.

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In the weeks before Hellman’s death, sources say, he began discussions with a local newspaperman, Phil Bronstein, then a vice president at Hearst Corporation, to take over as chief executive of The Bay Citizen when Frazier stepped down. Her last day on the job is Monday. She declined to comment for this article.

Bronstein, 61, who was editor of The San Francisco Chronicle from 2003 until 2008 (previously he served as the executive editor), is president of the board of the Berkeley-based Center for Investigative Reporting, CIR, another nonprofit journalism group that was founded in 1977. As a board member, Bronstein was involved in the creation of California Watch, a project of CIR, which assembled the largest team of investigative reporters in California. California Watch was formed in 2009 and distributes what it calls high-impact journalism to more than 80 different publications. CIR and California Watch have a combined editorial staff of 27.

Bronstein, according to people familiar with the board’s deliberation, said he would accept the job as Bay Citizen CEO only if it were merged with CIR and California Watch. In December, shortly after Hellman’s death, some board members and Bay Citizen contract partners — including The New York Times, which carries Bay Citizen reporting on Fridays and Sundays in its Bay Area editions — began hearing about the proposed Bay Citizen-CIR merger.

Reached Thursday, Bronstein said he and Hellman had met periodically for years to discuss journalism, including features that Hellman suggested for The Chronicle, like “Rascal of the Week, Crook of the Week, hilarious stuff,” Bronstein said. He said that before founding The Bay Citizen, Hellman was considering making a donation to CIR “at a large level,” and that after The Bay Citizen was started, talks eventually involved a closer working relationship between The Bay Citizen and CIR.

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M L
M L
wrote on 02/02/2012 at 10:00 p.m. PST

What the hell does this mean? Our city is 49 square miles and its surrounded by another few hudred square mile of the most influential people on this earth. Please offer up a news organ that merits our paying attention to it. Maybe a fresh face here and there instead of the same old same old everywhere.

Josh Jamie
Josh Jamie
wrote on 02/02/2012 at 10:29 p.m. PST

Yeah ML, I couldn't agree more. The Bay Citizen has been such a disappointment. No better than the crappy Chronicle really, and that's a newspaper that has lost half its circulation in recent years. Warren didn't get his money's worth, and it would be better if the thing just died a quiet death. With all the top brass jumping ship, you get the feeling that's probably what's happening behind the scenes anyway. Good riddance. As you say, they never figured out what they have to offer that merits anyone paying attention.

Adrian  Waller
Adrian Waller
wrote on 02/07/2012 at 8:57 a.m. PST

People don't need to read.

Reading is for losers.

We should all be indie video-blogging.

Eric Arnold
Eric Arnold
wrote on 02/03/2012 at 1:06 a.m. PST

so phil b. takes over as Bay Citizen CEO and merges with California Watch? only cool is they go out of their way to be inclusive of diversity--which seems unlikely. not holding my breath. #whiteguysinsuits

Eric Arnold
Eric Arnold
wrote on 02/03/2012 at 1:07 a.m. PST

ps bay citizen--where's the traffic? for 17 mil, you should have gotten some page views.

rfkolbe
rfkolbe
wrote on 02/03/2012 at 6:47 a.m. PST

from the article: "He outlined plans for the combined organizations to focus on “entrepreneurial journalism,” raising the possibility of turning the technology of the news group into a profit center."

News organizations, while understandably have to work within some budget limitations, I long for the days of journalistic integrity that puts the public's interest ahead of profit.

----

Unbiased reporting requires this. Anyone else remember diligent investigative reporting? it has been a while.

Josh Wolf
Josh Wolf
wrote on 02/03/2012 at 11:20 a.m. PST

Since when do non-profits have a "profit center?"

It seems that much of the Bay Citizen's cachet is its relationship to the New York Times. Breaking that relationship to continue California Watch's partnerships seems like it will destroy thee fledgling Citizen. And for what? So Bronstein can continue publishing California Watch stories in The Chronicle?

Hellman's money would've lasted a decade if it's budget hadn't been so heavily weighted toward a management team that didn't even stick around long enough to see Citizen mature into something sustainable.

Elizabeth Krueger
Elizabeth Krueger
wrote on 02/03/2012 at 7:09 a.m. PST

Have to say I'm concerned by this article, as well as the dismissive tone of the comments - I want the Bay Citizen to continue. It's the only local journalism we have. I'd like to see it deepen its roots and grow, not be transplanted.
Frankly, I don't care whether the NYT gets Bay Area reporting, except as that revenue funds the reporting for the Bay Area in the first place.

Reza Musavi
Reza Musavi
wrote on 02/03/2012 at 7:14 a.m. PST

Define "in the public interest"? All too often, it seems that the editors of many publications, such as the Chronicle, view their own biases and agendas as being that of "the public interest". The Bay Citizen has been a breath of fresh air. I'm afraid that the model discussed in this article will result of more of the same type of slanted "journalism".

eight arms
eight arms
wrote on 02/03/2012 at 8:09 a.m. PST

Awesome.

Holly Brady
Holly Brady
wrote on 02/03/2012 at 8:19 a.m. PST

C'mon, people. This is important stuff. When we come to the place where a great city like San Francisco cannot support one newspaper, we've got to take the crisis seriously. Investigative news journalism--the Fourth Estate--is critical for democracy. It's the watchdog that keeps the rascals in line. To dismiss the Bay Citizen's troubles without serious concern is to miss that point.

Perhaps the Bay Citizen hasn't been all it could have been. But its people are trying to re-conceive investigative journalism in a very difficult period when newspaper business models are imploding. I have nothing but admiration for what they're trying to do. We should be supporting their efforts in any way possible.

Cheryl Meril
Cheryl Meril
wrote on 02/03/2012 at 8:37 a.m. PST

It sounds like it's all falling apart and, in a panic, the Bay Citizen is reaching for an old dinosaur in Bronstein. It's not a good move. The problem is these people at your paper have just been using up their salaries waiting for something else because they're hearts are in it. They're egos are far too bloated and they were just looking for a salary in a bad economy.

Your paper needs to employ the kind of people who love what they do and have a genuine interest in supporting their community. I've enjoyed the Bay Citizen and am sorry this is happening.

Joanne Butcher
Joanne Butcher
wrote on 02/03/2012 at 9:38 a.m. PST

I do hope that Mr. Hellman is watching and happy at the incredible legacy he has left us with alternative journalism here in the Bay Area. Collaborations and mergers, especially between serious organizations such as these three should bring greater service to the community.

If the goals of journalism and the needs of the community are kept at the forefront, the end result can only be of great value to all.

George  Smith
George Smith
wrote on 02/03/2012 at 11:08 a.m. PST

Sounds as if Lisa Frazier made off with her million or so in gains while the getting was good!

Gerry Shih did an excellent job in unveiling corruption, and it was great to see his articles in the NY Times as well!

Bronstein is a huge blowhard and any merger with the Chron would be a disaster!

Let's hope this stupid idea is halted!

The Chron fired all of its investigative reporters, and Rachel Gordon is a huge panderer to established interests!

Josh Wolf
Josh Wolf
wrote on 02/03/2012 at 11:23 a.m. PST

Since when do non-profits have a "profit center?"

It seems that much of the Bay Citizen's cachet is its relationship to the New York Times. Breaking that relationship to continue California Watch's partnerships seems like it will destroy thee fledgling Citizen. And for what? So Bronstein can continue publishing California Watch stories in The Chronicle?

Hellman's money would've lasted a decade if it's budget hadn't been so heavily weighted toward a management team that didn't even stick around long enough to see Citizen mature into something sustainable.

SF Reader
SF Reader
wrote on 02/03/2012 at 11:47 a.m. PST

I suspect "profit center" is hyperbole for "source of revenue", which every non-profit needs. It would be interesting to know how much of BC's seed money went into technology and exactly what Bronstein sees as financially valuable.

Dave Roberts
Dave Roberts
wrote on 02/03/2012 at 11:39 a.m. PST

"In early 2009, San Franciscans faced the very real prospect that theirs could be the first major American city without a daily newspaper."

The first duty of a news article, news writer, news organization is accuracy. The first sentence of this article is false.

The San Francisco Examiner, whether you like it or not, is a daily newspaper. If the Chron went under, the Examiner would have expanded its daily coverage.

Judy Berkowitz
Judy Berkowitz
wrote on 02/03/2012 at 1:19 p.m. PST

Well, yes and no... while San Francisco does indeed have two dailies, only one is a broadsheet [±15"x24"]. The other is a tabloid [±12'x16'] (which used to be a broadsheet).

Sherry Boschert
Sherry Boschert
wrote on 02/03/2012 at 11:55 a.m. PST

Traditional journalism outlets in the Bay Area don't have the considerable staff and resources needed to do investigative journalism any more. The Center for Investigative Reporting and California Watch have produced the best investigative stories I've seen in recent years from local news producers. I'm not thrilled about Bronstein, but if a merger can boost the Bay Citizen's abilities to do this kind of in-depth reporting focused on our region, that could be a very good thing. We'll see.

SF Soma
SF Soma
wrote on 02/03/2012 at 12:24 p.m. PST

Too bad about Bronstein. A has been in the industry, if he ever was.

Reza Musavi
Reza Musavi
wrote on 02/03/2012 at 2:07 p.m. PST

If I am not mistaken, Phil Bronstein presided over the Chronicle during its demise into irrelevance. Certainly not all of this was his fault but the quality of the content has been deteriorating for years. To use a baseball metaphor, hiring Bronstein as CEO of the new entity seems akin to hiring Mario Mendoza as your batting coach.

Montgomery  Powell
Montgomery Powell
wrote on 02/03/2012 at 2:19 p.m. PST

Hot off the Press: the new AARP magazine has Sharon Stone revealing what it was like to be married to Bronstein (highly unpleasant, to say the least): http://www.aarp.org/entertainment/movies-for-grownups/info-01-2012/sharon-stone-interview.html

Down with Hearst and its flunkies!

Michael Boyd
Michael Boyd
wrote on 02/03/2012 at 8:43 p.m. PST

Phil Bronstein is a good man and advocate for the little guy like me. But it would be disturbing if some of the fine reporting by the journalists at this news start-up where to end as a result of a non-profit merger. Might I suggest that one of the two non-profit organizations become a "supported organization" [Check box 11] on their IRS 990 Schedule A form of the other. It's clear that both non-profits support similar purposes so the Secretary of State need not be involved by my read of the IRS filing requirements.

Clifford Barney
Clifford Barney
wrote on 02/04/2012 at 9:14 p.m. PST

crook of the week? oh joy, what a wonderful idea! how about a top ten, so that you could ring up a fat ten clicks for one dumb story.

phil bronstein was once a hell of a reporter. as an editor he has been a bust.

i have been a supporter of baycit from the beginning and i agree with those who would like to see it survive, but the solution to that is not out-of-town hotshots, like the last two editors, but a person who knows the local scene and wants to cover it. forget investigative reporting - that is not the main purpose of a serious publication. readers need local and state news from their local journal, whether print or online. instead of cir, the baycit shd consider merging with oakland north.

Joyce Steinlauf
Joyce Steinlauf
wrote on 02/14/2012 at 2:11 p.m. PST


I really have enjoyed the Bay Citizen, you've (they've?) been trying to go beyond the fluff pieces - more money would help of course.
But some of the comments made by serious CIS watchers (Ann G.) bother me - a lot. Does the BC really need Bronstein? Maybe the answer is Yes, but I really hope not.

christine Craft
christine Craft
wrote on 03/27/2012 at 2:34 p.m. PDT

What would Mr. Hellman say about Mr. Bronstein's role in the lynching of Ross Mirkarimi?

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