Another Media Giant in Trouble

Other than the Star-Gazette and Democrat and Chronicle, almost every other paper in the 29th is owned by Gatehouse Communications. This week, Morningstar Financial released a report speculating that Gatehouse stock might be "worthless".

Last year, Gatehouse acquired 70 media properties and took on $1.2 billion in debt. Gatehouse may have trouble servicing that debt, which might trigger a situation where it becomes due immediately, which may lead to liquidation. Yesterday, Gatehouse stock closed under $1, down almost $17 from one year ago.

The Gatehouse papers in the 29th are often staffed by long-time residents who understand the Southern Tier political landscape. It would be a real loss if issues at the parent company disrupted those properties. It would also be an economic issue in Fairport, part of the 29th district, where Gatehouse has its corporate offices.