VillageSoup.com acquires competing weekly newspapers in vindication of online model (with AUDIO)

In web and multimedia
VillageSoup.com acquires competing weekly newspapers in vindication of online model (with AUDIO)
By Bill Densmore
Jun 17, 2008, 15:38

When Richard Anderson came to mid-coast Maine in the mid-1990s, he became the interloper . . . the disruptor. Now that he's mainstream, will he continue to innovate?

Proving that local online news can be a valuable business weapon against legacy media, the owner of Maine's VillageSoup.com is acquiring six weekly newspapers he has been battling competitively for more than 10 years.

Anderson's Village NetMedia Inc. -- two award-winning local community news websites and two weekly tabloid papers -- are acquiring the six other weeklies, four of them direct competitors, from Crescent Publishing Co. LLC, of Greenville, S.C., headed by William deB. (Bern) Mebane, a former Gannett Co. Inc. executive.

In Media Giraffe Project interview, (DOWNLOAD PODCAST) Richard Anderson predicts his business victory is a harbinger of things to come -- an indication that once-dominant local media interests must cease thinking of themselves as primarily print businesses or face effective, even overpowering, competition.

Even the seller agrees. "We have adopted the VillageSoup model for our remaining newspapers in Alabama," says Mebane. "We competed with Richard up here . . . and he realized that he was the real deal . . . this is a marriage between the traditional titles and trademarks and franchises of print with the recognition that it isn't just print any longer. It's the three-legged stool of learn, share and shop. News doesn't come down on high."

Anderson said about 26 positions will be lost in the merger and consolidation, in which three flags will be shuttered, leaving a total of five publications in five Maine locations, two existing VillageSoup web communities, and 92 employees. Anderson said the company will launch two new websites to lead and support the print publications it is acquiring.

"With the declining revenue of traditional newspapers -- both in circulation and advertising, the 10-year VillageSoup experiment is finally being recognized in the industry," Anderson said in a statement. "Our approach helps transition traditional community newsppaer companies into community host companies, and that's the future of the industry."

Anderson said he used conventional commercial bank financing to acquire the Crescent papers. He declined to reveal the amount. In the past, Anderson has said he had invested more than $5 million to start VillageSoup from scratch.

A four-page preliminary news release about the transaction may be downloaded as a PDF (source: Village NetMedia Inc. -- the employment figures above are correct per Richard Anderson vs. the early release version)

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