Ideas and think pieces that still stick from the year gone by – on burnout, the environment, long term thinking, media and more

As an experiment, what about looking at the think pieces and ideas that still stick from 2023 – rather than the newest new thing or predicting trends that may or may not come to pass?

For me, some of the articles I still think about, that still resonate from last year focus on issues such as sustainable success, cognitive overload and how to protect against it, neuroscience, long term thinking, journalists traumatized by work, the end of platforms, the environment – and how burned out people will keep burning down the planet.

In other words, I’m thinking of the big picture and how we can better equip ourselves for meeting the many complex problems we face today in a sustainable way – both on the micro and macro level, both as individuals and through companies, organsations and societies.

And as for burnout, I’m not planning to get on a high horse here – I’ve had at least one major burnout early in life, probably a few smaller ones later, and I learnt valuable lessons from it all - but I read this poignant and moving post on the topic in December, one that still resonates with me.

I attended a deeply fascinating debate on consciousness, work culture and work life at the start of December (expertly  organized by Guro Røberg), and stumbled across this piece by one of the eloquent panelists, Snorre Vikingsen, published on the same day, on why he crashed and why that was a good thing (Linkedin):

“How Ironic. Giving a talk on the business of burning out, advocating for a more balanced working culture, and not realizing that I was at the brink of burnout myself,” he wrote.

“Burned out people will keep burning up the planet’ is a slogan highlighting the interconnectedness of human health and planetary stewardship coined by Ariana Huffington. In a nutshell it connects humanity’s inability to create environmental sustainability with work pressure and the exhausting performance mindset.

“How can we create great conditions on the outside If we are unable to create great conditions on the inside?... Burnout symptoms affect cognitive functions, especially the prefrontal cortex, which governs long-term decision-making.” Full post here (on Linkedin).

Or as Huffington wrote herself: “When we’re burned out, exhausted and depleted, we operate on short-termism and day-to-day survival, just trying to get through the day, or even just the next hour. We’re not just less able to create new and more sustainable habits, we’re also unable to think about the future, make the wisest decisions for the long term and come up with creative and innovative solutions to complex challenges — like climate change.”

This reminds me of an old, favorite quote of mine, often misattributed to Ghandi: “What we are doing to the forests of the world is but a mirror reflection of what we are doing to ourselves and to one another,” Chris Maser, Forest Primeval: The Natural History of an Ancient Forest

A few main issues here are short-termism, cognitive overload and the interconnectedness of human health and planetary stewardship – or the interconnectedness of everything, if you like.

Adam Tinworth wrote well on this in his piece on how “Long-term thinking is our best weapon against the permacrisis”.

“The major part of the pandemic’s impact on our lives is now over. So, why aren’t we truly back to long-term thinking? Well, sadly, crisis became permacrisis. Even as the worst of the pandemic wound down, the sudden outbreak of war in Europe and its impact on supply chains and energy supply kept us focusing on the now. We had a new problem to manage, a new crisis to resolve.

It kept us reactive.”

Or, in Johann Hari’s words:

“As a species, we are facing a slew of unprecedented tripwires and trapdoors – like the climate crisis – and, unlike previous generations, we are mostly not rising to solve our biggest challenges. Why? Part of the reason, I think, is that when attention breaks down, problem-solving breaks down. Solving big problems requires the sustained focus of many people over many years."

The quote is from his book “Stolen focus: Why you can’t pay attention”, which I read, enjoyed and blogged about last year (in Norwegian). The book has been portrayed as a book on how social media is stealing our focus, but it’s basically looking at how social media is ONE of many things potentially stealing our focus and undermining our concentration – AND how to reclaim it.

That last bit, about how to reclaim it, is equally important, especially after the digital overload of the pandemic world.

And the answer does of course not have to mean to abstain from all the things potentially stealing our focus – but to be aware of the challenges, balance use, find more chunks of time for uninterrupted work etc.

Another way to phrase that is to lead a more balanced life, be more conscious and restrictive of your media / social media consumption etc. That’s not always easy as a journalist, as being up to speed on things can be such a big focus of your work.

It may seem odd to a non-journalist, but I remember having to wean myself off stuff like watching terrorist attacks unfolding live on Twitter (by way of Twitter updates) back when I moved on to a non-journalism job.

Twitter, back in its heyday, was such an excellent tool for keeping up on unfolding news of that kind.

But what kind of content and the amount of it we consume will of course impact us. To an extent you can use techniques to counterbalance it all, but it’s vital to be conscious of the impact and how to alleviate it.

That is why another great read from last year was Joanna Geary’s post on resiliency and leadership:

“Working my way up in local news, I met so many people traumatised by the work. From the reporter who relayed to me harrowing details of arriving to victims of a house fire before emergency services; or the editors who learned it was not ok to talk about the stress of doing more with less so instead turned to alcohol or painkillers among other things.

“When it comes to supporting people in news, we could and should have done a lot better sooner. But we didn’t." She goes on to offer sage advice on ways to address this.

On this topic, Headlines Network founder Hannah Storm gave an excellent talk on how newsroom leaders need to step up their commitments on mental health and wellbeing of staff (I was also delighted to be able to stream her talk on a similar topic at the Perugia Journalism Festival):

“Everybody's emotional load varies, but many colleagues tell me they are exhausted. Burnout is classed by the World Health Organisation as an occupational hazard, and it is forcing people to leave our industry…

“…Sadly, one of the most common concerns I hear from colleagues – anywhere – is they are still scared that admitting they are distressed will prevent them from getting the next promotion, or story. And yet, it can be transformational for all of us when people feel safe sharing their stories.” Ultimately, trauma in the aftermath of a terror attack was a major reason why I left journalism for my current job - so it’s so good to see people like Storm address these issues.

Then there was this piece on Psykologisk.no on energy, “Burnout - a consequence of a very good life?” (in Norwegian):

“Unfortunately, and fortunately, we are designed so that we can pull the energy master card and use more energy than we actually have when the going gets tough. But borrowed energy also has sky-high interest rates," the author wrote.

That’s hardly controversial.

But he argues that spending energy on “healthy” things like working out or hanging out with friends to compensate for things like a demanding job and a demanding family life may not work – that you ultimately cannot get energy by spending energy. Nor, he argues, can healthy habits prevent burnout if you commit to way too much in too many areas of life.

Perhaps all this is self-evident, but the article offered plenty of food for thought for me. For me, a thing like exercise is certainly a source of energy and something that feels essential to a good life – but yes, I have overdone that as well, so I guess it’s all about the overall balance.      

Another big topic I keep reflecting on, more related to my professional life, is the end of platforms. It’s easy to quip that this may solve the issue of social media stealing focus, except of course we’re just moving into a more fragmented social media landscape. Another way to look at it is, as Kevin Anderson wrote in this insightful piece “The Platform Era is ending, and the AI era is just beginning”.

Incidentally, ALL of the media debates I attended, and blogged about, last year was on AI – not to mention this brilliant one just before Christmas (in Norwegian).

But in addition to its many benefits, AI raises a whole new set of challenges – not at least, from an environmental perspective, considering how much energy it consumes. That is, if not new research, such as this on Atomic Layer Depostion (in Norwegian), comes to the rescue.

This is all in addition to all the other challenges we face ahead: Europe’s water crisis: how supplies turned to ‘gold dust’ (FT, paywall), the crisis in earth quality (in Norwegian), in biodiversity, the wars, the state of the world…

So many hard, complex challenges to solve – we really need full focus, undivided attention, and health to be able to tackle these... 

BrightonHorizonSea


Ex-Mecom bosses condemn Norwegian sale, while the divested operations vow not to become Redneck papers

"This is yet another sad chapter in Mecom's short and tragic history as a media owner in Norway and other countries," Kjell Johnsen, the former CEO of Mecom's Norwegian division, Edda Media, told Dagens Naeringsliv.


Johnsen breaks his silence
His comments in the wake of yesterday's disposal of Edda's North-Western operations, is a departure from his usual reluctance to comment on his former employer's dealings, a reluctance he has maintained since leaving Mecom in protest against David Montgomery in 2007.

However, speaking to Dagens Naeringsliv, he asserted that buying media operations in Norway and other countries at the top of the business cycle, paying a premium price with borrowed money, as Mecom has done, was a recipe for disaster.


Disappointed ex-CEO
"It is sad to see Edda Media being dismantled," Jan Moberg, who resigned just after Mecom's German deal at the start of this year, told the paper. Moberg was relieved of his administrative duties as CEO of Edda Media in October 2008 "in order to focus on new ownership solutions" for Edda, and it was rumoured it was his opposition to breaking up the Norwegian media group that spurred his resignation.

Montgomery&MobergCartoon

Moberg and Montgomery in happier times (photo copyrighted to and courtesy of Martin H. Jensen), edits by me

From Mecom's point of view, yesterday's deal with Polaris Media should help the ailing media group meet its debt covenant test this month, and also puts an end to speculations that Norwegian media group A-pressen was poised to take over Mecom's entire Norwegian division, which is the most profitable divison in the pan-European company.


No moustaches
Meanwhile, my favourite take on yesterday's news was Sunnmørsposten's management vehemently denying that being acquired by Polaris would turn the paper into a "Trønder" newspaper - which I, for lack of a better word, has translated to "Redneck newspaper" (have a look at this photo of a typical "Trønder" and see if you think my translation fits the bill).

Polaris, which submitted an indcative bid for Mecom's North-Western divison as early as 29 September 2008, has its power centre in Trondheim in "middle Norway" (still far north if you look at the map, much further north than I've ever been).

The region is associated with a typical "redneck" look, a prominent part of which is a moustache. Hence, Sunnmørsposten's fabulous illustration photo of yesterday, indicating that Polaris' takeover won't lead to moustaches coming into fashion among its management. For pictures of Mecom-boss David Montgomery visiting the North-Western newspapers he's now agreed to sell, check the links in the last paragraph here.

As a quick search doesn't turn up any photos on Flickr of a typical "Trønder" with a Creative Commons lincense, here's a moustache man from deneyterrio:

MoustacheMan

Now, as soon as the news of Mecom's latest divestment hit the wires yesterday, I got an email from a long-time reader who suggested I take a look at the story, "When you're ready with the snowstorm" (alluding to my dateline).

Well, it's still snowing heavily where I am, and I'm afraid I had my head down in another project yesterday, hence the delay, but since I've followed this company so closely for such a long time I can always add more context and colour than the wires...;-)


What I've been reading and pondering of late

Obviously, this is not a complete list. Usually I just save my favourite links to delicious, but, since this blog revolves around the many facets of how the communcations industry is changing, here's a few really interesting links to chew on:

Eirikso: "Free, but not that free…" Eirik Solheim's contribution to the blograce leading up to Wednesday's Media Evolution 2009 where they're dicussing Chris Anderson's thought on the economics of free.

Mediainfluencer: "Brand as identity and branding as behaviour",
excellent as always from Adriana on branding and its role in business strategy. "..the bad news for the branding folks is that messages and projections are not what they used to be. The good news is that a company can define its identity and behave according to who they want to be. That sounds like a good trade-off to me."

Richard Burton: Is Fleet Street a Dead End or the New Super Highway? The former editor of the Daily Telegraph online, now managing editor of The JC, on the challenges of getting the Telegraph to embrace the online mindset and opportunities, and on the media future. Richard warned me this was a transcript and as such not entirely accurate, but that the general gist was correct. It does make for fascinating reading (I may still find time to post some of my thoughts on it later).

Handbook for Bloggers and Cyber-Dissidents
Not so much a link to ponder perhaps, but still an interesting development: Reporters Without Borders has published a Handbook for Bloggers and Cyber-Dissidents (pdf, 81 p.), intended for citizen reporters in countries where the mainstream media is censored or under pressure. According to Gisle Hannemyr, it provides some rudimentary technical advice on how to to remain anonymous and how to get around certain types of censorship.


Icelandic media: "like alcoholics on detox"

So, Icleand has a new government, this one headed by Johanna Sigurdardottir.

Who's controlling who? Interestingly, what struck me the most when I was in Rekjavik in mid-December was the lack of agreement and uncertainty I encountered over who were actually running the place: you could call it lack of regulation of course, but it came across as a more fudamental uncertainty about who controlled the watchers and who controlled those who were supposed to watch the watchers.

Surreal After I described my visit there as "surreal" in this post, Ashok asked me in which way, and I answered surreal as in walking into a bad dream wide awake or into a surrealist painting where familiar forms are melting before your eyes into something unrecognisable: not necessarily malevolent, but dizzying perhaps; disturbing. Now, this impression could of course have something to do with the fact that it was my last reporting trip in a very busy year; the fact that neither of the three editors I met with while there seemed to know who owned the newspapers they were charged with running - or a combination of the two. 

Who owns what? As I got off the bus from Keflavik airport my emninent photographer, Hari, kindly picked me up and drove me to my appointment with Ólafur Stephensen, editor-in-chief of Iceland's second biggest newspaper, Morgunbladid. Ownership status at the time: the paper's mother company, Posthusid Arvakri, was technically broke, the editor was among several employees who hadn't received their December salary and they were in talks to find new owners.

Then, it was straight on to Frettabladid, who had been in talks to merge with Posthusid Arvakri, but a reporter told me Baugur's Jón Ásgeir Jóhannesson had paid off a big debt for the paper (also previously controlled by a Bagur-led consortium) and now probably owned it. I was asked to verify the situation with the editor-in-chief, Jón Kaldal, who said he was uncertain about the actual ownership structure and could I please check with his boss Ari Edwald (clarified here).

Editor-in-chief Reynir Traustason of DV, a tabloid, was also rather unclear on the specifics of the ownership issue, but said the paper was working to cut all its connections to Baugur.

"Our sugar daddies are dead"
"In Iceland we are a split nation," the DV-editor explained: "there are those who follow David Oddson [head of the central bank] and those who are against him. Same for Baugur's Jón Ásgeir Jóhannesson. We have our own word for those who follow Jón Ásgeir: Baugsmidlar.

Incidentally, the taxi driver who recommended I get in touch with Traustason in the first place, claimed Iceland was controlled by Baugur - due to its dominant role in Icelandic media.

"You know, the sugar daddy behind DV and Fréttablaðið was Baugur, but the sugar daddy behind Morgunbladid was Björgólfur Guðmundsson? Every media here has its problem. We had Jon Asgeir, they have Björgólfur, said the tabloid editor:

Like alcoholics on detox
"Cross-ownership has been a big problem in the media here. Now everyone is on his or her own because our sugar daddies are dead. Every company which gets money out of the blue gets sick, so Icelandic media was very sick. Now we have to stand on our own feet. We are like alcoholics on detox," he asserted.

Some would of course argue that is descriptive of the state the entire country is in, due to easy and high-risk credit (such as foreign currency loans), but my mind also jumped to a similar sentiment by Clay Shirky, from this interview:

A lot of working journalists, and especially print journalists, are in the position of being sort of kept women. They don’t really understand where the money comes from but, you know, their particular sugar daddy seems pretty flush, so they just never gave it much thought. And then one day the market crashes and they suddenly discover, “Wait a minute, we were a business? And our revenues had to exceed our expenses every year? Why wasn’t I informed?"

In DV's case, Traustason explained that with its sugar daddies dead, the tabloid had to downsize from 48 to 24 pages and cut about ten journalists. "Now we can probably live," he said, adding that 40 per cent of the paper's revenues came from advertisement, and it was hard to get as companies were collapsing, falling over, all around them.

Who's to blame?
Also, like all over the Westerns world, the Icleandic are asking why the media didn't spot the storm brewing - except, with the country in such a mess, much more so than in other countries. "Only in May, we covered the government's report on the good health of the economy," said Kaldal, who admitted media was guilty, but said; "We are guilty of believing hype, but that's a guilt the whole society should shoulder. The state is the one who really failed."

Still, it is perhaps no wonder the country's population increasingly turning to social media such as political blogs and Facebook to inform each other and vent their frustrations, as I describe in this article (I also  reported on the story in Norwegian here before Christmas, but this blog post contains additional thoughts and previously unused material)

Postludium:
It must be said that everyone I met and talked to on Iceland were very helpful and accomodating: both to see me on very short notice and to give me so much of their time.

After I got back to Oslo and my story was published, a journalist I'd been in touch with emailed me to tell me about a new development:

He: "You might be interested to know that editor xx have come under fire since you were here. A reporter came forward and told the public how he had buried his story regarding a former manager of Landsbanki, the bank responsible for the Icesave debacle. At first he denied this but the reporter played a recording of a conversation where the editor tries to explain that if they run the story the newspaper will be 'killed'."

Me: "Interesting. Thanks for the tip. Seems the cross-ownerships /cross-interests of Icelandic media makes for the most fascinating intrigues, twists and turns."

He: "That´s true. Somtimes it feels like a bad soap opera."


The David Montgomery Appreciation society

Mecom shareholders launch fan club for David Montgomery on Facebook.

Fed up with all the negative media coverage of former Mirror boss David Montgomery's struggling pan-European media group, Adam Billiald, a small shareholder in Mecom, has set up nothing less than The David Montgomery Appreciation Society (thanks to Christoph for alerting me to the fan club on Twitter).

At the time of writing, some eight hours after the group launched, it has 40 members.

In an email, Billiald explained to me that he was tired of the markets and press slating Montgomery and wanted to show that the Mecom-boss has support, a point he claimed was proved by the first few comments on the group's Facebook wall.

"I am sure he can get them through this mess and wipe the debts. We are all also (small) shareholders... but we are all supporting him, as did the major ones..." he said. Billiald, who works for Yell Group when he's not dabbling in shares, is an active contributor to this Mecom Group Share Chat Forum where the news of the new group was met with much praise.

Reacting to the news on the chat board, another regular contributor, petertee, whom I'm guessing is the same person as the Facebook profile Peter Robert Tee, wrote: "Hope we get many more members - search Facebook under Mecom - David Montgomery Appreciation to join - its free and you can add comments, news, whatever - anything relating to Mecom under DM leadership. He is like our modern day Buzz Lightyear, and he will lead MEC to infinity and beyond!"

In a Facebook message, Billiald told me he hoped Montgomery himself would be in touch at some point.

For the record: I have followed the discussion on the chat forum on and off since some time around Christmas, and Billiald emailed me his thoughts on Mecom's forthcoming disposals last week in response to this post.Several of the people who contribute to the forum follow the company very closely, so closely that Christoph has been kind enough to set up a Yahoo Pipe which provides an RSS-feed for the news articles they share with each other as we all know, at least those of us who've followed the company for a long time, that UK media coverage of the group tend to be patchy and limited.

On the Icelandic government's collapse

Today Iceland's coalition government collapsed under the strain of an escalating economic crisis, finally some would say (thanks to @lauraoliver for alerting me to this story)

I was in Reykjavik to do story in December, on media of course, and it was a surreal experience. The sense of doom and gloom was not helped by Iceland's barren "moon landscape", nor by these weird sculptures along the road from Keflavik airport to Reykjavik (this photo was taken from behind a dirty bus window, click on the pictures to see them in full size):

SculpturesAlongTheRoad

"Welcome to the sinking Iceland," wrote Andri Snær Magnason, the author of «Dreamland: Self-help for a frightened nation»," when I contacted him by email (photo below snapped from the airplane when taking off.)

Reykjavik 056

"I'm not so sure Bjørgólfur Guðmundsson, or anyone else in Landsbanki were criminal: they could drive in 250 km/hrs and they did," said DV's editor-in-chief Reynir Traustasson, with reference to the Icesave scandal. But if Traustasson did not think the bank directors and others criminal, a large portion of the population certainly do, with signs comparing prime minister, Geir Haarde, and the head of the central bank, David Oddson, to bin Laden and worse flourishing at the weekly demonstrations.


ReykjavikProtest4

ReykjavikProtest3

I truly felt like a stranger in a strange world while I was on Iceland, and if we think we're having a bad time here due to the struggling economy it's nothing compared to the situation there. However, I was told one upside for journalists, who're facing massive job cuts, is the fact that the financial woes of the island has attracted so much interest from international press that some journalists have been able to compensate for loosing their Icelandic jobs by working as stringers for international agencies such as Reuters and AP (by the way, these photos are all my own haphazard shots, but I worked with a great photographer, Haraldur Jónasson - highly recommened: very professional, flexible, knowledgeable and fun to work with - while there)

Bonus link (added 27/1-09 8pm CET): Is this the most hated man in Iceland? (via Andrisig on Twitter)


How the web is changing newsreading habits

I should perhaps have entitled this post "How the web is changing newsreading habits, chapter xxx", but I've quite forgotten which chapter we're on. In any case, here's an interesting snapshot from Fred Wilson:

The Gotham Gal has been religious about reading the NY Times in paper and doing the crossword as 'dessert' as long as I've known her (28 yrs now)... So this past year, during the presidential election, when she went online 5x per day to see what was going on, you'd think shed have gone to the nytimes.com.

But she didn't. She went to Huffpo. And that habit has not changed since early November. She reads the paper in the morning as always and then checks in with her trusted blogs and web news services throughout the day and evening, like the trader who reads the WSJ in paper form on the train in and then hangs out on his/her Bloomberg all day long. I've asked her to post on all the online news sources she checks every day and she just did that. Here it is. ....

...it teaches me some important things. First, the mainstream newspaper reader is just making this transition to intraday news consumption now. Second, they will not blindly follow their offline brand loyalty when they go online. And most importantly, publishing news online is fundamentally different from publishing news offlin
e. Do check out the full post here.

Summing up the Scandinavian media year 2008

No, this is not one of those summaries xxx weeks after the events: if anything, I put together the usual summary of the region's key media events a bit too early in 2008 (my deadline was mid-October).

Then I got a bit too busy, forgot to be on the lookout for when it went oline, and ended up stumbling across it by chance recently. Surprisingly, the summary still holds up pretty well, the only events that took a slightly different turn from when I wrote it were Baugur pulling out of the proposed merger of Frettbladid and Posthusid Arvakri, the publisher of Morgunbladid, and bailing out the media arm of 365media, which owns Frettabladid.

Of course, Iceland is not strictly a part of Scandinavia, although foreigners often think so, but this story was so intertwined with developements in Danish media last year that it was decided to put it all under the same headline.

The focus of the summary is largely on structural changes, like mergers and acquisitions and new laws affecting the region's media industry, but there's also a bit on online development in there.


On Mecom's board room revolt, the German deal and new disposals

Didn't I just say there were no boring days with this company? Two days after that comment six of the company's directors resign after a failed coup to oust Mecom-boss David Montgomery.

It's good to see Rob back in the comment section copying me in on the news, he's copied me in on some really interesting links in the past, but on this account I must admit I just failed to address the drama due to lack of time. Now, my colleague Martin provides some really interesting background on the boardroom mutiny attempt and how it came about here (in Norwegian).

According to the sources Martin talked to, the failure to sell Edda Media, Mecom's Norwegian division this summer, before the price offers were reduced, was one of several concerns which led up to the the boardroom revolt.

Now I'll be the first to admit there are internal dynamics at play here that I'm not qualified to opine on, but as one who's followed the company closely I do think selling Mecom's German arm rather than the Norwegian one is a good move.

If I were to put on my business developer/analyst hat I'd say it's the best bet on the future Mecom could make: due in part to the macroeconomic outlook for Germany vs. Norway, but also because how far ahead the Norwegian newspapers are in terms of online develoment - a fact that Montgomery himself was keen to point out to me.

As the most profitable division in Mecom Edda Media might have fetched a better price if sold last summer - to take one of the courtiers: A-pressen reduced it's offer with roughly one billion NOK since then - but we can only speculate if that was due to the worsening financial outlook, completing the due diligence tests or both.

However, the Norwegian business generates a good cashflow and is much better poised to deal with the downturn and to be a player in the future media landscape than the German which would have needed a lot of investment in order to embrace all the advantages online (and there is no getting around doing that if newspapers want to stay competitive the current market).    

Also, the fact that Mecom failed to make more of its German business - e.g. by making Netzeitung its online operation and taking advantage of the expertise of this site, the first standalone news site in the country, as Olav Anders has pointed out on several occasions - suggests to me that Mecom's German management was not up to the job.

Mind you, this conclusion is also supported by some of Joseph Depenbrock's statements - such as this one about not needing the trust of his employees  (see esp. this link) - and my many talks with employee and union reps. These will always have their own agenda, but it was kind of telling when an employee representative sugggested to me that Depenbrock might have achieved better results if he'd emphasised the benefits of a more effective organisation and of new online possibilities rather than cost-cuts and negative aspects.  

As for what disposal Mecom should make next, more disposals are needed to reduce the debt level, I'm wondering if the company's stake in Rzeczpospolita is not more trouble than it is worth. The Polish state has been discontent with how the British media group has run the ship, especially with not turning over a better profit (oh, the ironies here) and Truls Velgaard, Mecom's Polish CEO threatened with legal action based on this conflict - though local union reps have told me they think this is a political conflict and that they were happy with Velgaard as a boss.

So it will be interesting to see what happens when the Polish state announces what it wants to do with its stake in the company that owns Rzeczpospolita later this week. Several parties have announced their interest. Mecom has also been in talks to divest some of its Dutch operations, and then there's of course Polaris Media's bid for Edda Media's papers in Western Norway, worth roughly 600m NOK, to keep an eye on.

If you're following this story, I'd love to hear what you think about recent developments and the road ahead (however, I'm in London 'til Wednesday morning, and if I'm slow to reply it's because my internet access will be limited while here).  


Top Mecom executive resigns after German deal

Just as Mecom finally put up the official statement about its German disposal yesterday, news broke that the man in charge of finding a new ownership solution for its Norwegian division, Edda Media, had resigned.

There are no boring days with this company: as someone who's followed Mecom from its early days I can tell you it's been a colourful tale from day one, a fact I guess Europe's media hacks should be grateful for - though they've often failed to take advantage of it.

No sooner was the German deal done and dusted, when it was announced Jan Moberg, who was relieved of his administrative duties as CEO of Edda Media "in order to focus on new ownership solutions" for Edda in October 2008, was to step down. Union representatives blamed friction between Moberg and Truls Velgaard, the CEO of Mecom Poland, who was brought in to take over running Edda, and said the former had been a good manager who would be sorely missed. Media site Kampanje claimed there had been disagreement between Mecom-boss David Montgomery and Moberg about selling parts of Edda Media, but Moberg declined to comment.

Montgomery&MobergCartoon
Jan Moberg (left) and David Montgomery (photo copyrighted to, and courtesy of, Martin H. Jensen, edits by me. I believe it was snapped after this most intriguing debate)

The British media company's Norwegian division has attracted indicative bids from rival newspaper companies A-pressen and Berner Gruppen, as well as one for its news operations in Western Norway from Polaris Media, but employee representatives have said they think the German deal makes it less likely the local newspaper group, the best performing among the Mecom divisions, will be sold.

MontgomeryReadingDT
Montgomery pictured here reading Edda newspaper Drammens Tidende (DT), where both Moberg and yours truly have served as editorial columnists - both before Mecom acquired it, but not at the same time (copyrights: same as above photo).

Moberg does not have a new job lined up, but the media executive has a parallel career as a playwright. He is best known to Norwegian children as the author of "The Christmas Scoundrel" (not to be confused with Scrooge, though both do their best to put a damper on the festive season), and if working for Mecom has been as colourful as the saga of its rapid expansion, and now contraction, has appeared to the outsider, perhaps we can look forward to a few inspired new plays in the years to come?

 Juleskurken2

DuMont Schauberg to the rescue of German Mecom employees

"Mecom is poised to sell its German newspapers for €165 million (£148 million)... If the talks conclude as anticipated, an announcement could come as soon as today, reports The Times."

Well, yes, that would be the announcement everyone who's following the company closely has been waiting for all day. Update on the negotiations delaying the deal here (10 Jan, in German), on the final price here (12 Jan). Updates added 13 Jan 09:00 CET.

In the meantime, why not indulge in a bit of background for amusement: we can of course only speculate at this stage whether or not it is exactly the white knight Berliner Zeitung employees had in mind when they advertised for a new publisher to save them from Mecom last summer, but at least M. DuMont Schauberg (MDS), Germany's fourth largest newspaper publisher, the country's third largest if the deal goes through, is of the right nationality.

BerlinerZeitungAd

The strong synergies between MDS' Frankfurter Rundschau and Berliner Zeitung, the most prestigious of the assests MDS will acquire when it takes over Mecom's German division, might result in job losses and make the deal taste somewhat bitter-sweet to some of those being acquired, but under current circumstances, I think it's a good deal for all parties (I'll return with more on why, apart from the obvious benefits, later).

As the deal currently stands, no redundancies are on the table, but further down the road it might be an attractive opportunity for MDS to "consolidate" its operations into bigger, more cost-effective units.

A price tag of 165m Euro for Hamburger Morgenpost and Berliner Verlag would have come close to equalling what Mecom paid for the latter company three years ago, 152 Euro is even less. Still, in the current bear market, where it's hard to raise money and several market insiders were starting to wonder if Mecom's suitors had not decided to pull out and wait for David Montgomery's investment vehicle to go bankrupt so they could pick up the pieces for a bargain, it's not too bad and, with a few more new disposals, it should help buy Mecom the time it needs to get its house in order.  

In an ironic twist, the current editor-in-chief of Frankfurter Rundschau is Uwe Vorkötter, who two years ago left the job as editor-in-chief of Berliner Zeitung in protest over Montgomery's and Mecom's cost saving measueres. According to a colleague on the scene, German newspapers, including Taz, speculate that Vorkötter will get a key role in the merged company.

Meanwhile, employee representatives in Mecom's Norway division, Edda Media, have said they're disappointed by the recent turn of events, as it makes it less likely that the British media group will sell it's Norwegian arm any time soon, and it is rumoured Mecom journalists in Germany are holding their breaths in case it should be decided in the last minute that Hamburger Morgenpost won't be part of the deal.


So it's goodbye to the last newspaper company in Fleet Street

Metro International has just announced it's planning to relocate key operations from Fleet Street to Stockholm by the end of this year, implicitly blaming the move on the financial downturn.

"During Metro's growth period particularly in Europe we have benefited from being located in a media capital such as London. As our business has entered into a more mature state our needs have changed and we have therefore concluded that some of our London functions would profit from being closer to both an operating unit as well as our financial market," Metro's CEO Per Mikael Jensen said in a press release.

I interviewed Jensen at Metro's London offices only February last year, at which point he was talking of employing more journalists in London to build a central content agency, producing content for all of Metro's papers there. How quickly things change.... 

Metro's move from Mayfair to Fleet Street in 2007 was met with appraising nods that print was moving back to  "the spiritual home of British Press". 85 Fleet Street was previously occupied by Reuters, the last major news organisation to move away from the “street of ink” in 2005.  

London85FleetStreet

London, as seen from 85 Fleet Street:
LondonFeb2008 005


Fighting institutional inertia

David Cohn has an interesting post which rhymes with my post on why change in the newsroom is so hard. Among other things, he says:

"The fate of newspapers isn't the fault of any individual editor, reporter, publisher, etc. They are all acting within the confines of institutions. Newspapers are industrial age institutions with inertia that could pummel an elephant. To use an analogy: They operate like the military. It might not be so strict that reporters have to salute their superiors - but there is a chain of command, an expected means of behavior and decisions must go through the proper channels. As a result - newspapers turn like battleships and even implementing one line of code can take upwards of six months."

This also gels with what I wrote on media and disruptive technology and especially the part about The Entrenched Player's Dillema (a post in which I was really just playing around with ideas, but found it a very useful thought experiment which I will return to from a different angle soon).

Another of my favourite explanations of why the media industry sometimes is slow to catch on is this one, which I've taken from Paal Leveraas (unfortunately I don't have a direct link to the post I found it it):

"We stand in the stream of events, while busy chasing deadlines the world changes and we are too busy to notice the change."


Anniversaries: Berlingske celebrates with tunnel vision, Dagbladet with old news

Mecom-owned Berlingske Tidende, Denmark's oldest newspaper still in existence, celebrated its 260-year anniversary Saturday, and marked the event by creating this time tunnel.

A rather nifty application, if perhaps a bit, well... complicated? I found it a bit dizzyig at first, which is what made me think of tunnel vision, it reminded me of a recent talk with a Norwegian Mecom editor who said Danes had a way of thinking so complicated when it came to web media (many thanks to Helle Kruuse for alerting me to this on Twitter: I could easily have missed it as I tend to read Berlingske, like most news sites, only via my newsreader).

Meanwhile, in Norway Dagbladet is celebrating its 140-year anniversary by printing old news every day for an entire month. Critics of the tabloid - which often is derided for having downgraded its news department - will no doubt ask what's new in that respect.


Media and disruptive technology (or why change is so hard for entrenched companies)

What if we were to look at mainstream media's response to social media, such as blogging, thorugh the prism of disruptive technology?

This is an issue I've been mulling over since I heard Espen Andersen's talk on disruptive technologies, open source and mobile at Open Nordic conference in May: how does this apply to media?

Diverse 041

It occurs to me that looking at media and social media through this prism must have been done before - but I haven't come across any such analysis, and, regardless of whether or not such analysis already exist, I think looking a the changing media landcape this way is a very useful thought experiment for trying to understand how big media companies tend to approach disruptive innovations, such as social media. Now, feel free to join me in this thought experiment, I'm just playing around with ideas here, but I think it's a very useful exercise.

What is a disruptive technology?
Espen quoted Clayton M.Christensen's book The Innovator's dillemma (which I haven't read) when describing disruptive technology:

1) your best customers don't want it,
2) it gives poorer performance,
3) if you did it you would loose money.

Core attribute: the incumbent market leader is the least suited to adopt it.

Two examples on disruptive technology listed in Wikipedia:
- Early desktop-publishing systems could not match high-end professional systems in either features or quality. Nevertheless, they lowered the cost of entry to the publishing business, and economies of scale eventually enabled them to match, and then surpass, the functionality of the older dedicated publishing systems.

- The music and movie industries see file-sharing as a very real threat to their livelihood. With technologies like Bittorrent becoming part of pop culture the current business model for these industries, selling physical units, has been completely shattered.

Seeing MSM/social media through this prism
I think sharing news via social media such as blogs, social networks, and microblogging sites also fit the bill here, because

1) your premium subscribers are unlikely to be the first to jump the ship

2) social media, like say blogging platforms and twitter, are often, especially in the first stage(s), less reliable than the big expensive content management systems mainstream news sites tend to run on/ it's cruder and gives less functionality

3) big MSM players are often hampered by their own size, prestige and institutional slowness (for lack of a better word) and utilising these tools effectively from an early stage is easier for a small nimble start-up with nothing to loose.

Also, according to Wikipedia:
"Disruptive technologies are not always disruptive to customers, and often take a long time before they are significantly disruptive to established companies. They are often difficult to recognize. Indeed, as Christensen points out and studies have shown, it is often entirely rational for incumbent companies to ignore disruptive innovations, since they compare so badly with existing technologies or products, and the deceptively small market available for a disruptive innovation is often very small compared to the market for the established technology. Even if a disruptive innovation is recognized, existing businesses are often reluctant to take advantage of it, since it would involve competing with their existing (and more profitable) technological approach."

The Entrenched Player's Dilemma
The latter point leads to The Entrenched Player's Dilemma, which is featured in Wikinomics, as the authors attempted to find out why corporations resisted crowd sourcing and mass collaboration.

"The problem with mature companies is that the very commercial success of their products increases their dependency on them. Making radical changes in the product's capabilities, underlying architecture or associated business models could cannibalize sales or lead to costly realignments of strategy and business infrastructure. It's as though popular and widely adopted products become ossified, hardened by the inherent incentives to build on their own success. The result is that entrenched industry players are generally not motivated to develop or deploy disruptive technologies."

I think we can even take this phenomenon down to the indivual level, rather than look at abstract entities such as companies: "People who have built up power and status in a particular specialty are scared of change that calls the knowledge and experience that got them there irrelevant," says Carrie Lisa Brown in this brilliant post (I'm not so interested in the Jarvis/Rosenbaum dustup described in the intro, but the last five paragraphs give a great description of some of the reasons change in the newsroom is difficult and often met with resistance)

There: I think this is a pretty useful prism for decribing why change is so difficult for many media companies. It's also interesting because describing the obstacles is often the first step towards finding solutions. Most notably, I can think of one media company that has been successful perhaps exactly because, at least to some extent, it has managed to break away from The Entrenched Player's Dillemma - I'll return to that in a separate post later.


Mecom: no quick fix for Edda Media divestment

Mecom's management is aiming for a resolution for Edda Media before Christmas or New Year, according to employee representatives who spoke with Mecom-boss David Montgomery in Amsterdam today.

"We have received an update: it did not contribute to clarify the situation. Various alternatives are being explored further with the aim of reaching a conclusion before Christmas or New Year," an employee representative told Journalisten.no, expressing doubts that we'd see a resolution before 2009. Apart from selling Edda Media, other options that have been/are being explored: selling Mecom's stake in Rzeczpospolita to Alex Springer; selling a newspaper and a few printing operations in The Netherlands and inviting Mecom investors to invest more money.


Mecom: no news is bad news

All quiet from the Mecom camp, should there not be an RNS due today to clarify the situation??

The sentiment is taken from this share discussion for Mecom Grp (MEC.L) where commenters, presumbaly shareholders, are getting desperate for an update from Mecom on what's happening. So 'desperate' they turned to Google-translating Norwegian news articles, such as Journalisten's, yesterday, to find out what happened at yesterday's board meeting.

As I mentioned in the last update on my post from yesterday: it seems not much happened in regard to Edda Media, and Truls Velgaard, the current day-to-day boss of the Norwegian newspaper group, who attended the boardmeeting, later told employee reps that no decision was made about Edda's ownership structure. If you haven't followed the bidding process for Edda and that wording sounds less than straightforward, it's not: Mecom has actively explored ways of entering into a bigger parnertship or coalition in Norway, thereby increasing its assets, either in cash or holdings, while still retaining a stake in its Norwegian operation.

Update 15:54 CET: Employee representatives in Edda Media hope to get some answers from the management in a scheduled meeting in Amsterdam tomorrow, though Edda's future is not on the agenda. There's frustration among employee and union reps, some of whom desperately wanted a new owner for Christmas.

One commenter on the aforementioned chat board asked why Norwegian employees were so eager to leave Mecom. The short answer is that they were never eager to join. In some respects, this whole situation is a re-run of the drawn out process leading up to Orkla selling to Mecom in 2006: ironically, apart from Orkla, even the players are the same - A-pressen and Dagbladet's owners (Berner Gruppen) are the strongest prospective buyers now and were Mecom's strongest competitors back then.


Mecom expected to decide on sale of Norwegian division today

It is believed Mecom, the pan-European newspaper company led by former Mirror-boss David Montgomery, will conclude the drawn out bidding process for its Norwegian arm, Edda Media, in a board meeting today.

Rumours that moves were afoot to try to bring Edda Media, the Norwegian arm of Orkla Media, acquired by Mecom in 2006, back on Norwegian hands, have circulated in the country's media all year. In the last few weeks, it has become evident that the courting phase is drawing to an end, and Mecom's board may decide to enter into more formal sales negotiations with one of the interested parties. As reported a colleague of mine at Journalisten.no, A-pressen, the local newspaper group owned by Norway's Labour Union and Telenor, will conclude its due diligence process today, and Mecom's board is also expected to meet in London today.

Of the parties still vying for Edda, A-pressen is said to have offered roughly 2,3 - 2,5bn NOK for the entire group, Berner Gruppen, owners of Norwegian tabloid Dagbladet, a bit less, and Polaris Media about 600m NOK for Edda's North-western division. All parties are reported to have had access to a data room at Mecom's Norwegian lawyer, Thommessen, to scrutinize the financial health of the group mainly comprised of local and regional papers.

It has also been speculated that Polaris Media may team up with Berner Gruppen to submit a joint bid. Now, I guess an apology is due: I know many Mecom journalists and other Mecom followers read my blog as it has been, to my best knowledge, the only English news source consistently covering the company since the spring of 2006. However, I've refrained from blogging about it for some time, as it seemed pointless to repeat all the rumours circulating in Norwegian press this year.

And while we are on the issue of rumours: it has been put forward that the Alex Springer group may want to buy Mecom as a whole, a rumour vehemently denied by a spokesperson for the German group; and, alternatively, that they are keen to buy Mecom's stake in Rzeczpospolita, a rumour not so vehemently denied, but Truls Velgaard, the British company's Polish CEO who's recently taken over the day-to-day running of Edda Media, told me this was just loose speculations:

"There are no corresponding process in Poland to that taking place in Norway; Poland is not specifically defined as a sales object. The bidding process is furthest advances and most concrete in Norway. Mecom will consider selling certain other parts of its business, but not entire country divisions," he said.

In either case, divesting its Norwegian division may provide a welcome influx of cash for the highly geared pan-European media group, which has seen its share price plummet on the back of the financial crisis.

However, should Mecom decide to sell Edda to A-pressen, we can look forward to several new chapters in this colourful newspaper saga, as Norwegian media cross-ownership laws will demand high-level political negotiations for the acquisition to be approved.

Update 15:44 CET: its seems Mecom's board meeting is dragging out (link in Norwegian), the board is said to be discussing both the budget for 2009 and possible divestments, and could last until after LSE stops trading for the day.

Update 21:30 CET: looks like Norwegian journalists, both those employed by Edda and writing about the company, were waiting in vain for big news from London today: Velgaard, who attended today's board meeting, told employee representatives no decision on Edda was reached.

Monty møter giske 6 Montgomery may have to prepare for more talks with Norway's culture minister, Trond Giske (pictured here pouring the coffee) if Mecom's board opts for A-pressen's Edda bid.

(Photo courtesy of, and copyrighted to, my colleague Martin H. Jensen, who has allowed me to use it here for a beer)


The best take on Reed Elsevier cancelling RBI sale

"You missed your chance to buy me. Maybe getting a whole B2B publishing company thrown in was offputting? :)," Reed Business Information (RBI) blogging supremo Adam Tinworth commenting the news on his blog.

Do also check Rafat Ali's piece on the Reed Business Auction process and the possible next steps and Paul Conley's gloomy predictions for the future of B2B publishing (which I suspect adds up to: there is none, not in the industry's current form, but only had time to skim the post very superficially so far).


Media & The Credit Crunch; Media Industry Outlook 2009

Catching up with some of the many unread posts in my newsreader yesterday (busy days), I found this interesting Bloomberg-interview with ContentNext founder and publisher Rafat Ali, well worth listening to.

Paidcontent sums it up neatly as as Ali "giving a frank forecast of the climate for media and the economy in the next few months. It boils down to: layoffs, consolidation and pay-back time for social media.":