In recent years, local media in the U.S. have faced increasing economic precarity, and many newspapers have been purchased by hedge funds and private equity firms. How do investment owners shape the newspapers they acquire? We document the shift in ownership and its impact on the number and type of journalists that local newsrooms employ. Using over 13,000 digitized media directory pages, we measure the newsrooms of 211 major newspapers from 2005 to 2022. We estimate that the acquisition of a newspaper by an investment owner reduced the paper’s newsroom by nine reporters and editors compared to newspapers that remained under other ownership, a cut equivalent to 14 percent of the average newspaper’s staff. These cuts were concentrated among positions focused on general assignment and political reporting. Our findings indicate the rise of investment owners has accelerated the decline of local newspapers.
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