Sale Of Illinois Newspapers To Kentucky Firm May Conflict With State Law

The sale of eight Illinois newspapers to Paxton Media Group (PMG) earlier this month is causing a pushback in the state. 

Some sources fear that the sale to Kentucky-based PMG runs up against the state’s Strengthening Community Media Act, which took effect on January 1. 

The law requires that interested stakeholders, including employees, local officials, potential rival bidders and the state’s Department of Commerce and Economic Opportunity, be given 120 days notice prior to a sale, according to Capitol News Illinois.

Such notice allegedly was not given in this case. 

Observers concede that the law lacks penalties for violations or any sense of who is responsible for enforcement, Capitol News Illinois continues.

The purpose of the law is to make sure local entities have a fair chance to bid, and by extension to prevent news deserts from emerging in the state.

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But sometimes publishers must accept an offer to prevent the collapse of the enterprise. 

PMG acquired the Illinois newspapers — and eight in Missouri — from Better Newspapers, Inc.

Scott Hoskins, who took over as president of Better Newspapers after founder Greg Hoskins died in 2024, said: “It is time for our family to move on, and we believe we found the best steward for our family legacy in Jamie Paxton and Paxton Media Group.”

Last year, PMG said it would consolidate several Illinois newsrooms it owned into one hub. This agnostic platform would cost $2 million. 

In a separate episode, the devastating closure of News Media Corp. on August 6 was partly mitigated by the purchase of four newspapers by Shaw Media in Northern Illinois. But Shaw Media is a local company. 

 

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