Money for nothing
One of the biggest media stories of the past year was the start up of a global news organization by New York Times media columnist Ben Smith and Bloomberg Media CEO Justin Smith (no relation).
They called it Semafor. It launched in October and is already making a splash in the media world.
It got off the ground thanks to some heavy-hitter investors. The biggest of all was Sam Bankman-Fried, who became Semafor’s largest outside investor by investing $10 million.
Then it all caved in for Bankman-Fried, whose crypto company went kaput and he became the target of the federal government for possible fraud.
So what about Semafor and all that money they took from him?
The New York Times’ Benjamin Mullin and David Yaffe-Bellany reported Wednesday that Semafor will buy out Bankman-Fried’s investment and look for new ways to raise money. In a statement, Justin Smith said, “We are planning to repurchase Sam Bankman-Fried’s interest in Semafor and to place the money into a separate account until the relevant legal authorities provide guidance as to where the money should be returned.”
Semafor is not the only media company that Bankman-Fried or his associates have invested in. Vox Media and ProPublica also have received money — money they said they would return after Bankman-Fried was arrested in December.
The Times wrote, “Until Semafor replaces Mr. Bankman-Fried’s investment, setting the cash aside would mean giving up the capital the company could have used for its early expansion.”
Weighing in with a good take
Columbia Journalism Review’s Jon Allsop spoke with former Washington Post media columnist Margaret Sullivan, now teaching at Duke University, about the coverage of documents found in the former office and home of President Joe Biden. Some are trying to compare the Biden documents story to that of the documents found at Donald Trump’s Mar-a-Lago home even though there are clear differences. The biggest is that Biden’s people found the documents and turned them over, while Trump ignored subpoenas and was anything but cooperative.
Sullivan, as you would expect, had some smart analysis of the coverage.
Sullivan told Allsop, “I think to me the coverage seemed a little bit more intent on describing the differences (between the Trump and Biden cases) before the second group of classified documents (in the Biden case) was being reported on. When it was just, sort of, Ten documents; who knows how classified they were?, it was just a small thing compared to the three hundred or so that Trump took to Mar-a-Lago. Then, when the ones were discovered at his home and stored with his Corvette in his garage, that seemed to ramp it up, and I think somewhat understandably so.”
There’s no question that the Biden document story is one to cover. But Allsop asked Sullivan if the media coverage has been too much, especially when there are stories like, “There are no visitors’ logs to Biden’s home.”
Sullivan said, “I think that there’s a great desire to keep this story alive and to plumb the depths of it in a way that it may not really deserve, but that is what the news media, and particularly the political news media, tends to do, so it’s not surprising. But it is disheartening to see. Because as much as there is a contrast drawn — and as much as the coverage is about how these two things are not exactly alike — the fact remains that you come away from the deluge of coverage thinking, Wow, this is a huge story. And that’s less because of the content of the coverage and more because of the volume of the coverage and the prominence of the coverage. So when it leads the evening newscast on two of the three major networks, that sends a very strong signal. It sends a stronger signal than Ah, well, these things are not really the same. It seems to say, This is huge.”
Layoffs at Microsoft
Microsoft is laying off 10,000 workers from now through March. Wow, 10,000 — although that is only about 5% of its workforce of approximately 221,000.
The New York Times’ Karen Weise wrote, “With the cuts, Microsoft becomes the latest tech giant to pull back after a few years of frenetic hiring, when the pandemic-fueled surge in online services and the expansion of cloud computing created fierce competition for tech talent.”
Microsoft’s chief executive Satya Nadella told staff, the layoffs “are the kinds of hard choices we have made throughout our 47-year history to remain a consequential company in this industry that is unforgiving to anyone who doesn’t adapt to platform shifts.”
Powerful commentary