In the mid-2010s, VC-backed media like BuzzFeed operated under a "growth at all costs" mandate where achieving profitability was seen as a failure to spend enough on expansion. This created an unsustainable competitive landscape for privately-owned, profit-focused businesses that couldn't afford to "sell $1 for 50 cents."

Scott Galloway argues that saving a brand like The Washington Post requires more than reinvention. The key is aggressive consolidation (e.g., merging with Bloomberg or NYT) to eliminate overhead and fix an unsustainable cost structure, possibly via a prepackaged bankruptcy.

Instead of focusing on vital local civics journalism, national chains reoriented their local papers to chase clicks with national news. This strategy failed because it alienated local readers and couldn't compete on scale, while locally-owned papers that stuck to community coverage fared better.

The company's financial turnaround wasn't about reviving the declining print business. Instead, the strategy was to accept print's structural decline and aggressively grow new revenue streams—like digital subscriptions and events—at a rate that more than offset the legacy losses.

Contrary to the narrative that PE firms create leaner, more efficient companies, the data reveals a starkly different reality. The debt-loading and cost-cutting tactics inherent in the PE model dramatically increase a portfolio company's risk of failure.

Founders should avoid private equity because its focus on short-term financial returns leads to "death by a thousand cuts." A simple decision, like switching to a cheaper music service to improve margins, can directly lower crew morale, which in turn hurts customer service and slowly degrades the brand.

The fragmented ecosystem of independent news is fragile and inefficient. The next phase requires consolidation. The key, per IndieGraph's founder, is for mergers to be driven by public interest and sustainability, not the purely commercial motives that hollowed out legacy media.

Traditional PE's "buy and flip" mindset creates a cultural disconnect. Lower-middle market businesses are deeply ingrained in their communities, and ignoring this legacy in favor of pure financial engineering alienates employees and loyal customers who dislike change.

Traditional media companies, facing financial pressure, make a critical error by laying off journalists—the people who create the product and build trust. This flawed cost-cutting strategy, which often spares sales and operations teams, hollows out the core value proposition of news organizations.