Mediawatch: A war of letters at NZME
The Weekend Herald reports the power play prompted by a billionaire investor.
Photo:
Weekend Herald / NZME
Activist shareholders of one of our most important media companies are trying to persuade others that NZME's future would be better off in their hands. The current directors and the journalists' union warn that would put it at risk, along with the editorial independence of its news. Frustratingly, the battle is playing out behind the scenes and in exchanges of letters.
"Concern is now growing amongst journalists and staff over a possible move or a shift in editorial direction," Newstalk ZB reported back in early March when expat Canadian billionaire Jim Grenon's plans to clean out the board of NZME first became clear.
Staff were, and still are, concerned about Grenon influencing coverage, especially on subjects such as vaccine safety, co-governance and climate science which pre-occupy
The Centrist
, an alternative news website which Grenon helped to found.
It describes itself as presenting "under-served perspectives while emphasising reason-based analysis, even if it might be too hot for mainstream media to handle."
What
Stuff called "Grenon's billionaire coup"
seemed almost a foregone conclusion back in March.
He claimed he had the support of 37 percent of
NZME
shareholders to ditch the current directors and install himself and three handpicked candidates on the board instead.
By late March, he
claimed to have the backing
of 47 percent of shareholders, just short of the majority needed.
But lately, doubts about the business plan and concerns about editorial independence - as well as the management skills of Grenon and his allies - seem to have been chipping away at his support, ahead of the crucial
NZME
shareholders' meeting on 3 June.
While he told the
NZME
board in April "
resistance is futile
," he also acknowledged some of his backers softening their support.
Key NZME shareholder Roger Colman has tried to get Grenon to
temper his ambitions
. He said Grenon should get a seat on the board, but not the three he wants for his allies.
Meanwhile, the journalist's union E Tū has kept the pressure on, exchanging open letters with the billionaire.
It's
first missive
on 13 March called on Grenon to guarantee he would not interfere in
NZME
editorial decisions.
Grenon replied with
an almost Socratic open letter
of his own in late-March which raised a series of further questions. What is editorial independence? Isn't it already limited by things like editors and advertisers? Shouldn't the board have an interest in editorial content given it impacts the company's bottom line?
The union
wrote back
repeating its call for a firm commitment to editorial independence.
NZME's
current board then said it was also concerned that Grenon's takeover bid was an effort for "
control over a newsroom, rather than anything else
".
The criticism seems to have prompted a push to tamp down the worry from Grenon's camp.
Former Newstalk ZB Plus editor Philip Crump, who Grenon wants to chair a new NZME editorial board, has penned a
post on Substack
saying his billionaire backer isn't radical, and won't seek to make the Herald serve the same purpose as The Centrist.
He argues journalists will welcome many of his own - and Grenon's - proposals, which include restoring the Herald's editor to NZME's executive leadership team.
But Crump has also faced criticism of his own.
"Having worked in the same newsroom as Philip Crump, we do not believe he has the experience, ability, or mana to take on what would be an influential role," E Tū's union representative Isaac Davison - also a senior Herald reporter - said
in a detailed response
to Grenon in mid-April.
"We're committed to listening, collaborating, and delivering measurable improvements in both financial performance and editorial quality," he added.
"I encourage everyone - shareholders, journalists, and readers - to engage with our vision for NZME," Crump said in his recent Substack post.
But he declined to discuss the vision on
Mediawatch
this week.
Photo:
E Tū organiser and spokesperson Michael Wood is the only player in the process willing to be interviewed on the record so far.
He told
Mediawatch
E Tū remains deeply concerned about Grenon's intentions, in spite of Grenon's recent endorsement of NZME and E Tū's
%20for %20truth %20and %20the,to %20ethical %20and %20professional %20standards journalistic codes of ethics
.
"At the same time as making that statement, Mr Greenon has refused on multiple occasions to make a very clear affirmation that he will respect editorial independence by not intervening in editorial processes at NZME," he said.
Wood said E Tu remained concerned at Grenon's stated intention to "act as an owner-operator" and his comments about delving into NZME's operational affairs.
He feared an editorial board headed by Crump would be stacked with people who align with Grenon's views.
That would clash with E Tū's code of ethics, even if Grenon said he supports it, Wood said.
"We don't think that NZME is a perfect organisation, but we do not see the kind of systemic interference in editorial decision-making that there are legitimate concerns around Mr Grenon carrying out."
Crump's Substack post last week insisted Grenon wasn't trying to enforce his views on NZME's newsrooms.
"Contrary to much of the media commentary, this is not about an individual pushing a political agenda or upending the newsroom - it's about ensuring that NZME's journalism is robust, balanced, and trusted by New Zealanders," Crump wrote.
"NZME, through the
New Zealand Herald
and its other platforms, provides news, analysis, and commentary essential for our democracy to function and thrive."
But Wood said that Grenon and his backers should front up to questions from journalists if they want those claims to be believed.
He saw a conflict in Grenon criticising the media for having undisclosed agendas - and NZME's own financial reporting under the current regime - while refusing to put his own views on the record in interviews.
"Someone coming in and attempting to take over New Zealand's largest media organisation isn't just a matter of private commercial interest - it is a matter of public interest. And the people who are involved in a pretty audacious exercise should be willing to face some scrutiny," Wood told
Mediawatch
.
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