In 2024, the Los Angeles Times faced significant financial challenges under the ownership of Dr. Patrick Soon-Shiong, reportedly losing around $50 million following a $30 million loss in 2023. The newspaper's struggles were linked to controversial editorial decisions that shifted its political stance to the right, such as hiring conservative writers and revoking its presidential endorsement of Kamala Harris. These moves led to a substantial drop in digital subscribers and overall readership, which fell far short of the publisher’s ambitious targets. Additionally, external factors like the Pacific Palisades fires further strained revenue streams.
Controversial Choices and Financial Decline
In an era marked by shifting media landscapes, the Los Angeles Times experienced turbulent times during a pivotal period. Under the leadership of Dr. Patrick Soon-Shiong, the publication encountered mounting financial difficulties. In the span of two years, the paper reportedly lost approximately $80 million. This decline was partly attributed to a series of contentious editorial choices made by Soon-Shiong that steered the paper politically toward the right. Among these decisions was the inclusion of prominent conservative voices and the controversial retraction of its endorsement for Kamala Harris in October, resulting in the defection of roughly 23,000 digital subscribers by January.
By early 2025, total subscribers dwindled to about 335,000, falling drastically short of the publisher's aspiration of reaching 5 million readers. Compounding these challenges, the Pacific Palisades fires damaged affluent neighborhoods with high concentrations of valuable print subscribers, further exacerbating revenue losses.
Dr. Soon-Shiong has become increasingly involved in the day-to-day operations of the paper. In a podcast interview with Tucker Carlson, he defended his decision to rescind the Harris endorsement, emphasizing the importance of factual opinions over partisan leanings. While acknowledging the subsequent loss of thousands of viewers, he expressed concern about the culture of cancellation within society. In a letter to readers, Soon-Shiong outlined new initiatives incorporating AI technology to provide diverse perspectives and enhance content distinction between news and opinion pieces.
The publication remains committed to its mission of considering varied viewpoints, even those contrary to its own, aiming to enrich its readers' understanding.
A Journalist's Perspective on Media Evolution
This situation highlights the complex dynamics at play in today’s evolving media environment. It serves as a reminder of the delicate balance required between maintaining journalistic integrity and catering to audience preferences. As publications navigate these uncharted waters, embracing innovation while staying true to core values will be crucial. Dr. Soon-Shiong’s approach underscores the challenge of aligning editorial direction with reader expectations in an increasingly polarized world. Whether this strategy ultimately proves successful remains to be seen, but it certainly sparks important conversations about the future of journalism.