He Bought a Local Newspaper and Now Makes $600K/Year

What if buying a local newspaper could be your path to purpose and profit? In an age of digital giants, small-town papers still hold untapped wealth and community influence.

The Succession Crisis in Small-Town Newspapers

Across the United States, hundreds of local newspapers face closure not because they’re unprofitable but because the owners—often in their 70s or 80s—have no one to pass the torch to. A widely shared tweet from Media Gazer highlights that small-town newspapers are shutting down in nearly a dozen states due to “lack of a succession plan, not financial issues.” While many of these papers generate six-figure profits, their unique role in community cohesion is at risk of disappearing. The real tension lies in the generational gap: aging owners ready to retire, but no eager buyers to carry on the legacy.

Matthew Prince’s Unconventional Advice

Matthew Prince, billionaire co-founder and CEO of Cloudflare, laid out an unconventional recipe for a fulfilling life: buy a small-town newspaper. In a viral Twitter exchange, he urged recent college graduates unsure of their next step to:

“Find a small town you could love with a local newspaper whose owners are ready to retire. Raise the capital to buy it. Run it with the community’s interest at heart. You’ll not get too rich, but you’ll do well. More importantly, you’ll be a hero to the community and have influence even early in your career.” [verify]

His point was simple: zooming in on meaning over raw wealth can lead to unexpected rewards. Prince went on to note, quoting Warren Buffett, that “surprisingly little changes when you move from upper middle class to truly rich. Houses are houses, cars are cars, and watches are stupid.” He concluded that “meaning beats money early in your career,” and pointed to Rupert Murdoch—who bought the Adelaide Advertiser at age 21—as a proof point that media ownership can be a powerful springboard.

Why Local Newspapers Still Make Money

Contrary to popular belief, many small-town newspapers are cash-flow positive. Prince revealed that the paper he acquired was generating roughly $600,000 a year in free cash flow. Local businesses—from hardware stores to hospitals—rely on these publications to reach loyal subscribers. Advertisers appreciate the paper’s penetration: when households read your stories, they trust the pages they thumb through each week. According to replies on Prince’s tweet, owners routinely report EBITDA margins north of 30 percent, with some making six figures before taxes. These aren’t scalable tech ventures, but they are stable “monopoly” businesses in their niche—prized assets for someone who can marry community engagement with sound operations.

The Case for Starter Businesses

Buying a local newspaper exemplifies the concept of a “starter business” or “white belt business.” These ventures are manageable in scale, teach foundational entrepreneurial skills, and expose owners to real customer needs. When I spoke at Berkeley about starter ventures, I recalled how early in my career I needed small, bite-sized challenges to build resilience. Instead of hunting for the next unicorn, you might opt for a business with predictable margins, steady cash flow, and a tight-knit customer base. In the newspaper model, you learn to manage print schedules, negotiate ad rates, lead a small editorial team, and align your product with local interests—skills that translate to any future venture.

Lessons from Visionary Leaders

History is full of leaders who prioritized mission and team over ego. On the Acquired podcast, Steve Ballmer recounted how he convinced Microsoft co-founder Satya Nadella to hire and report to a more technically skilled executive, Keyvan. Ballmer’s willingness to cede power for the greater good signaled maturity and earned trust, paving the way for Nadella’s eventual ascension to CEO and Microsoft’s subsequent $3 trillion valuation. The lesson? Prioritize talent, mission, and humility over clinging to personal pride.

Similarly, in politics, charismatic figures break through with authentic storytelling. A 32-year-old New York mayoral candidate used raw, on-the-street TikTok videos to spotlight “halalflation”—the rising cost of a halal food truck platter. By interviewing vendors about permit fees and the true cost breakdown, he bypassed traditional polished campaign ads. Viewers saw a genuine advocate, not a distant politician. This approach echoes modern user-generated content (UGC) tactics in e-commerce, where rough-around-the-edges videos outperform slick commercials by feeling trustworthy and relatable.

The Rise of Authentic Storytelling

Whether you’re selling subscriptions or running for office, storytelling is the secret sauce. Politicians and brands alike now leverage short-form, unpolished video—shots captured on a phone, candid interviews, and unscripted reactions—to build trust. In e-commerce, UGC ads featuring real customers opening packages have outperformed studio productions for years. Today, anyone can build a small AI-powered engine to generate dozens of videos weekly: an idea-generator agent scours social media trends, a scriptwriter agent crafts a one-minute pitch, and a video‐maker agent produces content using an AI avatar. With automation handling scheduling and performance analysis, you can maintain a relentless cadence of authentic communication that resonates deeply with your audience.

Conclusion

Owning a local newspaper may not make you the next tech billionaire, but it can deliver stable wealth, community impact, and a genuine sense of purpose. In a “business” landscape crowded with startups chasing scale, small-town newspapers offer a rare combination of financial viability and positive social influence.

• Actionable Takeaway: If you value community, steady profits, and hands-on leadership experience, explore purchasing a local newspaper near you—your chance to build meaningful wealth while serving a real community.

How does this path align with your career goals? Would you consider becoming a small-town publisher and champion for local stories?