Google used influence, ultimatum to cut deal on California news

Google was negotiating to spend $110 million to support California's struggling journalism industry, but the search giant had a demand: taxpayers would need to contribute tens of millions of dollars as well.


State Assemblywoman Buffy Wicks, the Oakland Democrat discussing a deal with Google, called California Governor Gavin Newsom's office to secure his support for $70 million from taxpayers, even as the state faced a challenging budget deficit. The pact that Google, the governor and Wicks settled on in late August was a handshake agreement, according to Wicks' staff. Weeks later, while there is now a written framework for the deal, some of the key provisions have yet to be worked out.



"This framework represents the most impactful deal we could reach amid the current political reality," Wicks said in a statement. "And it is just the beginning - I view it as the floor, not the ceiling, and am hopeful about our efforts to support California journalists."