Stagwell Group, an investment company in Washington, D.C. that specializes in advertising and marketing companies, has agreed to make a $100 million equity investment in MDC Partners, an ad agency holding group with dozens of brands but still considered tiny compared to major ad holding companies like Omnicom, WPP or Publicis.
Why it matters: Stagwell president and managing partner Mark Penn says there's a sweet spot in the ad agency world where he thinks his bet will pay off.
Details: Penn tells Axios that he has no plans to spin out any of MDC's individual companies, in part because semi-scale is part of his strategy.
"I think this scale [Stagwell and MDC] is the right one to achieve and leverage synergies and great talent and top accounts."
The big picture: Some industry execs have wondered whether Penn's political past, or the political affiliation associated with some of Stagwell's holding companies, could create a culture clash between the D.C.-based holding group and the New York-based MDC.
Yes, but: Penn says he's no longer the political hack that he used to be, although he does still participate in a lot of news commentary on cable channels.
Go deeper: Penn flipped on the Clintons last year
Facebook wants to deliver more local news, but there aren't enough local news outlets across the U.S. to do so, according to research the platform released Monday morning in conjunction with four academic researchers.
Why it matters: Facebook and rival Google have shouldered blame for creating local news deserts by upending the business models of small, local newspapers. Now, the tech giant wants to invest heavily to reverse that trend in order to provide users with the local news they crave.
By the numbers: 1 in 3 users in the U.S. live in places where Facebook cannot find enough local news on Facebook to launch "Today In," its local news section, which has been rolled out in 40 cities across the country so far.
Details: Facebook has partnered with four leading academics in news research, providing them with the raw data set to create solutions to solve the crisis.
Flashback: Anne Kornblut, Facebook's director of new initiatives, told Axios last month, "When we ask our users about what they want to see on Facebook, local news is their top pick. That's because Facebook as a platform is focused on community and community is local."
The bottom line: Facebook is investing heavily to try to fix this problem, but the problem is bigger than the platform.
Go deeper: Facebook's local news conundrum
Fox News has enjoyed record ratings over the past two years, but its close ties to the president and its commitment to right-wing opinion coverage is putting the network on the brink.
Driving the news: A series of damning reports over the past week has forced Fox News to issue statements addressing its values and judgment as a news company.
On Sunday, Media Matters of America, a progressive think-tank, released audio recordings of primetime host Tucker Carlson referring to women in derogatory terms years ago. It also released audio in which Carlson used racist and homophobic language.
Other drama: On Saturday, Fox News issued a statement condemning the comments of host Jeanine Pirro, after she said that Rep. Ilhan Omar's use of a hijab was antithetical to the U.S. Constitution.
Why it matters: History shows that these scandals likely won't impact Fox's ratings or popularity among loyal conservative viewers. But they do make it harder for the network to land certain interviews and partnerships that could drive lucrative programming opportunities, like debates.
Be smart: Despite Fox's reputation as a megaphone for the White House, it does employ credible journalists that want to do good work and may not feel empowered to do so if Fox doesn’t address these issues.
The big picture: Last week's series of critical reports shows how difficult it is for the network to balance news programming with opinion personalities whose actions and words draw high ratings, but are often at odds with the professed mission of the network.
