Well, that word is a big of mouthful. I even have to slow down to make sure I type it correctly. Sensationalization.
Anyway. I get a morning email each day of the top stories from GoLocalProv.com, which include some headlines and a brief blurb about the story. So this morning when I saw there were some “secret” documents uncovered, I couldn’t wait to see it. Additionally, Helen Glover has the “Big Story of the Day” around 7:40 each morning and this was the topic and how exciting it was that these secret documents were discovered. So what were they about?
They explained that lending money to 38 Studios was a huge risk. One that should not be taken lightly. These disclosures were made to another potential investor in 2009, when the company was seeking a $25M loan. However, similar documents were not made available to the EDC prior to backing the $75M loan to the company.
Is that a big deal? I don’t know, maybe. Should the company have offered the same disclosure to the EDC? Of course. However, this seems like an attempt to imply that something really dastardly or underhanded was done here and possibly give a reason for why the EDC didn’t properly evaluate the risk. C’mon. If the EDC didn’t have any idea of the risk without being told that it was a high risk, then they are far more incompetent than we could have previously imagined. I mean, if the EDC were handed these documents, do we really think that then they would have thought to themselves, “Oh, this really is a big risk. We don’t want to do this deal.” Seriously? They had no idea that the full investment could be lost? I dabble in the stock market every so often and I fully understand that all the money I put into it could be completely lost. I’m aware of that kind of risk. If I’m aware of it at this level, then how in the world could the EDC be unaware of it at their level without that disclosure? Clearly, they weren’t unaware. They knew at least that much. So when you take that away, what then is really the big secret?
I can understand what GoLocalProv is trying to do. They’re new, trying to establish themselves in this media market, trying to take on the Journal head on. I get that. But they have some great writers over there that work hard and do some excellent work. I’m not sure that the headline writers need to embellish quite so much. This wasn’t the first time I read an article and felt the content didn’t quite match the excitement of the headline. Eventually, you get a “Boy Who Cried Wolf” mentality with that kind of stuff, but like I said, the writers are great, so that in itself keeps you coming back.