Local daily newspapers historically played an important role in U.S. democracy by informing citizens about local policy issues. In a panel of 1,610 unique newspapers, we show that private equity acquisitions—which have increased over time and affect 262 newspapers in our data—lead to declines in local election participation. Other ownership changes do not. This is best explained by private equity shifting the composition of news away from local governance, accompanied by fewer reporters and editors. It is not explained by survivorship. Overall, the provision of news that is crucial for successful local democracy appears sensitive to firm ownership.