New stakeholders for newspapers

The state of New Hampshire has apparently decided to start underwriting newspaper ventures. The piece foretells other governmental ventures into our industry, where ad revenues continue to make shareholders nervous.

Many distinct sides to this equation: Can democracy prosper without detailed coverage of its inner workings? Does anyone care any more? Do news consumers want to be affirmed, rather than informed? Can the best interests of readers be preserved with government as an equity stakeholder in a journalistic organization?

Is it a good idea to have government as a stakeholder in journalism? Your thoughts?