My country (Sweden) has a state-sponsonsored news outlet. It is one of the most biased ones.
Several other countries in Europe has the same model and it just doesn't work.
Several other countries in Europe has the same model and it just doesn't work.
I think there might be a solution where state funds support a local-news system, where the funds are institutionally separated from influence - maybe similar to how the Fed is supported by the State yet remains politically separate from it (ideally).
There are institutional structures beyond the state and market that can produce public goods.