Short-sighted at best. Goodbye news site.The news sites already tried it Google's way for more than a decade, and it isn't working for them. It only works for Google.
As someone clearly entrenched in the tech echo chamber, it will come as a surprise for you to learn that there are many news organizations that do not give their content away for free on the internet.
Some have paywalls. Some require paid apps. Some are -shudder- only available as dead trees.
Many of them are thriving.
My wife pays upwards of $2,000/year for a publication that is not available in any form on the internet. It has offices and reporters in a dozen cities around the world, and continues to grow.
It, and others like it, don't need to suckle at the teat of Google for pennies.