McClatchy has plenty of challenges right now. Their investment rating was lowered in March after their four and a half billion dollar acquisition bid for Knight Ridder’s newspaper chain was accepted. And now their first quarter earnings have fallen 14% compared to a year ago. The company points to lower national and automotive advertising in their 12 daily newspapers, apart from Knight Ridder, which include the Sacramento, Modesto and Fresno Bees. 

But many investors are waiting to see if McClatchy can successfully sell 12 of Knight Ridder’s papers, as planned, and make a success of the 20 remaining newspapers coming under their control. That story will unfold in the months ahead.