Business Journal: McClatchy Sells Papers
The McClatchy Corporation agreed Wednesday to sell four newspapers it acquired from Knight Ridder for a billion dollars.
Wednesday, April 26, 2006
Media News & the Hearst corporation are jointly buying these newspapers. Media News will control the San Jose Mercury and the contra Costa Times. New York-based Hearst will control the Monterey Herald and the St. Paul Pioneer Press. Other conditions then apply between the buyers, if regulators approve. McClatchy will now have 8 more Knight Ridder papers to sell. They plan to keep 20 Knight Ridder dailies. Ever since McClatchy agreed in March to pay $4.5 billion for the chain’s newspapers, its debt rating and stock price have fallen. This could be the first step to regaining the confidence of Wall Street.