Business Journal: McClatchy Shares Steady
Shares of the McClatchy Company held steady Wednesday after Tuesday's announcement that it would sell the Minneapolis Star Tribune.
Wednesday, December 27, 2006
McClatchy paid $1.2 billion for the Star Tribune eight years ago … and just agreed to sell it to for only $530 million … a paper loss of six hundred million dollars on their asset. But analysts live in the moment … and newspaper properties aren’t hot properties. They’re applauding the extra $160 million dollar tax advantage that comes with the deal. The Star Tribune’s growth rate doesn’t match that of other McClatchy properties, as Goldman Sachs analyst points out. The fact that two thirds of its work force is unionized also constitutes a liability in an era of contraction. So the stock closed down for the day by just a penny.