NYT: (Knight Ridder) Agrees to a Sale for $4.5 Billion (to McClatchy)

[Newsjock]

http://nytimes.com/2006/03/13/business/media/13knight.html?hp&ex=1142226000&en=b23d4ab09c28a5c1&ei=5094&partner=homepage

Knight Ridder, the second-largest newspaper company in the United States, agreed Sunday night to sell itself for about $4.5 billion in cash and stock to the McClatchy Company, a publisher half its size, according to people involved in the negotiations.

The deal, which is expected to be announced Monday, comes as the newspaper industry is gripped by uncertainty. Readers have begun to drift away from printed newspapers as their Web sites have experienced sharp gains in use.

... Still, the prospect of a McClatchy takeover may bring some relief within Knight Ridder, where some had feared a takeover by investors who had little newspaper experience and were likely to strip down the properties and eventually sell them off.

McClatchy has one of the strongest track records in the newspaper business, both for award-winning journalism in its generally small and medium circulation categories, and financially. The industry has faced declining circulation and falling stock prices in the last several years, but McClatchy, through the end of 2004, had 20 consecutive years of circulation increases and 10 consecutive years in which its stock grew at the highest rate of any newspaper stock.

[Ouabache]

1. It would be great if this outfit is a liberal one

fat chance, huh?

[Dr Ron]

2. I don't care if the owners are liberal . . .

as long as they allow Knight Ridder to continue the same for of journalism. No need to necessarily be liberal or conservative as long as they continue to expose dishonesty from government regardless of who is in power.

[seafan]

3. Here's some info from a thread from blm

There may be reason to rejoice on KnightRidder sale. Latest word is.....

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=364x629748

[hlthe2b]

4. That's the best possible outcome from what I understood....

Is that your viewpoint, Newsjock? Other news biz folks?

[RagingInMiami]

5. Great news

[Greylyn58]

6. I use to work for The Charlotte Observer

one of Knight Ridders papers, but was laid-off in 2003 because of the down-turn in the industry.

Yesterday, I ran into an old friend from the Observer and she told me about this deal. She said everyone was hoping for this as it would put some money back into the company. I'm glad to hear that this is going through--for their sakes.

[MnFats]

7. NYT: McCLatchy will buy Knight-Ridder

this could mean the Twin Cities will no longer be a two-newspaper town...lots of other implications, too.

www.poynter.org
night Ridder Newspaper Chain Agrees to Sale

* Sign In to E-Mail This
* Printer-Friendly
* Reprints
* Save Article

A

Knight Ridder, the second-largest newspaper company in the United States, agreed Sunday night to sell itself for about $4.5 billion in cash and stock to the McClatchy Company, a publisher half its size, according to people involved in the negotiations.


The deal, which is expected to be announced Monday, comes as the newspaper industry is gripped by uncertainty. Readers have begun to drift away from printed newspapers as their Web sites have experienced sharp gains in use.

The sale could help assuage some investors who are nervous about the values of newspaper companies, however, because Knight Ridder commanded a premium of about 25 percent for its shares from the time it put itself up for sale in November under pressure from shareholders who were unhappy with performance of its stock.

Still, McClatchy, which is based in Sacramento and publishes The Sacramento Bee and The Minneapolis Star Tribune, among others, was the only major newspaper company to submit a final bid for Knight Ridder, publisher of 32 daily newspapers, including such venerable papers as The Miami Herald, The Philadelphia Inquirer and The San Jose Mercury News.

[NorthernSun]

8. McClatchy

Maybe now the St. Paul Pioneer Press will be readable.

[MnFats]

9. still....two newspaper voices are better than one...

the PiPress ed page is sometimes ridiculously conservative but on occasion it kicks ass.

[Blue_Tires]

11. maybe now someone will start hiring this out-of-work reporter

yeah right!

[swag]

10. Report: McClatchy Buying Knight Ridder

http://biz.yahoo.com/ap/060313/knight_ridder_mcclatchy.html?.v=3

Monday March 13, 4:32 am ET
By Seth Sutel, AP Business Writer

NEW YORK (AP) -- Knight Ridder Inc., the nation's second-largest newspaper company, has agreed to be sold to rival chain McClatchy Co. for about $4.5 billion in cash and stock, according to published accounts.

The deal would mark the end of 32-year-old Knight Ridder and would fold its 32 papers, including The Miami Herald and The Philadelphia Inquirer, into McClatchy's stable of titles that already includes The Sacramento Bee and The News & Observer in Raleigh, N.C.

The New York Times and Wall Street Journal, citing unidentified sources involved in the negotiations, said Knight Ridder agreed Sunday night to the deal, which was expected to be announced Monday. The papers said McClatchy agreed to pay about $67 a share in cash and stock for Knight Ridder.

. . .

McClatchy is based in Sacramento, Calif., where it publishes The Sacramento Bee and 11 other newspapers including The Fresno Bee. Last year, McClatchy had revenues of $1.19 billion, compared to Knight Ridder's $3 billion.

. . .