For private-equity firms exploring the acquisition of Knight Ridder, the question isn’t where the newspaper company is headed for the long-term — they just want to be sure they can get out after a few years with a profit. Robert Broadwater, head of the newspaper merger practice at New York media investment bank Veronis Suhler Stevenson, tells Dow Jones: “It’s a very attractive deal to finance with all of the recurring revenue from circulation and advertising, which would argue for a private-equity investment. The only issue is its residual value and who would take it off your hands in five years.”
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