Yucaipa Will Back Guild’s Efforts To Buy Nine KR Papers

The Newspaper Guild has a major ally in its efforts to be taken seriously by Knight Ridder as a suitor for nine unionized papers: the Yucaipa Companies headed by Ron Burkle. The private equity firm could fund the entire acquisition but the announced intent is to work with other PE firms already bidding. Burkle via the press release: “Yucaipa is ready to apply its resources and expertise to form a mutually beneficial alliance with one or more announced bidders for the Knight Ridder chain. We believe in the future potential of these papers.”
Knight Ridder has said it will only consider bids for the entire company. The Guild formed the ValuePlus Media Corporation in the hopes of acquiring the Akron Beacon Journal, Duluth News Tribune, Grand Forks Herald, Lexington Herald-Leader, The Monterey County Herald, Philadelphia Inquirer, Philadelphia Daily News, St. Paul Pioneer Press and the San Jose Mercury News. Combined, the papers have a circulation of 1.3 million and employee 7,000.
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