Blog Post

It’s Official: McClatchy Sells Four Papers for $1 Billion To MediaNews; Hearst Involved

Technically, McClatchy doesn’t yet own any KR papers so what it has done is agree to sell four papers to MediaNews in a complicated $1 billion deal that involves Hearst. MediaNews will buy the Mercury News and Contra Costa Times. Two additional papers — the Monterey (CA) Herald and the St. Paul Pioneer Press — will be acquired by Hearsy, then turned over to MediaNews in exchange for an equity investment in non-Bay Area MediaNews assets. All of this, including the KR sale to McClatchy, is subject to regulatory approval. If the Hearst-MediaNews deal doesn’t get such approval, MediaNews has agreed to buy the papers from Hearst.
The complications don’t end there. MediaNews will contribute the Mercury News and CCT to California Newspapers Partnership; MediaNews hold 54.23 percent of that partnership. The other partners — Gannett and Stephens Media — will pick up their proportionate share of the cost of acquiring the two Northern California papers. MediaNews will borrow its part