No More Knight Ridder; Street Not Thrilled With McClatchy Acquisition

Knight Ridder has left the building … Enter McClatchy, which has shown an ability to integrate acquisitions but now faces the challenge of swallowing a larger organization. The company is already divesting a dozen papers to cover part of the roughly $4 billion deal. (McClatchy also assumes $2 million in debt.) The papers remain part of the chain until the various deals close. McClatchy also must deal with a skepital analyst and investor community; the share price has dropped more than 20 percent since the announcement that it won the KR bidding. As the Mercury News notes, the value of the deal has dropped 10.8 percent.
KR ceased to exist when the market closed June 27. All of our KR coverage can be found in our Knight Ridder archive.
Update: Missed this piece on SilconBeat earlier in the week. Leapfrog Ventures’ Peter Rip, who managed KR’s investments in start-ups via KR Ventures back in the late ’90s: “The real irony of this situation is that for 15 years KRI was, by far, the most innovative newspaper company in the country, including its early experiments in teletext and having the first online newspaper (the Mercury News on AOL in the mid 90s). … the Web presented a double whammy to newspapers everywhere. KRI was especially susceptible to these issues because its circulation was concentrated in metro markets like the Bay Area, Miami, and Philadelphia — markets where Internet penetration and usage of online services are highest. That makes it the first high profile victim, not the last.”
Update: At 4 p.m. Thursday, locally owned Philadelphia Media Holdings took ownership of the Philadelphia Inquirer, Daily News and Philly.com. Technically, as Inquirer Editorial Page Editor Chris Satullo just told the crowd at Media Giraffe, he worked for three owners in two days. He also said he feels like someone who’s been in prison for 17 years and was just set free.
The Duluth News, the Grand Forks Herald, the Aberdeen American News and the Ft. Wayne News Sentinel/controlling interest in Ft. Wayne JOA also have changed hands.