Star Tribune Newspaper Sold by McClatchy To PE Firm For $530 Million

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The Star Tribune, the flagship newspaper of the McClatchy, is being sold to a private equity firm Avista Capital Partners for $530 million. This follows McClatchy’s purchase of Knight Ridder for $4.5 billion earlier this year, and selling off about 12 papers as part of portfolio reevaluation.
The Minneapolis, MN-based paper’s sale price is much less than the $1.2 billion McClatchy paid to buy the Star Tribune from Cowles Media Co. in 1998.
The deal covers the newspaper as well as other publications and websites related to the newspaper. McClatchy has no plans to divest further newspapers. Some more details in the release here.
Updated: AP: So was buying the Star Tribune in 1998 a mistake for McClatchy? McClatchy CEO Gary Pruitt said it wasn’t. He said Avista paid an attractive price for the paper, and that the Star Tribune was the only paper it could sell at a loss to get a tax benefit at a time when McClatchy needs one. And he said McClatchy has collected more than $1 billion in cash flow from Star Tribune operations during those years.

3 Comments

tish grier

woah, AK! you're way off on FresnoFamous and ModestoFamous. What Jara Euston's done with those two sites is what the Strib's desiring to do with Vita.mn (which they launched in November).

She accomplished what the Strib is only trying, now.

And if you look at Vita.mn, many of its features reflect features on FF…

and why always assume it's a *male* who created the cit j site? Some of the best cit j' in this country are female (ever hear of Baristanet or H2oTown?) There are just as many women, of many ages, doing cit j and not so many male "kids" as you think.

BTW, I broke the FF story on <a href="http://spap-oop.blogspot.com/2006/12/citizen-journalism-site-fresno-famous.html">Constant Observer</a> back on 12/15.

Ak

how much did McC pay for the fresno and modesto sites? My guess is they hired the kid who created the sites and gave him a few bucks for the URLs. Selling the strib is a major business move; acquiring two local CitJ sites is a tiny tiny step forward. I'd agree it was quite likely a very smart decision but it hardly deserves to be mentioned in the same breath as the strib sale.

tish grier

but McClatchy also purchased citizen media sites FresnoFamous.com and ModestoFamous.com….maybe it's not what McClatchy's selling that we need to look at, but what McClatchy is *buying*….

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