Tuesday, January 9, 2007
Minneapolis Flagship Newspaper Sold
Associated Press
Published: 1/4/2007
Excerpt:
McClatchy Co. says it is selling the Star Tribune newspaper to the private equity firm Avista Capital Partners for $530 million, a sharp drop from the $1.2 billion it paid to acquire the flagship property just eight years ago.
McClatchy sold its largest newspaper in part because it can take a tax loss, and because the newspaper's growth had tapered off, said Chairman and CEO Gary Pruitt.
McClatchy spent $4.5 billion in early 2005 to buy the Knight-Ridder newspaper group. As part of that deal it sold off 12 newspapers for a profit, generating a tax bill that will be offset by the loss on the Star Tribune. That tax benefit is worth $160 million, raising the total value of the deal to $690 million, the company said. McClatchy plans to use the money to pay down a portion of its projected $3.3 billion debt.
Pruitt said McClatchy has no plans to sell any other newspapers. ...
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