McClatchy Buys Knight Ridder in $6.5 Billion Deal
In a deal purported to be worth $4.5 billion, McClatchy purchased all 32 Knight Ridder publications, and has announced plans to divesttwelve of them, including the News Sentinel, the Journal Gazette, and the Pulitzer Prize-winning San Jose Mercury News.
On behalf of the soon-to-be divested papers, The Newspaper Guild released the following statement: “We are working, in partnership with the Yucaipa Companies of Los Angeles to create a worker-friendly and customer-friendly company to buy and improve our newspapers and their online services.”
Under this arrangement, the divested papers would be partially-owned by the employees, with the majority of funding coming from Yucaipa.
Still, tensions are high at the offices of the papers slated for divestment, as their future plans hang in the balance.
All Spanish-language sister publications of the divested papers will also be divested, including the San Jose Mercury News' Nuevo Mundo.
Look to Portada in the coming weeks to follow-up with the latest news surrounding this wave-making deal.
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