The McClatchy Company which earlier this year bought Knight Ridder for $4.5 billion sold the Minneapolis Star Tribune to, you guessed it, a private equity firm for $530 million. Avista Capital Partners is the firm of the moment. In a press release McClatchy said Avista tried snagging the two Philadelphia newspapers earlier this year. McClatchy will use the cash to pay off debt from the Knight Ridder deal.
paidContent.org notes the “sale price is much less than the $1.2 billion McClatchy paid to buy the Star Tribune from Cowles Media Co. in 1998.” At $530 million the paper is a better growth prospect than at $1.2 billion. We’ll all wait and see how they’ll get growth out of rapidly-changing business.