The waiting is over

McClatchy press release:

McCLATCHY TO SELL

PHILADELPHIA NEWSPAPERS

TO LOCAL INVESTORS

Philadelphia Media Holdings will pay $562 million
for Philadelphia Inquirer and Philadelphia Daily News

SACRAMENTO, Calif. and PHILADELPHIA May 23, 2006 – The McClatchy Company (NYSE: MNI) today announced a definitive agreement to sell Philadelphia Newspapers, Inc. (PNI) to Philadelphia Media Holdings LLC (PMH) in a transaction valued at $562 million. The purchase covers the Philadelphia Inquirer and Philadelphia Daily News, both daily newspapers, and related media assets including philly.com. Philadelphia Media Holdings was formed by a group of local investors headed by advertising executive Brian Tierney for the purpose of acquiring these assets. The two newspapers are currently owned by Knight-Ridder, Inc., which McClatchy has agreed to acquire. The parties intend to close the transaction within roughly the same time frame as the close of McClatchy’s Knight Ridder acquisition, which is expected this summer.

“This agreement represents a classic win-win deal – good for McClatchy, good for the buyers and good for Philadelphia,” said Gary Pruitt, Chief Executive Officer of McClatchy. “We are delighted to receive a full, fair price consistent with our projections, and further gratified about the buyer’s commitment to the community, to good journalism and to the heritage of both these fine newspapers. We couldn’t be more pleased with this result.”

“On behalf of the dedicated local investors who have joined together to purchase the Philadelphia Inquirer, Daily News and philly.com, this is a day of immense pride and heartfelt excitement,” said Tierney. “The next great era of Philadelphia journalism begins today with this announcement. We intend to be long-term owners committed to serving this region with the vigorous, high-quality journalism we all expect of the Philadelphia Inquirer, Daily News and philly.com, and we intend to preserve both papers and their unique and valuable contributions. Our plan is to invest in and grow both papers, not allow them to erode, and we know the employees are eager to join us and get started doing just that.”

Knight Ridder CEO Tony Ridder called the deal “a great outcome” and said, “One of the most important considerations in selling these newspapers was to respect and secure their proud heritage of top journalism and community service. We are gratified to have been able to work with McClatchy and these new owners to see that happen.”