McClatchy announces sale of Philly papers

The McClatchy Company Tuesday announced an 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, and related media assets including philly.com.

Employees at the two papers were informed this afternoon about a 5 p.m. press conference and a 6 p.m. meeting of all staffers, according to the report in Editor and Publisher. .

Philadelphia Media Holdings was formed by a group of local investors headed by advertising executive Brian Tierney -- who has ties to local business -- for the purpose of acquiring these assets. The two newspapers are currently owned by Knight Ridder, Inc., which McClatchy had 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.

"McClatchy will receive $515 million in cash proceeds, and PMH will assume $47 million in pension liabilities. We now have agreements to sell six of the 12 papers to be divested, and we are confident the remaining six will sell for prices that will put total receipts above $2 billion, as we projected."

Deadline for bids on the sale of the Beacon Journal is reportedly May 31.

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