McClatchy May Be Next Old Media Giant to Topple

Karma | 11/19/2019 | Staff
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McClatchy Co., publisher of 29 newspapers including the Miami Herald, may be the next print media giant to topple after seeing advertising revenues switch to the Internet.

Founded in 1857 as The Daily Bee in Sacramento, the company has two classes of stock, enabling the McClatchy family to retain control, for now. McClatchy bought the Knight Ridder chain for $4.5 billion in 2006, an ill-timed purchase as print revenues were already declining.

Sacramento - Company - Bankruptcy - Year - Pension

The Sacramento, California-based company may file for bankruptcy within the next year because of high pension costs and falling revenue, Bloomberg reported, citing media analysts. A company representative declined to comment when reached by Bloomberg.

Either in the case of bankruptcy or restructuring, “the McClatchy family would likely see a reduced position in the company,” writes Ken Doctor, media analyst and author of Newsonomics: Twelve New Trends That Will Shape the News You Get. “A bankruptcy would likely mean the end of its control.”

Investment - Fund - Chatham - Asset - Management

Investment fund Chatham Asset Management LLC, based in Chatham, New Jersey, is the largest holder of McClatchy debt and, according to Bloomberg, its largest shareholder.

“With McClatchy’s troubles — its share price collapsed last week, down 82 percent across five trading days — a new financial player steps to center stage: Chatham Capital,” Doctor said. “However McClatchy gets reorganized — and now it must be, one way or another — Chatham, the...
(Excerpt) Read more at: Karma
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