10 Questions for Gary Pruitt
McClatchy CEO Gary Pruitt has his head and hands full buying and sellng papers, as he figures out what it means to be the country's second-biggest newspaper company. A few questions for him as he moves forward (and 10 additional very web-specific ones added):
- Was it coincidence that 8 of the 12 KR properties you immediately put on the sales block were Newspaper Guild operations, making your chances of
achieving significant cost savings more difficult?
- Were you surprised that Tony Ridder was surprised that you were going to re-sell 12 of his papers, including his hometown Merc?
- Is the sale of the Mercury News and Contra Costa Times to Dean Singleton’s Media News all-but-a-done-deal, as many suspect?
- If you succeed in taking K’s stake in the T(ribune) K(nightrider) G(annett) investments in Career Builder and Classified Ventures, will you push to get some of McClatchy’s local market penetration tricks of the trades adopted?
- Will you push TMG (TGM?) for new collective investments, for instance, in buying an ad matching company, like Quigo or Context Web, so that the news industry’s reliance on Google and Yahoo for paid search/contextual revenue can be reduced?
- Will you make McClatchy more of a player overall in the ventures game, looking for
technologies, lead gen companies and other complements to the online businesses?
- Can you figure out a more strategic way to purpose TKG’s 75% stake in Topix to advantage local search and traffic re-circulation on local newspaper sites?
- Can you convince a skeptical Wall Street, which is punishing your purchase daily, that you’ll be getting better-than-expected prices for the Dirty Dozen, defraying the cost of the deal?
9 . Will you give the Yucaipa/Guild bid a wide open shot?
- How likely are PCM, Harris and Southeastern to stick with the deal if the McClatchy share price keeps dropping, reducing the “collar-less” purchase price below 62 or 63?





Sitting inside one of the orphaned 12, it's questions 3 and 9 that are of particular interest to me.
If McClatchy has any back door deal with Singleton that disadvantages the other bidders, I would hope the shareholders would be up in arms, and that cosmic justice would find Bruce Sherman at the front of the crowd.
Yucaipa's deep pockets and reported patience with its investments seem to make it the best candidate to preserve the quality of journalism in the affected communities. Even setting aside questions of monopoly ownership that arise with Singleton's ownership of the north California papers, his debt service to do the deal would probably spell more cutbacks at the properties than would Yucaipa's ownership.
Posted by:Jack Fischer | March 27, 2006 at 09:23 AM