Gary Pruitt: The Remodeler's Dilemma

Gary Pruitt's not the kind of guy to have buyer's remorse. And why should he? Astoundingly, the market responded to his risk-taking purchase of Knight Ridder by bidding up the McClatchy share price. That's a vote of confidence in Pruitt, believing he can wring more value out of the beleaguered Knight Ridder assets than could Tony Ridder.

Still, the size of the, uh, opportunity sitting before McClatchy CEO Pruitt is an outsized one. It's as if he put a classified ad in his flagship Sacramento Bee:

No monster house builders welcome. Owner of cozy 2/1 cottage, solid foundation, well-maintained seeks contractor for major add-on. Goal: 5/4, with all modern amenities (Internet capable throughout), energy-efficient, all work to be done in 180 days.

Think of it. Pruitt needs to remodel the McClatchy house while going to work every day, not missing a beat with his ongoing business. Easier said than done.

Remember the last big newspaper buy, when Tribune bought the Times Mirror in 2000. That deal was heralded as one that would propel Tribune into the front ranks of newspapering and achieve great synergies.  Tribune got big indeed, but less nimble, and has spent years massaging the integration of its assets. Its various attempts to bring L.A. Times management into the fold, to wring out redundant costs and to make more efficient use of company assets have been well-documented. It's been tough, underwhelming in its impacts, and most importantly, has taken way too much time.

Time is the key.

It's not as if Gary Pruitt's new house is in a prosperous, unhurried part of town. It's in a transitional neighborhood, with new neighbors moving in and out rapidly, as the Internet produces would-be partners and competitors daily. Some rogues in fact drive by and are taking potshots through the windows.  What seemed like popguns several years ago may seem like bazookas within the next couple of years.

The house itself has seemed solid enough. But those pipes of revenue have developed odd blockages here and there, and the circulation pipeline no longer responds to a good shot of sales pressure Drano.

Then there's the question of which rooms to rent, or maybe condo-ize, as evidenced by remodeler Pruitt's immediate announcement that 12 of the newly purchased papers -- including all the unionized ones, btw -- will go back on the block.

First matter of business for the remodel: finding the right subs. How solid is Pruitt's crew, and who will he take on from Knight Ridder and Knight Ridder Digital as he drives the new business from Sacramento? That'll be the first task ahead as he formally closes the deal.