Gannett Co. Inc., the nation's largest newspaper chain, said yesterday that it was weighing a bid for some of the 12 newspapers the McClatchy Co. wants to sell after its planned acquisition of Knight Ridder Inc. this summer.
Gannett chief executive officer Craig Dubow said he was taking "a hard look" at the newspapers, but would not name any he particularly wanted during questioning by investors after a presentation to the Media and Entertainment Analysts Society of New York, according to a Gannett spokeswoman.
Besides The Inquirer and the Philadelphia Daily News, the newspapers for sale are the Contra Costa Times, Monterey County Herald, and San Jose Mercury News in California; the News-Sentinel in Fort Wayne, Ind.; the Duluth News Tribune and St. Paul Pioneer Press in Minnesota; the Grand Forks Herald in North Dakota; the Akron Beacon Journal in Ohio; the Times Leader in Wilkes-Barre; and the American News in Aberdeen, S.D.
People who work for Gannett have said the company might be interested in some midsize Knight Ridder newspapers, such as in Akron and Fort Wayne. Gannett owns five newspapers in Indiana and 12 in Ohio.
McClatchy has told bidders to make their offers by Tuesday.
McClatchy plans to keep Knight Ridder newspapers in Miami; Charlotte, N.C.; Fort Worth, Texas; Kansas City, Mo.; and 16 smaller markets.
After Knight Ridder offered itself for sale in November, Dubow said Gannett would take a "hard look" at the company, the same words he used at yesterday's investors' conference. Asked why Gannett had not made an offer on the whole chain, chairman Doug McCorkindale said the company was concerned about possible regulatory complications for Gannett's television stations, several of which are in markets served by Gannett or Knight Ridder newspapers.
The Federal Communications Commission licenses television stations, and FCC rules - much criticized by media owners - limit "cross-ownership" of television stations and newspapers in local markets.
Gannett is the nation's largest newspaper publisher. It owns USA Today and 90 local dailies, including the Courier-Post in Cherry Hill, the Wilmington News Journal, and the Daily Journal in Vineland, N.J., along with related Web sites and specialized publications.
Gannett joins another chain, MediaNews Group of Denver, in confirming interest in at least some of the newspapers McClatchy does not want. MediaNews officials have expressed interest in acquiring Knight Ridder's California dailies and merging production and distribution with newspapers it already operates in the Oakland area, but has not said whether it will bid for Philadelphia and other Knight Ridder newspapers.
Gannett is a partner with MediaNews in newspaper investments or operating agreements in south-central Pennsylvania and parts of California, Michigan, New Mexico and Texas. Gannett spokeswoman Tara McConnell said the company would not comment on whether it planned to join MediaNews in joint bids for some of the Knight Ridder newspapers.
Other bidders for the newspapers include Yucaipa Cos. of Los Angeles, a private-equity firm, which says it is bidding for all 12 newspapers and is favored by the Newspaper Guild labor union; and local media companies and investment groups in several of the Knight Ridder markets.
Also at yesterday's investors' conference, Dubow said Gannett would likely report first-quarter earnings at the low end of Wall Street estimates.
Gannett shares closed up 35 cents at $59.40 on the New York Stock Exchange.
Contact staff writer Joseph N. DiStefano at 215-854-5957 or jdistefano@phillynews.com.
