McClatchy Retains Ownership in CareerBuilder
The McClatchy Company (NYSE: MNI) today reported that it has resolved outstanding issues related to its affiliate agreement with CareerBuilder and will continue in its 14.4% ownership stake in the nation's largest online job site.
McClatchy acquired a 33% stake in CareerBuilder in the acquisition of Knight-Ridder, Inc. (KRI) in June 2006, and in August 2006 sold 18.3% of the interest it acquired to Gannett and Tribune (the other two-thirds owners at the time). At that time McClatchy entered into an affiliate agreement with CareerBuilder that limited the number of products McClatchy's newspapers could sell compared to the former KRI affiliate agreement and the Gannett and Tribune affiliate agreements.
Earlier this year McClatchy began talks with Gannett and Tribune to renegotiate the affiliate agreement to be more equitable for its newspapers. Those talks have been successfully completed. Details of the affiliate agreement were not disclosed.
Gary Pruitt, chairman and chief executive officer of McClatchy, said, "It was our clear preference to remain with CareerBuilder, and we are pleased to continue our affiliation with them and to continue with our ownership of the nation's largest online job site. We believe the new affiliate agreement is more equitable for our newspapers and we look forward to a successful relationship with CareerBuilder."
The McClatchy Company is the third largest newspaper company in the United States, with 31 daily newspapers, approximately 50 non-dailies and direct marketing and direct mail operations. McClatchy also operates leading local websites in each of its markets that complement its newspapers and extends its audience reach in each market. Together with its newspapers and direct marketing products, these operations make McClatchy the leading local media company in each of its premium high growth markets. McClatchy-owned newspapers include The Miami Herald, The Sacramento Bee, the (Fort Worth) Star-Telegram, The Kansas City Star, The Charlotte Observer, and The (Raleigh) News & Observer.
McClatchy also has a portfolio of premium digital assets. Its leading local websites offer users information, comprehensive news, advertising, e-commerce and other services. The company owns and operates McClatchy Interactive, an interactive operation that provides websites with content, publishing tools and software development. McClatchy operates Real Cities (http://www.RealCities.com), the largest national advertising network of local news websites and owns 14.4% of CareerBuilder, the nation's largest online job site. McClatchy also owns 25.6% of Classified Ventures, a newspaper industry partnership that offers classified websites such as the nation's number two online auto website, cars.com, and the number one rental site, apartments.com. McClatchy is listed on the New York Stock Exchange under the symbol MNI.
Statements in this press release regarding future financial and operating results, including revenues, operating expenses, cash flows and debt levels, as well as future opportunities for the company and any other statements about management's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," estimates and similar expressions) should also be considered to be forward-looking statements. There are a number of important risks and uncertainties that could cause actual results or events to differ materially from those indicated by such forward- looking statements, including: McClatchy may not consummate contemplated transactions which may enable debt reduction on anticipated terms or at all; McClatchy may not achieve its expense reduction targets or may do harm to its operations in attempting to achieve such targets; McClatchy's operations have been, and will likely continue to be, adversely affected by competition, including competition from internet publishing and advertising platforms; McClatchy's expense and income levels could be adversely affected by changes in the cost of newsprint and McClatchy's operations could be negatively affected by any deterioration in its labor relations, as well as the other risks detailed from time to time in the Company's publicly filed documents, including the Company's Annual Report on Form 10-K for the year ended December 31, 2006, filed with the U.S. Securities and Exchange Commission. McClatchy disclaims any intention and assumes no obligation to update the forward- looking information contained in this release.