By: Press Release | The McClatchy Company
The McClatchy Company said today that it anticipates a cash distribution as a result of the recent announcement by Classified Ventures, LLC (CV) of its agreement to sell Apartments.com for $585 million to CoStar Group. CV has said that it expects the transaction to close in the second quarter of 2014.
McClatchy owns a 25.6% interest in CV. A distribution approximately equal to McClatchy’s portion of the net proceeds on the sale of Apartments.com is expected to total approximately $147 million, and approximately $90 million after-tax.
McClatchy noted that its portion of the gain from the sale of Apartments.com will be recorded in its equity income in unconsolidated companies in the quarter in which the transaction is completed. Taxes on its portion of the gain will also be included in McClatchy’s tax provision in the same quarter of 2014. In fiscal 2013 McClatchy recorded digital advertising revenues of $3.8 million from the sale of Apartments.com advertising products and paid CV $1.1 million in wholesale fees for those products.
Management also indicated that it expects to use the distribution it receives once the transaction is completed for general corporate purposes, including debt reduction.
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