McClatchy's Value in The Seattle Times Co. Sinks 80%

By: E&P Staff McClatchy's 49.5% stake in The Seattle Times Co. is worth considerably less, according to a quarterly filing.

In the Sacramento, Calif.-based company's $1.3 billion write down last week, it was disclosed that its value of the Seattle Times dropped almost 80% to $19.1 million.

McClatchy acquired the stake in the Seattle Times when it purchased Knight Ridder in 2006. The Blethen family controls 50.5% of the Seattle Times Co. The Hearst Co., publisher of the Seattle Post-Intelligencer, is a partner of the Times in joint operating agreement.

In last June, McClatchy had valued its stake in the Seattle Times at $89.9 million

Industry analyst John Morton told the Seattle Times in a story that he found the size of McClatchy's Times write down surprising.

"I would have expected 50 or 60 percent," he said.