By: E&P Staff If all goes according to plan, Knight Ridder will be no more after Tuesday, when the deal with McClatchy Co. becomes final. Thirty-two KR papers will pass to McClatchy, which in turn has found buyers for 12 of them.
Today, Knight Ridder shareholders, gathering for what will likely be the last time, are scheduled to vote on the company's proposed sale to McClatchy. The meeting will take place at a hotel in Knight Ridder's home city, San Jose, Ca. Approval is widely expected. Eighty percent of the shareholders must okay it, according to Knight Ridder bylaws.
The deal will no doubt close Tuesday. One of the final loose ends was resolved today with the announcement that the last of the 12 "orphans" to be passed along by McClatchy -- the Wilkes-Barre (Pa.) Times Leader -- had found a new owners.
To mark the passage, reporters at the Miami Herald submitted questions to Tony Ridder, the CEO who decided (after being pressured by investors) to sell. He provided written answers, which were published in several Knight Ridder papers on Sunday.
Here are a few highlights.
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Q Do you regard the sale of Knight Ridder as unique to the company or as a sign of shifting times for the media industry? What do you see as the future for newspapers?
A The sale of Knight Ridder definitely reflects shifting times for the media industry. The emergence of the Internet as an increasing source of news and information for consumers, and as an ever more powerful forum for advertisers, presents a big challenge. The changing business models of many of our traditional advertisers -- department stores, the auto industry, telecommunications, employment -- is another. In that kind of environment, you're going to see some changes from what has been the norm.
I am optimistic about our business. There's a strong market and demand for intense local news, and newspapers -- along with the Internet and targeted publications -- are uniquely positioned to provide that news in a depth and a range and a format that no other medium can. But I do think the business model will evolve. For example, you may see more "clustering" of operational functions in the future.
Q What would your father and grandfather say about the sale?
A My father and grandfather and great-grandfather built a tremendous business over generations by recognizing how their communities were growing and how the company could provide products and services to help them grow. I think they would understand how, given the circumstances, selling Knight Ridder was the right thing to do.
Q You've said you did not know McClatchy would sell 12 newspapers, particularly San Jose. How do you feel about those sales and how do they affect your view of McClatchy?
A It's true -- I didn't know before we received McClatchy's bid that it was planning to sell 12 newspapers, although I did know they intended to sell some. I was disappointed that all the Knight Ridder newspapers would not be staying together. I think it's been a difficult situation for the employees of the newspapers McClatchy is selling, and I regret that. But I understand how this fits with McClatchy's longer-term strategy. I think McClatchy is a fine company, and I expect all our newspapers will do well with their new owners.
Q In retrospect, how do you view Knight Ridder's move from Miami to San Jose?
A The move to San Jose was very positive for Knight Ridder -- as we expected it to be. It put us in the heart of the online/interactive world. It made it easier to recruit in that world. It gave the nontechies among us a much better understanding of the transformation occurring all around us.
Q What is your legacy to the company, the industry and the communities your newspapers cover?
A I don't see this as an individual legacy. I've been fortunate to lead this company and to build on the tradition of the great newspaper executives who preceded me: John and James Knight, Lee Hills, Bernard Ridder, Alvah Chapman and Jim Batten. And we've done this with the support and hard work and creativity of thousands of men and women who have made Knight Ridder great over two generations.
Knight Ridder's legacy is outstanding journalism that has made a tremendous difference in all of our local communities and -- through our Washington Bureau -- nationally and internationally. The legacy is our fierce fight for freedom of the press. The legacy is 32 strong newspapers and their Web sites in communities across this. The legacy is a tradition of honesty in dealing with our employees, a strong commitment to diversity in our work force, and excellent service to our customers and our communities. The legacy is cities and towns all across America that are better for our having been there -- better because the United Way is stronger, or a museum is supported, or literacy is disseminated or the consequences of a natural disaster are tempered by help of every description. We can all be very proud of this legacy.
Q What are your plans now?
A I'm going to take time off over the next several months.
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