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McClatchy

From Alfawiki
McClatchy Media Company
Company typeSubsidiary
IndustryPublishing
Founded1857; 169 years ago (1857)
FounderRollin Ridge
FateAcquired by Chatham Asset Management in 2020; merged with A360media in 2024
Headquarters
Sacramento, California
,
United States
Area served
United States (14 states)
Key people
Craig Forman (CEO), Kevin McClatchy (Chairman)
ProductsNewspapers, magazines, websites, community publications
OwnerChatham Asset Management
Number of employees
5600 (2015)
ParentChatham Asset Management
Websitewww.mcclatchy.com

McClatchy Media Company, commonly known as McClatchy, is a U.S.-based publishing firm incorporated under Delaware jurisdiction. Initially headquartered in Sacramento, California, it became a subsidiary of Chatham Asset Management, which is based in Chatham Borough, New Jersey, after filing for bankruptcy in 2020.

The company publishes 29 daily newspapers spanning 14 states, with an average weekday readership of 1.6 million and Sunday circulation reaching 2.4 million. In 2006, McClatchy expanded by acquiring Knight Ridder, then ranked as the second-largest newspaper chain in the United States. In 2024, McClatchy completed a merger with A360media.

In addition to its newspaper holdings, McClatchy oversees multiple websites and community publications, including the McClatchy DC Bureau, which specializes in political reporting from Washington, D.C.

History

The origins of the company trace back to The Daily Bee in Sacramento, established in 1857 by Rollin Ridge. James McClatchy joined as editor and built the publication’s reputation for progressive reform. Leadership transitioned to his son, Charles Kenny McClatchy, who grew the enterprise by launching the Fresno Bee in 1922 and acquiring the Modesto Bee in 1924. The company traditionally concentrated on California’s Sacramento and San Joaquin Valleys.

Under Charles K. McClatchy II’s leadership starting in 1978, the company expanded through acquisitions such as the Anchorage Daily News and Tri-City Herald. McClatchy also owned TV station KOVR from 1965 until its sale in 1978.

In 1990, McClatchy extended its presence to South Carolina by purchasing three daily newspapers: The Herald, The Island Packet, and The Beaufort Gazette. The News & Observer of Raleigh was added to its portfolio in 1995.

McClatchy acquired Cowles Media Company’s key asset, the Minneapolis Star Tribune, in a $1.4 billion transaction in 1998 but divested it in 2007 for $555 million to Avista Capital Partners.

In January 2004, McClatchy purchased the Merced Sun-Star along with five affiliated newspapers located in California’s San Joaquin Valley.

The pivotal acquisition of Knight Ridder occurred in June 2006 for approximately $4 billion, bringing 20 newspapers into McClatchy's fold but also incurring $2 billion in debt. Shortly thereafter, McClatchy sold off 12 Knight Ridder papers and did not retain any of Knight Ridder’s digital assets—an omission that later affected its position during the industry's transition to digital media.

McClatchy's digital investments include minority stakes in CareerBuilder (15%), Classified Ventures (25.6%), HomeFinder (33.3%), as well as substantial voting shares in The Seattle Times Company.

In January 2017, Craig Forman—previously affiliated with Yahoo! and EarthLink and serving on McClatchy's board—was named CEO, succeeding Patrick Talamantes. Kevin McClatchy continued as chairman, representing the sixth generation of family leadership.

Confronted with ongoing industry pressures, McClatchy offered voluntary buyouts to roughly 10% of its workforce in early 2019.

On February 13, 2020, the company filed for Chapter 11 bankruptcy protection due to pension liabilities and high debt levels. By August 2020, hedge fund Chatham Asset Management acquired McClatchy for $312 million without implementing layoffs or requiring union concessions.

In July 2023, as part of cost reduction efforts, McClatchy eliminated editorial cartoonist positions at three of its newspapers.

November 2023 saw the sale of McClatchy's Charlotte printing facility to North State Media for $4.65 million; employees were retained by the new owner.

Following its December 2024 merger with A360media, McClatchy announced plans in May 2025 to discontinue several magazines including Closer, First for Women, In Touch, and Life & Style.

Company infrastructure

By 2015, McClatchy had a workforce of around 5,600 employees, including both full-time and part-time personnel. The corporation issues two categories of stock, allowing the founding McClatchy family to maintain controlling interest. For example, during the acquisition of Knight Ridder, the family’s shares were cast in favor of the deal, circumventing the requirement for shareholder approval.

In October 2006, Editor & Publisher noted a slight revenue decline for McClatchy compared to the previous fiscal year. Between the 2006 Knight Ridder acquisition and late 2009, McClatchy's stock (MNI) experienced a steep fall in value. By December 2008, its share price dropped below $1, with market capitalization decreasing by more than 98% since the acquisition. Although some recovery occurred between 2010 and 2011, stock prices remained over 90% lower than their highest point.

In 2016, McClatchy carried out a reverse stock split at a ratio of 1-for-10, which elevated share prices to above $11.

The company’s digital division includes McClatchy Interactive (previously known as Nando Media), which manages its online media properties acquired alongside the purchase of the News & Observer.

McClatchy was involved in a joint ownership group for the Ponderay Newsprint Mill located near Spokane, Washington. This facility, inaugurated in 1989 and shuttered in 2020, was sold in 2021 for $18.1 million to a venture capital firm based in California.

Through acquiring Knight Ridder, McClatchy gained a partnership with Tribune Company in Knight Ridder-Tribune Information Services (now McClatchy-Tribune Information Services, MCT). In 2014, Tribune purchased McClatchy's interest and moved MCT’s headquarters to Chicago.

McClatchy DC Bureau

McClatchyDC delivers original content from McClatchy's Washington, D.C. bureau, inherited from Knight Ridder. It represents the largest customer of McClatchy-Tribune Information Services.

In 2008, bureau chief John Walcott was honored with the I. F. Stone Medal for Journalistic Independence by the Nieman Foundation for Journalism. Walcott emphasized McClatchy’s unique reporting before the Iraq War, focusing on dissenting perspectives rather than official government accounts.

Over its 159-year history, McClatchy reporters have been awarded nine Pulitzer Prizes, most recently in 2017 for their investigation into the Panama Papers. The company was also a finalist in 2015 for its coverage of government efforts to hide Bush-era CIA Enhanced interrogation techniques.

Criticism

On August 4, 2013, McClatchy published details of communications between Ayman al-Zawahiri, leader of Al Qaeda, and Nasser al-Wuhayshi, head of Al Qaeda in the Arabian Peninsula, discussing an impending terrorist attack. This report was released despite The New York Times agreeing to withhold identities at the request of U.S. intelligence agencies concerned about jeopardizing operations. Officials claimed that McClatchy's disclosure caused greater immediate harm to counterterrorism activities than Edward Snowden’s leaks did, resulting in a significant reduction in terrorists’ use of a critical communication channel. Following this, authorities sought alternative ways to monitor Al Qaeda communications.

Dailies

Note: (*)—Denotes newspapers obtained through the 2006 acquisition of Knight Ridder.

Dailies obtained through Knight Ridder acquisition and subsequently divested

Magazines

After completing its 2024 merger with A360media, McClatchy broadened its holdings by acquiring several prominent magazine brands:

These additions strengthen McClatchy's position within the lifestyle and entertainment publishing sectors, aligning with its strategy to diversify its business operations.

See also

  • Seattle Times – McClatchy owns 49.5%, while the Blethen family controls 50.5%

External links

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