TNG-CWA Calls for Scrutiny of Proposed MediaNews-Hearst Buyout of Former Knight Ridder Newspapers

For More Information: Jeff Miller or Candice Johnson, CWA Communications, 202-434-1168 jmiller@cwa-union.org and cjohnson@cwa-union.org

Washington, D.C. -- The announcement yesterday regarding the sale of four former Knight Ridder newspapers by McClatchy Co. warrants close scrutiny by regulators, shareholders and communities where these newspapers serve the public, said TNG-CWA President Linda Foley.

"The apparent complexity of the proposed MediaNews-Hearst purchase of three Northern California newspapers shouldn't obscure a simple fact: the newspaper industry is dominated by a small circle of ownership groups. Yesterday's news drew that circle even smaller," she said.

TNG-CWA is calling on the U.S. Department of Justice as well as Attorneys General in the affected states to assess the antitrust implications of yesterday's announcement.

Attorney Todd Miller, with the firm Baker and Miller, pointed out that the MediaNews newspaper operation in York, Pennsylvania recently has come under scrutiny for possible anti-trust violations.  

Arguments about advances of digital media into traditional newspaper markets, while relevant, do not constitute an excuse, particularly in northern California, for permitting a single company to serve as the gatekeeper of public opinion for millions of readers, Foley said.

"We believe that a common interest exists among McClatchy shareholders, employees and the communities served by the 12 Knight Ridder newspapers being sold by McClatchy Co. TNG-CWA continues to believe that the bid by The Yucaipa Companies for all 12 newspapers is likely to deliver the best value and we call on McClatchy Co. to provide evidence that shareholder, employee and community interests are being best served by yesterday's announcement," Foley said.

Henry J. Holcomb, president of TNG-CWA's Knight Ridder Council, said "it is possible that strong unions, working with the readers and advertisers, can make this deal work for the communities these newspapers serve. Still it is troubling that business enterprises that have a financial interest in limiting competition are working with self-imposed secrecy to craft a complex deal that appears to be designed to evade official scrutiny. Businesses that have a sacred public trust to protect the American way of life are showing too little concern for their credibility with the public, and the public should demand more respect."