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McClatchy’s ‘Miami Herald’ for Sale, Sources Say

McClatchy is reportedly putting one of its largest newspapers, the Miami Herald, up for sale. The newspaper generates a slim operating margin, according to sources, who say that the most attractive part of a deal could be the paper’s prime waterfront real estate.

The Rocky Mountain News in Denver is also seeking a buyer and is likely to shut down operations if one isn’t found by mid-January.

The need to sell the Herald is a continuation of the fallout from MClatchy’s $4.5 billion purchase of Knight Ridder in 2006, writes the Sarasota Herald Tribune. Because of the deal, the company has about $2 billion in debt.

Newspaper advertising is in steady decline; the situation is most pronounced in Florida and California, where McClatchy has a major presence. McClatchy reported third-quarter income of $4.2 million on $451.6 million in revenue, according to The New York Times.

Tribune Co. is another newspaper company saddled with debt. The company is trying to negotiate new terms with creditors and has hired advisors for a possible bankruptcy filing.