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December 22, 2005

Knight-Ridder: Receiving Bids But Sale Process Slow

Reuters posted an update on the Knight Ridder (KRI) bidding process. The deal is described as "slow moving," with multiple bidders and a timeline that extends to February. Price talk is the mid $60s to low $70s. The article is well informed, in my opinion.

A deal at that level provides some downside support for newspaper stocks by establishing a private market value near 10 times EBITDA. The valuation would be below prior deal levels in the newspaper industry but moderately above current trading levels for most newspaper stocks.

Posted by Steve Birenberg at December 22, 2005 09:52 AM in KRI