The McClatchy Company (NYSE:MNI) Moves Up Smartly
The McClatchy Company (NYSE:MNI) which is into newspaper publishing and other allied media businesses through its flag ship titles like “The Sacramento Bee and The Charlotte Observer” has seen its stock move up by a huge 14 percent during trading on 10th March on the back of news that one of the properties “Cars.Com” which it partly owns has been put up for sale by its operating partner Classified Ventures. The sustained rally in the stock resulted in the stock price shooting past its prior 52 week high price point to set a new bench mark of $6.51 which was 8.6 percent above its prior high.
McClatchy Company (NYSE:MNI) Part Of A Successful Consortium
The McClatchy Company (NYSE:MNI) holds a 25 percent stake in a consortium of media firms which include four other major players. These are A.H. Belo (AHC), Tribune (TRBAA), Gannett (GCI) and Graham Holdings (GHC). This investment vehicle operates under the name of Classified Ventures and over the years has seeded and developed properties and business which are growing into mature business now.
Successful Business Model
One such business was Cars.com which has been put on sale now by Classified Ventures. The Wall Street Journal has quoted people in the know to peg the asking price on the Cars.Com business at $3 billion. With a 25 percent stake in the business, this Sacramento based media house is expected to make a killing from any eventual sale of the business and hence the markets are rallying behind its stock. Gannett (GCI) is the other big investor in the business and holds close to 27 percent stake in Classified Ventures.
Expected To Fetch A Premium
The property on sale, Cars.com is an online portal for posting automobile resale classifieds and boasts of close to 11 million active users every month. The money churning business is expected to fetch a premium for its owners in the impending sale.