Knight Ridder Considers Sale Of Company

Nov. 14 (KGO) -- The parent company of the San Jose Mercury News and the Contra Costa Times today said it's considering a possible sale of the company. Knight Ridder is headquartered in San Jose and is the owner of 32 newspapers.

Newspapers nationwide are suffering a decline in circulation, including 18 out of the top 20. That means they can't charge as much for advertising. That means profits are slipping, too. Because of that, two large institutional investors have been pressuring Knight Ridder to sell off its papers, which include the Mercury News and the Contra Costa Times.

It's the latest sign that the newspaper business is a potential dinosaur with a cloudy future. One major issue: young people don't read newspapers.

Studies show that less than a third of all people under age 30 read newspapers. The Internet has become a favored source for news. The Internet is, in fact, one of Knight Ridder's fastest growing operations.

Steve Apfelberg's wife has a gripe about newspapers.

Steve Apfelberg, Los Altos resident: "She's like, they fold out, why do they make them in that shape? They get newsprint on you. They're messy."

To make up for sagging circulation and sagging profits, several newspapers have already initiated layoffs, including The New York Times, The Baltimore Sun, and two of Knight Ridder's Philadelphia newspapers.

Fifty-three people just accepted buyouts at the Mercury News in the face of layoffs. The newspaper guild representing them believes you can serve both readers and investors.

Luther Jackson, newspaper guild officer: "I think it's a false dichotomy to say -- great service to the community or return to investors. I truly believe you can have both.

Knight Ridder declined a request for an interview.

Stanford Communications professor William Woo is the former editor of The St. Louis Post Dispatch. He says some investors misunderstand the mission of newspapers beyond making profits.

William Woo, Stanford communications professor: "It has a public purpose as well, and that public purpose is in jeopardy."

The big question is who would buy Knight Ridder's newspapers, given the challenges all newspapers are facing.

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