Rockin' in the Bee World
From August 2006
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Birth of a Media Behemoth
By Mark LarsonGary Pruitt, the boyish-faced CEO of the McClatchy Co., is suddenly sitting atop the country’s second-largest newspaper chain, trailing only Gannett Co. Inc. in size. Pruitt, who recently turned 49, rode herd on the company’s swapfest of Knight Ridder papers that resulted in keeping the 20 strongest papers and selling the weakest 12.
Off an upstairs back corridor of The Sacramento Bee at 21st and Q streets, Pruitt’s office reflects his efficient style. It is neatly themed in shades of gray and blue, which he prefers over the maple paneling installed by his predecessor, Erwin Potts. Sitting at a long meeting table, he reflects on the deal that leaves the company with no small bill: about $3 billion in debt.
What Pressure?
“I think we’ll be able to pay down debt quickly,” says Pruitt. “For the early years, we’ll balance debt repayment with share repurchases. We’ll have plenty of use for cash.”
Part of the deal’s cost is a short-term hit of hundreds of millions of dollars in taxes. But it’s worth it, says Pruitt, because in return, the company, as it did with the buy a few years ago of the Minneapolis Star Tribune, becomes a much larger cash machine.
Continued...
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