McClatchy deal done

Dean Singleton's MediaNews Group gets the San Jose Mercury News and Contra Costa Times. In a complicated arrangement, Hearst buys the Monterey Herald (and the St. Paul Pioneer Press), and "contributes" them to MediaNews in return for an equity investment in the non-Bay Area assets of MediaNews. McClatchy gets $1 billion in cash. "We are delighted to acquire these fine newspapers and expand our reach in California as well as enter a new and growing market in St. Paul," says Singleton. "These were the newspapers that excited us the most about Knight Ridder." Ron Burkle's Yucaipa Cos. won't be getting into the newspaper business after all. AP via Romenesko, McClatchy release, Mercury News