Forbes.com: Media Firms to Boost Stake in Web Sites

August 1, 2006 -- Media companies Gannett Co., McClatchy Co. and Tribune Co. on Tuesday announced an agreement relating to their stakes in their classified help-wanted advertising venture CareerBuilder.com, and two other online businesses, ShopLocal.com and Topix.net.

Gannett and Tribune will each boost their ownership in Chicago-based CareerBuilder and ShopLocal.com to 42.5 percent, and in Topix.net to 31.9 percent.

Sacramento, Calif.-based McClatchy will receive about $310 million and keep a 15-percent stake in CareerBuilder and ShopLocal.com, and an 11.25-percent stake in Topix.net.

The deal values CareerBuilder at $1.55 billion, ShopLocal.com at $85 million and Topix.net at $72 million.

CareerBuilder competes against Yahoo Inc.'s HotJobs and Monster Worldwide Inc.'s Monster.com.

McClatchy acquired its stakes in the Internet properties with its purchase of Knight Ridder in late June. Knight Ridder, Gannett and Tribune had previously been equal partners in CareerBuilder.

"Increasing our ownership position in CareerBuilder, ShopLocal.com and Topix.net is consistent with our Internet growth strategy," said Dennis FitzSimons, Tribune chairman, president and chief executive in a statement.

As part of the deal to boost their stake in CareerBuilder, McLean, Va.-based Gannett and Tribune will each pay McClatchy about $142 million, and they will each pay $13 million for their added interest in ShopLocal.com and Topix.net.

CareerBuilder's six-member board will be composed of two directors chosen by Gannett, two by Tribune, one by McClatchy, and CareerBuilder's CEO, Matt Ferguson.

"Maintaining a strong coalition of newspaper partners is critical to strengthening the newspaper industry in a changing environment. With committed owners and a powerful network of affiliated newspapers serving more than 200 local markets, CareerBuilder will be stronger than ever," said Craig A. Dubow, Gannett's chairman, president and chief executive.