Reuters posted an update on the Knight Ridder (KRI) bidding process. The deal is described as “slow moving,” with multiple bidders and a timeline that extends to February. Price talk is the mid $60s to low $70s. The article is well informed, in my opinion.
A deal at that level provides some downside support for newspaper stocks by establishing a private market value near 10 times EBITDA. The valuation would be below prior deal levels in the newspaper industry but moderately above current trading levels for most newspaper stocks.