Private Equity Firm Acquires Star Tribune
Star Tribune, Minnesota’s leading publication that was owned by the McClatchy Co., is now under the private group Avista Capital, a New York-based firm comprised of former investment bankers. The newspaper was sold at $530 million.
The sale, which was disclosed last 2007, landed Avista Capital Partners its first entry in the newspaper industry. The firm, which has assets in various health care and media businesses, was one of the many firms expressed interest to purchase the Philadelphia Daily News and Philadelphia Inquirer.
An Avista executive stated that the firm showed interest in the Star Tribune because of its Twin Cities top market share. The publication, which has been managed by several owners for almost 140 years, had 40% of the advertising market of the Twin Cities in the third quarter.
A member of Avista’s executive advisory board, Chris Harte, said that the Star Tribune is one of the top newspapers in the United States. He now functions as Star Tribune’s chairman of the Board of Directors. Other members of the Board are Star Tribune publisher Keith Moyer and Avista associates OhSang Kwon and James Finkelstein.
As for any particular plans for the publication, Avista had not revealed one since meetings still need to be arranged.
