tag:blogger.com,1999:blog-13073631.post4852548220389714573..comments2024-01-04T07:21:18.243-05:00Comments on John In Carolina: You Gave to the Raleigh N&OUnknownnoreply@blogger.comBlogger4125tag:blogger.com,1999:blog-13073631.post-71214825841967114502007-08-23T22:14:00.000-04:002007-08-23T22:14:00.000-04:00To Anon @ 5:48,Thank you for pointing out the N&O ...To Anon @ 5:48,<BR/><BR/>Thank you for pointing out the N&O did report the Trib's sale and the tax break.<BR/><BR/>As I understand it, the tax break comes in as a result of large short-term capital gains McClatchy reaped when it sold some of the K-R chain papers it bought.<BR/><BR/>The loss on the Trib sale offset the gain on the K-R sales.<BR/><BR/>The Trib sale had to be done in the '06 tax year to take advantage of the K-R gains which occurred in ty '06.<BR/><BR/>Anon @ 9:59,<BR/><BR/>It is complex and don't bet the ranch on what I say, but I think my post above gives you part of the answer.<BR/><BR/>The other part of it, as I'm told by people who know the newspaper business and tax laws, is that if McClatchy sold this tax year, '07, or later they wouldn't have had the K-R short-term profit sale gains mentioned about to use to recoup some of the loss on the Trib.<BR/><BR/>See also Jack at 9:13's comment.<BR/><BR/>Jack @ 9:13,<BR/><BR/>Nice work. You're saying in a few words what I'm saying I've been told.<BR/><BR/>Thank you all three. <BR/><BR/>JohnJWMhttps://www.blogger.com/profile/08275423713054782480noreply@blogger.comtag:blogger.com,1999:blog-13073631.post-64509355131250858662007-08-23T21:13:00.000-04:002007-08-23T21:13:00.000-04:00Perhaps McClatchy felt the the fire sale price, pl...Perhaps McClatchy felt the the fire sale price, plus tax benefits, were better than the future operating losses on an asset that may be declining in value.Jackhttps://www.blogger.com/profile/16530476676444348404noreply@blogger.comtag:blogger.com,1999:blog-13073631.post-33771455349694039112007-08-23T09:58:00.000-04:002007-08-23T09:58:00.000-04:00Still looks like they lost at least $370 million p...Still looks like they lost at least $370 million plus here.<BR/><BR/>I'm lost on the benefit of that transaction.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13073631.post-48464674869799766402007-08-22T17:48:00.000-04:002007-08-22T17:48:00.000-04:00Actually, a search of the N&O's online archives sh...Actually, a search of the N&O's online archives shows a story that does mention the tax break:<BR/><BR/>December 28, 2006<BR/>MINNEAPOLIS -- Big-city newspapers, once held in high regard on Wall Street for their dependable earnings and advertising clout, have never looked so cheap.<BR/><BR/>On Tuesday, The McClatchy Co. agreed to unload the Star Tribune for $530 million -- less than half the $1.2 billion it paid for the newspaper eight years ago. A tax break of $160 million resulting from the sale makes the deal worth $690 million to McClatchy. <BR/><BR/>And I believe the tax break actually is a result of the company selling the paper for less than the purchase price -- just like if you sell stock at a price lower than you bought it. There's a benefit come tax time.Anonymousnoreply@blogger.com