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Institutional Shareholders Force Knight Ridder Sale

Online Stock Market Trading By Freddie Mooche

(AXcess News) Reno, In the wake of Knight Ridder's looming break up and The Tribune laying off hundreds of news room staff, AXcess News is expanding to become the first online news network in the country. In September, newspaper publishers began reporting their circulation and revenue figures that show a 2.5 percent decline over the last six months in circulation. A trend that has made headlines with the news of Knight Ridder ( KRI) facing a potential break up.

Stock Investing Course (AXcess News) New York - Unhappy over the value of one of the nation's largest newspaper publishers, institutional shareholders have been pressuring the board of Knight Ridder, Inc. (NYSE: KRI) to break up the publishing company and sell off parts or all of the business. Now, Knight Ridder is considering its sale options.

The seventh annual general meeting of the shareholders of Discovery Holdings Limited (the company) was held in the Auditorium, Ground Floor, 155 West Street, Sandton, on Thursday,

Stock Market Game Knight Ridder had created the net's first online news network through the formation of Real Cities, a network of its newspaper web sites. It was the first nation-wide Internet news network ever to be formed and at the time it was considered a technological leap from print to electronic publishing. But the news organization stagnated in its promotion and development shortly afterward, focusing instead, on its news print business which has steadily lost ground and lowered the market value of Knight Ridder's shares.

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Stock Investing Game Unhappy over the lax results several institutional shareholders have voiced their desire to see the news business broken up, believing its parts were worth more than the whole. The shareholders, representing 35 percent of Knight Ridders stock forced the board to retain Goldman Sachs to consider its options. Now it appears that a sale of the business is eminent as revenues continue to drop.

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Journal Prime Rate Street Wall Newspaper circulation nationwide has been on the decline. In the last six months newspaper circulation has dropped 2.6 percent and advertising revenues have also declined as more ad dollars shift to the Internet. Due to Knight Ridder's third consecutive quarter of declining revenue, the institutional shareholders have pushed CEO Tony Ridder for action. The end result could be a breakup of newspapers with sales to smaller publishers unless another large newspaper publisher made a bid for the assets, which is less likely to happen.

Prior to joining Reunion.com, Dipik served as Vice President of Business Development and Product for Engage.com, where he helped raise a $5 million Series A financing round and grew the customer database from 0 to its first 200, 000 members. Before Engage.com, Dipik was Sr. Director of Marketing for Knight Ridder Digital, where he was responsible for building a local database advertising product in nine local markets. His role grew to include all online marketing and product functions for 31 local newspaper websites.

Stock Market News While bidders mull the various newspaper markets, some have stronger market controls, including their Internet news sites.

Stock Investing Basics A private equity group could also bid to buyout Knight Ridder and slowly sell off its individual newspaper assets for a premium. Murdach's News Corporation (NYSE: NWS)may also be examining that angle, though it has been moving into Internet acquisitions in an aggressive manner having spent $1.2 billion in the last three months on web acquisitions and may consider a move into print to not be as lucrative.

Stock Investing Software Private Capital Management LP, Knight Ridder'slargest shareholder with a 19 percent stake, said it was considering putting up its own slate of directors for the company after it received an unsatisfactory response to its quiry of the board's plan of action.

Stock Market Trading Harris Associates LP, the third-largest shareholder, said it was supporting Private Capital Management's plan. Harris controls 8.2 percent of Knight Ridder's voting stock.

Stock Investing For Dummy The second largest institutional shareholder, Southeastern Asset Management Inc., which controls 9.8 percent of Knight Ridder stock, is also backing Private Capital Management's approach.

Stock Market Crash With the three largest institutional shareholders now in accord, the break of Knight Ridder seems likely.

Stock Investing Tip In the media industry, there have been 275 mergers and acquisitions worth $81.2 billion announced in the U.S. this year, down from 276 deals worth $88.2 billion in the same period in 2004, according to data compiled by Bloomberg. The largest transaction to date was the sale of CBS MarketWatch to Dow Jones & Co. (NYSE: DJ) for a record $519 million, though the premium was due to its pure-web play. In the case of Knight Ridder, it blew it when it was unsuccessful in developing its Real Cities network approach.

Stock Market Chart While Real Cities had attracted Scripps Howard as a partner, with 25 newspaper websites joining the Knight Ridder news network of city news websites, there was no cooperation in marketing the network approach to online advertising which caused Scripps Howard to back out of the deal. The newspapers each focused on print ads in their local markets with Internet sales treated as second-tier sources and very little cooperation in marketing regional and national ad clients for Real Cities.

Online Stock Investing Outside of Knight Ridder's Real Cities only one other national news network exists online. Privately held AXcess News, with 92 cities in its network. While AXcess News goes through a lengthy process of reconstruction of its city sites it has been unable to meet advertising demand. Though its approach is to "brand" its news network and sell advertisers on its Web syndicate strengths. Something Knight Ridder's Real Cities has been unable to do.

Stock Market Crash Of "Knight Ridder has had the luxury of built-in news content for its Real Cities, while online publishers like AXcess News have to license those content feeds from numerous sources in order to 'localize' content in a regional and local web network approach," said Eric Stevenson, AXcess News editor. "They never used their media inventory effectively to make their Real Cities Internet approach work. Each newspaper website focused on local ads and other than that they relied on major online ad networks to fill in the rest rather taking advantage of the dozens of news websites as a whole in selling advertising. I think that was their gravest mistake."

Stock Investing For Beginner Shares of Knight Ridder were up $1.19, or 1.9 percent, at $63.69 at 1:56pm EST Monday.

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