• by Ray Schultz , August 5, 2024

Newspaper company McClatchy is merging with a360media, a magazine firm, creating a giant that will reach 100 million unique readers per year.  

The firms, both of which are owned by hedge fund Chatham Asset Management, are profitable, but the merger could triple overall revenue and profits, says Tony Hunter, chairman and CEO of McClatchy, who will hold the same titles at the new entity. 

“At the highest level, this creates value that, separately, both of us cannot do,” Hunter says. “If we don’t come together, the value of the individual companies is limited in the near-term.”  

The boards of the two companies have approved the merger.  

A360media’s tabloids -- the National Enquirer, Star, National Examiner and Globe -- will not be included.

Former Enquirer editor David Pecker will not be associated with the new organization, according to McClatchey’s Sacramento Bee. 

A360media produces 10 magazines, including Us Weekly, In Touch Weekly, Woman’s World and Life & Style.

McClatchy operates 30 newsrooms, including those of the Miami Herald, the Kansas City Star, the Sacramento Bee, the Charlotte Observer, the (Raleigh) News & Observer, the Fort Worth Star-Telegram and the Idaho Statesman.

The new firm will probably have three divisions, one focused on news content, a second centered on lifestyle and celebrity content, and the third on distribution.