Denver-based MediaNews is increasing its stronghold of the San Francisco Bay Area newspaper market, adding another paper to its catalog. MediaNews already owns papers like The Oakland Tribune and the Marin Independent Journal. The four papers are among the 12 Knight Ridder newspapers that McClatchy has put up on the auction block which will help pay for it’s $4.5 billion in cash and stock Knight Ridder purchase in March.

Part of MediaNews’ strategy to purchase a number of papers in one geographic area of “geographic clusters”, allowing it to cut costs and allow for group advertising sales.

While one newspaper deal is complete, another may be in the works. Daily News L.P, the owner of The New York Daily News, is considering bidding for The Inquirer and Philadelphia Daily News, part of the 12 papers McClatchy is selling. The Daily News is New York's second-largest daily, although its circulation numbers are falling.

The New York Daily News is among at least five parties that have expressed interest in the Philadelphia newspapers.

Once the deal closes, MediaNews would become the fourth-largest newspaper company in the country in terms of circulation, with about 2.7 million daily circulation and 53 daily newspapers.

Source: Philly.com [New York Daily News] and Yahoo [MediaNews]