It’s just a deal representative of the press’ current hardships. "Certainly in straight financial terms, based on what's been happening to circulation, ad revenue and earnings, it's a much tougher business than it was eight years ago," said Rick Edmonds, media analyst at the Poynter Institute.

"The substantial loss on the sale is a vivid reminder of the industry's declining fortunes ove the last several years," Goldman Sachs declared.

McClatchy is selling the Star after several years of losses and to obtain a $160 million tax benefit from the sale – after emitting optimistic projections at the beginning of the year. Apparently, Avista deemed the Star to still be a worthwhile investment in the long term.

"They're terrific platforms, they have very broad reach, and we think they're going to be around for a long long time," said a partner at Avista.

Until now, there are no official plans as to job cuts or for a reorganization of the team. "Everything we've heard from McClatchy recently is 'Hey, we're all in this together. We don't do layoffs.' Blah blah blah BS," said Star columnist Doug Grow.

The Star Tribune is still the US’ 15th largest newspaper, with a circulation just above 350,000. The new deal might also hint at a growing trend: struggling newspapers will be bought out not only by media giants, but also by big businesses very remotely linked to the dealings of the press.

Source: AP through West Central Tribune - Editor&Publisher