Thursday, October 25, 2007

Hearst, MediaNews do another deal

While they may be competitors in the Bay Area, Hearst and MediaNews have announced they're expanding a joint venture they have in Connecticut to include two more newspapers that Hearst has purchased and MediaNews will operate. But an independently owned paper in Norwalk, Conn., called The Hour, has convinced Connecticut Attorney General Richard Blumenthal to launch an investigation into the deal to see if it violates antitrust laws. Hearst announced it is buying The Advocate, in Stamford, and Greenwich Time, for $62.4 million. The sale comes five months after Tribune was forced to scrap a planned sale to Gannett because of union issues, Long Island's Newsday reports. On Friday, Hearst purchased a 31 percent interest in MediaNews Group's assets outside the Bay Area in a deal valued at $317 million. The two companies have told California and fedeal antitrust regulators that they will continue to compete in the Bay Area.

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