McClatchy Back in NYSE's Good Graces

Last Updated Sep 4, 2009 6:28 PM EDT

The McClatchy Company is back in compliance with New York Stock Exchange (NYSE) standards for continuing listing of its stock price.

Since being notified by the NYSE in February that it no longer qualified for listing, the nation's third-largest newspaper company has been restructuring and repositioning itself as "a 24-7 news and advertising company that can deliver in print, online, and to handheld devices," in the words of CEO Gary Pruitt.
Under new, more relaxed standards approved this week by the SEC, a company like McClatchy can now continue to qualify for listing as long as its stock price maintained an average closing price above $1.00 per share for any consecutive, 30-trading-day period.

During the crisis that has been shattering the U.S., newspaper industry, I've been increasingly impressed with management decisions at McClatchy. Rather than sit back like a deer in the headlights, Pruitt and team have turned what was formerly a newspaper chain and started transforming it into a player in digital media.

Investments in CareerBuilder, Cars.com, and Apartments.com have been instrumental in the diversification of revenue and are boosting the bottom line. Investors seem buoyed, as well, which is why with the company's stock has quickly risen from $0.40 in early July to close at $1.81 on Friday.

During such a long media recession, it is difficult for anyone to find the crystal ball that reveals which companies are going to pull through and rebound to financial health going forward, but to me, it's increasingly hard to bet against McClatchy.

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  • David Weir

    David Weir is a veteran journalist who has worked at Rolling Stone, California, Mother Jones, Business 2.0, SunDance, the Stanford Social Innovation Review, MyWire, 7x7, and the Center for Investigative Reporting, which he cofounded in 1977. He’s also been a content executive at KQED, Wired Digital, Salon.com, and Excite@Home. David has published hundreds of articles and three books,including "Raising Hell: How the Center for Investigative Reporting Gets Its Story," and has been teaching journalism for more than 20 years at U.C. Berkeley, San Francisco State University, and Stanford.