Thesis and catalyst: McClatchy's 25.6% ownership stake in Classified Ventures is the perfect example of a hidden asset, valued on its balance sheet at $73.7 million as of FY 2013. This crown jewel is a five-way partnership owned by the following newspaper publishers (Gannett, McClatchy, Tribune, Graham Holdings, and AH Belo). Classified Ventures' assets include two very valuable digital properties: Cars.com and Apartments.com. Here is where it gets interesting. On March 3, 2014, CoStar Group, an online real estate database company, agreed to buy Apartments.com from the five-company partnership of Classified Ventures at a price of $585 million.
This will result in gross proceeds to McClatchy of $147 million, with net after-tax proceeds of $90 million, which should be paid
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