McClatchy announced on Tuesday that it has sold its 15% stake in ShopLocal.com, a local shopping Web site, to Gannett for $7.875 million. McClatchy said it would apply the proceeds to pay down debt. As recently as March, McClatchy's stake in ShopLocal was valued at $11.13 million.
This sale makes sense if McClatchy decided ShopLocal would not be a profit center. But if the sale was a desperation move in response to McClatchy's crushing debt, that is a very bad sign.
UPDATE: 12:05 Jeff Taylor says McClatchy has started selling off parts.
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