San Francisco businessman Clint Reilly (left) wants a federal judge to issue an emergency order blocking the sale of the Mercury News, Contra Costa Times and other Knight Ridder assets to MediaNews, the Sacramento Bee is reporting. Lawyer Joseph Alioto, representing Clint Reilly, said he’s been told that the U.S. Justice Department is on the verge of approving the deal. As a result, he’s seeking a temporary restraining order that would prevent the closing of the deal. A hearing is set for Thursday in U.S. District Court in San Francisco. Reilly sued MediaNews July 14, saying the deal would give MediaNews, already the owner of eight dailies in the Bay Area, control over every major Bay Area daily except the Chronicle. However, the Chronicle’s parent, Hearst Corp., is helping to finance the $1 billion transaction. If Reilly stops the transaction, the former KR papers will remain in the hands of McClatchy Co., which bought KR’s assets but decided to sell certain underperforming papers such as the Merc. [Business Journals: Reilly seeks TRO; lawyer says “It’s a monopolization of ideas.”]

SF Press Club News

3 Comments

  1. They were slow to cover Reilly’s lawsuit, too. So much for that wall between the business office and editorial.

  2. I didn’t see this story in the Chronicle this morning? I wonder if this is something they’re not going to cover.

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