McClatchy to keep its newly acquired stake in Times Co.

The McClatchy Co. plans to hold on to its newly acquired minority interest in The Seattle Times, a McClatchy vice president said Tuesday.

"We plan to be a partner," Howard Weaver, McClatchy's vice president for news, said in a brief telephone interview. "We plan to participate."

As part of its purchase of the much larger Knight Ridder newspaper chain Monday, Sacramento, Calif.-based McClatchy acquired 49.5 percent of the voting shares in The Seattle Times Co.

The family-controlled Blethen Corp. owns the other 50.5 percent.

Some industry observers had speculated McClatchy might be inclined to sell its interest in The Times — perhaps to the Blethens, for whom 100 percent control of the newspaper the family founded is a longtime dream. But Weaver said McClatchy has no plans to do so.

The Blethens' relations with Knight Ridder have been rancorous. Knight Ridder officials have repeatedly expressed frustration that their 49.5 percent stake gives them almost no voice in Times management, and have charged that The Times doesn't make enough money.

The Blethen-McClatchy relationship appears to be starting off more amicably.

"We have a lot of respect for the Blethens," Weaver said. "We look forward to working with them."

A Times spokeswoman declined to comment.

But Times Publisher Frank Blethen expressed admiration for McClatchy Chief Executive Gary Pruitt in a 2001 article in the industry journal Editor & Publisher.

"The worst thing I can say about Gary is he's not more outspoken on industry issues," Blethen said. "Gary's a guy we need to hear from more often. He's a wonderful mix. He has business understanding, but is also principled on diversity and journalism values and community issues."

Weaver wouldn't say whether McClatchy shares Knight Ridder's concern about The Times' returns.

Knight Ridder's recently published annual report indicates that, while its dividends from The Times increased in 2005, they still totaled less than $3.7 million.

Weaver also wouldn't discuss whether McClatchy might try to buy out the Blethens, who have said repeatedly their shares aren't for sale.

The Hearst Corp., which publishes the Seattle Post-Intelligencer in a joint-operating agreement with The Times, has a right of first refusal should the Blethens ever change their minds.

In Washington, McClatchy already publishes The (Tacoma) News Tribune and Tri-City Herald. In a conference call after Monday's acquisition announcement, Pruitt said he didn't think ownership of the News Tribune and the stake in The Times would pose antitrust problems.

After the Knight Ridder purchase is final, McClatchy also will own The Olympian and The Bellingham Herald. Weaver said he and other top McClatchy executives plan to visit both newspapers soon as part of a tour of the company's new properties.

The Times Co.'s Washington papers include the Yakima Herald-Republic and Walla Walla Union-Bulletin.

Eric Pryne: 206-464-2231 or epryne@seattletimes.com