MediaNews is acquiring four fomer Knight Ridder papers, including the San Jose Mercury News and the St. Paul Pioneer Press. It's a complex deal involving trades with Hearst (I don't think the castle is part of the deal).

MediaNews will purchase the Mercury News and Contra Costa Times, and Hearst will acquire the Monterey County Herald and the St. Paul Pioneer Press. Under a separate agreement between Hearst and MediaNews, Hearst has agreed to trade the St. Paul Pioneer Press and Monterey Herald to MediaNews in return for an equity investment in MediaNews' non-San Francisco Bay Area assets.

The deal creates a powerful new media giant in Northern California by combining ownership of MediaNews' eight local daily newspapers with Knight Ridder's Mercury News, Contra Costa Times and Monterey County Herald. MediaNews also is acquiring Knight Ridder's smaller Bay Area publications, such as the Palo Alto Daily News group and the Silicon Valley Community Newspapers.

"While McClatchy may be buying Knight Ridder, we're getting the flagship and the crown jewel of Knight Ridder,'' MediaNews Chief Executive Dean Singleton told the Mercury News staff Wednesday. Singleton was joined by Knight Ridder CEO Tony Ridder. "I know how much Tony loves this newspaper. We will continue to make him proud as we go forward.''

>Singleton of Mercury News: 'We're getting the crown jewel' [San Jose Mercury News]