Boston, MA 03/11/2014 (wallstreetpr) – The McClatchy Company (NYSE:MNI) has had its shares trending up with large margins since last week. The shares were up more than 14 percent to $6.51 in the last session. It was a day that the shares escalated to a new 12-month high at $7.39. So then, what is exciting the stock and can things continue in this positive trend for the long haul? The answer has been found.
The company can be seen putting some of its digital assets up for sale and this monetization move is bearing great benefit for the company. While the management was initially adamant on cashing in on its online classified ad investments, the deal now looks sweeter than ever.
Sale of Apartments.com
The McClatchy Company (NYSE:MNI) last week sealed a deal that would end up putting net $90 million to its pockets after agreeing to sell its stake in Apartments.com. The monetization of this Internet classified-ad platform brings in significant value from a business that was not very core to McClatchy Company (NYSE:MNI). The transaction is expected to close in the second quarter.
More Internet classified platforms sale
After the Appartments.com transaction that has left both McClatchy Company (NYSE:MNI) management and investors excited, the company has earmarked another advertising platform for sale. In the latest move, the company and its investment partner have put to sale Cars.com in a deal that could be worth $3 billion in total and more than $750 million for McClatchy Company (NYSE:MNI).
McClatchy Company (NYSE:MNI) also has stake in other Internet classified platforms Dealsaver.com, Homefinder.com and Careerbuilder.com. The sale of Appartments.com and the planned sale of Cars.com seem to suggest that as monetization of Internet classified-ads become lucrative, it would not be a big surprise if the company decides to monetize its remaining positions in the market.
Bottom line
McClatchy Company (NYSE:MNI) and its peers in the publishing industry are betting big on Internet classified advertising platforms as transition to digital publishing continues to gain currency. Such moves to monetize classified ad sites will obviously continue lifting the stock.
