In Boomtown, but Still Stuck on a Bubble - New York Times

"One reason McClatchy has decided not to keep The Mercury News is the paper's high operating costs, the company said. The newspaper's profit margin of about 9 percent is well below the average of about 12 percent for the Knight Ridder papers that McClatchy is keeping. Douglas M. Arthur, an analyst for Morgan Stanley, estimates that the newspaper earns less than $22 million a year on revenue of about $235 million."