Gates foundation helps MediaNews aquire California papers

The Bill & Melinda Gates Foundation was among a group of organizations that loaned at least 385 million dollars to MediaNews Group Inc. for the acquisition of California newspapers.

The foundation, the world's largest philanthropic organization, loaned an unspecified amount to MediaNews, a Denver-based company, Bloomberg News reported on Saturday.

The move was unusual for the foundation whose donations usually go to health and anti-poverty purposes.

MediaNews, which also owns the Denver Post, agreed in April to buy four newspapers, including the San Jose Mercury News and Contra Costa Times, from Sacramento-based McClatchy Co. for 1 billion dollars.

MediaNews also bought the Monterey Herald in Northern California and the St. Paul Pioneer Press in Minnesota.

Hearst Corp., which owns the San Francisco Chronicle, also bought a minority interest in the St. Paul and Monterey papers, said the report.

The Gates Foundation has already donated more than 6 billion dollars for health purposes around the world, including 1.5 billion dollars for the development of vaccines for malaria and other diseases.

In June, financier Warren E. Buffett announced he would donate an estimated 31 billion dollars to the Gates Foundation,bringing its total endowment to more than 60 billion.

Source: Xinhua