P-I, Seattle Times settle JOA litigation

Seattle will remain a two newspaper town. The litigation between the Hearst Corp., the publisher of the Seattle P-I, and The Seattle Times Co. has been settled, the companies announced Monday morning.

All outstanding litigation has been settled, and the Hearst Corp. will end its 32 percent contingent interest in the joint-operating agreement for the two newspapers. That 32 percent interest is what Hearst would get if the P-I folded and the JOA continued.

Hearst will pay the Seattle Times $25 million in exchange for the newspaper to agree not to issue any loss notice until at least 2016, according to a Hearst press release.

As part of the settlement, The Seattle Times Co. will give Hearst $49 million to resolve all current claims and to buy back the 32 percent contingent interest, said Paul Luthringer, a Hearst spokesman.

The deal also calls for a Seattle Times Co. executive to work on P-I circulation and subscription issues, he said. The P-I, he added, will receive "equal treatment" with production, especially with quality and color capacity.

Newspaper delivery trucks will be repainted with both of the newspaper names or "equal co-branding", and Hearst reserves the right to take future disagreements to arbitration.

"This is a good deal for the P-I. It's a good deal for all newspaper readers of Seattle. It's good for our employees. I'm glad it's worked out this way," said Roger Oglesby, the P-I publisher.

"We're happy to have found common ground, and we think this is a very positive development," said Jill Mackie, The Seattle Times Co. vice president of public affairs.