Sacramento, Calif.—McClatchy Co., which agreed in March to acquire Knight Ridder for $6.5 billion, last week announced a definitive agreement to sell Philadelphia Newspapers Inc. to Philadelphia Media Holdings in a deal valued at $562 million. The deal covers the Philadelphia Inquirer and Philadelphia Daily News, both daily newspapers, and philly.com. Philadelphia Media Holdings was formed by a group of local investors headed by advertising executive Brian Tierney. The transaction is expected to close this summer, roughly the same time frame as the close of McClatchy's Knight Ridder acquisition. At the time, McClatchy agreed to buy Knight Ridder and its 32 newspapers, it said it would divest 11 of the acquired properties that do not fit its long-term strategy of operating in markets where there is little or no competition.