Knight Ridder buys Bay area local papers–what’s next?

Knight Ridder’s had the smarts to buy 4 local Bay area/Peninsula daily newspapers this week. The four papers have a combined daily circulation of more than 55,000 and about 120 employees.
Seems to me this is a great opportunity for Knight-Ridder to have a new testbed for print/digital media integration, especially around classifieds, community and “citizen journalism.”
After all the margins are lower, the papers have super-unique content, and distinct identities–and they’ll report up to Hilary Schneider, a supremely web-savvy exec.
Alan Mutter has an interesting point about the sale: “
The deal is significant, however, because it means that the Hearst-owned Chronicle now is completely cornered.”
What’s next?
If they continue to be smart, a significant opportunity.