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Gannett Announces it Will Spin Off Newspapers
It was announced on Tuesday by the Gannett Company that it will spin off its print operations, according to The New York Times. This includes its major publication USA Today.
The company also said that it will purchase out the 73 percent of the auto sales website Cars.com that it does not own for $1.8 billion.
In a conference call announcing the move chief executive of Gannett, Gracia C. Martore, said the following: “It has been difficult for us to look at certain acquisition opportunities. We now have two companies that are unfettered.”
The company noted that its digital and broadcasting company, which has not been given a name yet, will be the largest independent group of TV stations in the top 25 markets. The company will have a network of 46 stations that it will either own or service. It will be the largest affiliate group for both CBS and NBC.
Last year, Gannett purchased Belo Corporation for $1.5 billion to double the number of TV stations it owns.
“The bold actions we are announcing today are significant next steps in our ongoing initiatives to increase shareholder value by building scale, increasing cash flow, sharpening management focus, and strengthening all of our businesses to compete effectively in today’s increasingly digital landscape,” Martore said in a statement.
The law firms advising on the breakup include Greenhill & Company and the law firm Wachtell, Lipton, Rosen & Katz.Gannett to Spin Off Newspapers by Jim Vassallo