Well, here’s one way to deal with crashing financial performance in your newspaper properties–get rid of them. News that Belo (BLC) plans to spin its $750 newspaper business out into a separate company has Belo shareholders celebrating. If Belo wants the celebration to continue, it might want to make sure it sells the whole newspaper business, not just part of it.
DALLAS — Television station owner Belo Corp. plans to spin off its newspaper business which includes The Dallas Morning News into a separate publicly traded company. Belo shares rose nearly 5 per cent in premarket trading after Monday’s announcement.
The new company would be called A.H. Belo Corp., the name the company bore from 1865 until 2001. Belo’s current chief executive, Robert Decherd, will become CEO of the newspaper company.
In addition to the Dallas newspaper, the new company will own and operate newspapers including The Providence Journal and The Press-Enterprise of Riverside, Calif. It will also own and manage the Web sites associated with the properties, along with certain niche products and direct mail and commercial printing businesses, according to a company statement.
The operations to be spun off currently have annual revenues of about $750 million and approximately 3,800 workers.