MCLEAN, Va. (AP) — Gannett is spinning off its publishing business from its broadcasting and digital operations. The company is also acquiring full ownership of Cars.com for $US1.8 billion.
It follows the Tribune Co., Time Warner Inc. and News Corp. in breaking off print media from its rapidly expanding broadcast operations.
Gannett Co. said Tuesday that the publishing business will basically be debt free once spun off, with the broadcasting and digital businesses holding the existing debt.
The publishing business will keep the Gannett name, while the broadcasting and digital company has yet to be named. Both companies will remain headquartered in McLean, Virginia.Gannett is buying the 73 per cent interest in Classified Ventures LLC, owner of Cars.com that it doesn’t already own. The deal is expected to close in the fourth quarter.
Shares of Gannett Co., Inc. were up 6.35% in pre-market trading Tuesday morning.
“These transformative transactions will give both the Publishing company and the Broadcasting and Digital company enhanced strategic, operating, financial, and regulatory flexibility to pursue growth and consolidation opportunities in their respective markets, while delivering strong cash flow to build further upon Gannett’s long-standing traditions of award-winning journalism and service to our local communities,” president and CEO Gracia Martore said in a statement.
“We are creating two companies that will be among the largest and strongest in their peer groups, with increased abilities to focus resources on the most promising areas of their businesses.”
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