Gannett today announced its plan to split into two separate companies, one for its broadcasting and digital endeavors and another for its publishing ventures. It will also acquire full ownership, a remaining 73%, of Classified Ventures LLC, which owns Cars.com.
Gracia Martore, Gannett president and CEO, said in a news release, “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. 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.”
Gannett is the largest newspaper publisher in the US, and owns the USA Today and 81 local daily newspapers. It also owns or operates 46 television stations.
From the release:
“Following the separation, the Publishing company, which will retain the Gannett name, is expected to be listed for trading on the NYSE and will remain headquartered in McLean, Virginia. Robert J. Dickey, currently president of Gannett’s U.S. Community Publishing division, will become Chief Executive Officer of the Publishing company upon completion of the separation.”
“Following the separation, Gannett’s Broadcasting and Digital company, which has yet to be named, will remain headquartered in McLean, Virginia, and will trade on the NYSE. Gracia Martore will serve as Chief Executive Officer of the Broadcasting and Digital company at that time.”
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