TVSpy has obtained a 10 point FAQ Gannett sent out to its employees talking about the company’s announced purchase of Belo Corp.
The memo covers everything from why Gannett is buying Belo to expected changes at selected stations,
As part of the deal, we are restructuring ownership of the Belo stations in 5 markets, Phoenix, St. Louis, Portland, Louisville and Tucson. We expect that the stations affected will be serviced by Gannett through shared service agreements or similar sharing arrangements.Advertisement
The stations mentioned above are Belo’s KTVK in Phoenix, KMOV in St. Louis, KGW in Portland, OR, WHAS in Louisville, KY, and KMSB-KTTU in Tucson, AZ. Gannett owns KPNX in Phoenix and KSDK in St. Louis, but doesn’t own stations in Portland, OR, Louisville, KY, or Tucson, AZ.
You can read the entire memo after the jump.
Gannett Employee FAQ
Why is Gannett buying Belo?
1. We have been successfully transforming Gannett into a diversified multi-media company with broadcast, digital and publishing components across high-growth markets nationwide, and this is another important step in the process. Belo’s strong and complementary portfolio is a terrific strategic fit. Like Gannett, Belo has a rich history in the news business dating back more than a hundred years. Belo also shares our purpose and passion for delivering the news and information that matter most to the communities we serve. After the close of the combination, Gannett will strengthen our position as the number one local media company in America. Until the deal closes, however, it’s business as usual.
2. How does this combination advance Gannett’s competitive position?
This combination creates the 4th largest owner of major network affiliates – a true Broadcast “Super Group,” nearly doubling our broadcast assets (including stations to be serviced by Gannett through sharing arrangements) and expanding our national footprint into new, high growth markets. It also increases our network diversity, as together with Belo, we will become the #1 CBS affiliate group and the #4 ABC affiliate group, as well as strengthen our position as the leading NBC affiliate. Additionally, the combination allows Gannett’s successful Digital Marketing Services to expand to new, growing markets with millions of small businesses.
3. What does this mean for our Publishing and Digital divisions?
This combination is about much more than Broadcast. It significantly expands the reach of Gannett overall. We will have a presence in 111 communities across the country, including in more than two-thirds of the top 25 markets. This expanded footprint will give us an even greater opportunity to leverage our hometown advantage and strong brand leadership across all of our businesses – Publishing, Broadcast and Digital.
4. How long will the integration take?
We expect to close this deal by the end of the year. Importantly, until that time, nothing changes with Belo and Gannett remaining two separate companies. The Board and management know Belo’s business very well and believe that the integration process should be smooth and straightforward. Following the close, we will begin the integration, and we’ll provide you with further information as the integration progresses.
5. Will their entire operation fold into the broadcast division operation?
Gannett will be providing support services to stations in the Louisville, Phoenix, Portland, St. Louis and Tucson DMAs and these stations will be separately owned. In all of the remaining DMAs, the Belo stations will be fully integrated into the broadcast division’s operations, which will be led by Dave Lougee.
6. How does this announcement impact my day-to-day job?
Until the deal closes, we will continue to operate as separate companies and it is business as usual for Gannett employees.
7. As a Gannett employee, does this provide an opportunity for me?
We believe this combination opens up a number of new doors and will provide increased opportunities across the new organization. This combination increases our network diversity and significantly expands Gannett’s geographic footprint and reach, allowing us to extend our strong brands into new, high-growth markets.
8. Are there any overlaps between our broadcast assets and Belo’s? Will Gannett have to sell any stations?
As part of the deal, we are restructuring ownership of the Belo stations in 5 markets, Phoenix, St. Louis, Portland, Louisville and Tucson. We expect that the stations affected will be serviced by Gannett through shared service agreements or similar sharing arrangements.
9. When will we learn more details about the integration of Belo’s operations with ours?
The Board and management are squarely focused on bringing the deal to a close as quickly as possible. After that, we will begin the integration, and we will be sharing additional information with you about that process and how it will unfold following the close.
10. What should I do if someone outside the Company contacts me about the combination?
If you are contacted by the media or other outside parties regarding the combination of Gannett and Belo, please direct any inquiries to ######## at ###-###-#### or #####@#######.