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Gannett acquires 6 TV stations for $215 million

Rochester Business Journal
May 14, 2014

Gannett Co. Inc. announced Wednesday it will purchase six Texas television stations for $215 million in a deal that includes CBS, NBC and ABC affiliates.

"The addition of these stations will expand Gannett's reach into some of the fastest-growing markets in the nation and furthers our successful transformation into a diversified multimedia company,” said Gracia Martore, president and CEO.

The parent of the Rochester Democrat & Chronicle Media Group and USA Today will pay London Broadcasting Co. in cash for the deal, which is anticipated to close this summer.

Gannett will own 46 broadcast TV stations when the deal is complete. Phil Hurley, London Broadcasting’s chief operating officer, will continue to lead the six stations through the deal’s close.

The largest newspaper chain in the U.S., Gannett in the last year has been diversifying by buying broadcast TV stations. Gannett acquired Belo Corp TV stations for $1.5 billion in 2013.

Company officials expect the purchase to bring in roughly $50 million for the media company this year as well as be accretive to earnings per share within the first 12 months.

The company operates 82 newspapers, but approximately 75 percent of its operating income is represented by broadcast TV stations. Revenues from the company’s TV segment totaled $204 million during the company’s first quarter.

“With more than 70 percent of London Broadcasting's advertising revenues driven by local advertisers, this acquisition will provide us access to attractive new markets in which we believe our local digital marketing services group, G/O Digital, will thrive," Martore said in a statement.

(c) 2014 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail service@rbj.net.


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