Steven R. Thompson|Dallas Business Journal
Gannett, (NYSE: GCI) the parent company of The Arizona Republic and KPNX-TV Channel 12 in Phoenix, has acquired Belo Corp. in a $2.2 billion deal that includes KTVK-TV Channel 3 in Phoenix.
The McLean, Va.-based media conglomerate would become the fourth largest owner of major network affiliates in the country. Gannett gains 20 broadcast stations, including Dallas’ WFAA Channel 8.
Gannett will acquire the outstanding Belo shares for about $1.5 billion and assume $715 million in existing debt. The deal has been unanimously approved by both companies’ board of directors.
“This is an outstanding and financially compelling transaction for our shareholders,” Dunia A. Shive, Belo’s President and Chief Executive Officer, said in a release. “Together, this portfolio of media assets will be well-positioned to capitalize on substantial growth opportunities in the years ahead.”
Before the deal, Gannett owned 23 broadcast stations, and the company is also the owner of USA Today and various local newspapers.
Belo Corp. is not to be confused with A.H. Belo Corp., which owns the Dallas Morning News and was not a part of the sale.
