Gannett Buying Belo's TV Side; ProJo Not Part of the Deal
The Gannett Company is buying the Belo Corporation, the Dallas-based entity that owns 20 television stations, for $1.5 billion. Belo Corporation became a separate company in 2008 from A.H. Belo, the owner of the Providence Journal.
The AP reports:
Under the agreement announced Thursday, Gannett will buy Belo, which is based in Dallas, for $13.75 per share. That represents a 28 percent premium over Belo's closing price on Wednesday.
Gannett, one of the largest newspaper publishers in the U.S., also will assume $715 million in debt.
In premarket trading, Belo Corp.'s shares jumped 28 percent on the news. Gannett Co.'s stock rose 21 percent.
Nine TV stations were the main attraction when Belo bought the Journal Company for $1.5 billion in 1997. The move marked the change from local ownership of Rhode Island's statewide daily. It was followed, thanks to the emergence of the Internet, by an ongoing remaking of the media landscape.