Gannett Co. Inc (GCI), the owner of USA Today, announced today that it plans to spin off its newspaper publishing unit into an independent publicly traded company, as it enhances focus on its Broadcasting and Digital business, amid challenges in the print and publishing industry. Both companies, which will be headquartered in McLean, Virginia, will retain the Gannett name, according to the media house.
This decision comes in the wake of stalling print subscriptions in the US, as preference turns increasingly toward the digital medium. Gannett said in a press release today that the move was made to provide both companies the “opportunity to grow organically across all business as well as pursue strategic acquisition”.
Gannett expects the publishing business to be debt-free after separation, with all debt remaining with the broadcasting and digital company, which would own around 46 TV stations and several online properties. The company expects to pay out an initial combined cash dividend of $0.20 per share every quarter, once the two companies are separated.
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2 comments:
This will probably be the END of the DT. Their parent Gannett has propped up their operating losses for years. Now that their lifeline has been severed, they will probably fall by the wayside along with their other local print affiliates.
I agree with 12:32 Posting. The Daily Times is not a profitable operation. There expenses outpace their circulation and this paper will surely be singled out as one for the chopping block.
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