Belo's KMOV-TV in St. Louis to be Divested Pursuant to Consent Decree with DOJ
Gannett Co., Inc. (NYSE: GCI) and Belo Corp. (NYSE: BLC) announced today that they have reached an agreement with the U.S. Department of Justice ("DOJ") that should enable the companies to complete the previously announced acquisition of Belo in 2013. The Belo transaction remains subject to approval by the Federal Communications Commission and other customary closing conditions.
Gannett, Belo and Sander Media LLC, a third party operator who will acquire certain broadcast stations in markets where Gannett and Belo overlap, entered into a proposed consent decree with the DOJ, pursuant to which Gannett and Sander will divest substantially all of the assets used in the operation of KMOV-TV in St. Louis, Missouri, which is currently owned by Belo. The divesture is expected to occur in 2014.
The synergies associated with KMOV-TV were nominal given the structure of the Belo transaction, and Gannett expects very minimal impact on its previously disclosed projected annual run-rate synergies of $175 million within three years of closing of the Belo transaction. Gannett's strong broadcast presence in the St. Louis market with KSDK-TV, which it currently owns, will not be impacted by the divestiture of KMOV-TV.