May 14 Gannett Co said on Wednesday it
will buy six television stations in Texas for $215 million,
another move by the company to bulk up its local TV station
The company will pay London Broadcasting Co all cash for the
deal, expected to close this summer pending regulatory approval.
Gannett is the largest newspaper chain in the U.S. but in
the past 12 months, it has aggressively been snapping up
broadcast TV stations in an effort to diversify its revenue.
Last year, Gannett acquired Belo Corp TV stations for $1.5
billion, nearly doubling its TV stations.
With this deal, which includes CBS, NBC and ABC affiliates
in markets including Waco and Corpus Christi, Gannett will own
or operate 46 stations.
The company publishes 82 newspapers, including USA Today,
but its TV stations are more profitable. Broadcast TV
represented 75 percent of Gannett's operating income of about
$204 million during the first quarter.
Gannett said the new stations are expected to generate
approximately $50 million in revenue this year and will be
accretive to earnings per share within the first 12 months.
(Reporting by Jennifer Saba in New York; Editing by Bernadette