Gannet to Expand its Broadcasting Footprint - Analyst Blog


With a view to lower its dependency on soft print media business as well as traditional advertising and to make itself less susceptible to economic conditions, Gannett Co., Inc. ( GCI ) is making endeavors to expand its presence in broadcasting and digital products. The recent deal to acquire 6 television stations of London Broadcasting Company underscores the company's step toward the same.

The transaction worth $215 million will deepen the company's presence in the Texas market and add television stations - KCEN (NBC) in Waco-Temple-Bryan, KYTX (CBS) in Tyler-Longview, KIII (ABC) in Corpus Christi, KBMT (ABC) and its digital sub-channel KJAC (NBC) in Beaumont-Port Arthur, KXVA (FOX) in Abilene-Sweetwater and KIDY (FOX) in San Angelo - to its portfolio.

The deal, which is expected to conclude this summer, will benefit Gannet's earnings per share within the first 12 months and is projected to contribute revenue of approximately $50 million in 2014.

Phil Hurley, the chief operating officer of London Broadcasting Company, will continue to spearhead 6 stations under the supervision of Dave Lougee, the president of Gannett Broadcasting.

Prior to this acquisition, Gannett acquired television-station operator, Belo Corp., that solidifies its foothold in the rapidly growing broadcast media business by almost doubling its the then portfolio of stations.

Gannett is taking initiatives to diversify its business model by adding new revenue streams. The company, which is adapting to the changing face of the multiplatform media universe, currently includes Internet, mobile, tablet, social media networks and outdoor video advertising in its portfolio.

Gannett initiated a subscription-based model, commenced Digital Marketing Services in top markets, and refurbished its iconic brand USA TODAY to generate new advertising and marketing revenue sources. Other publishing companies such as Journal Communications, Inc. ( JRN ), The E.W. Scripps Co. ( SSP ) and The New York Times Co. ( NYT ) are also trying to adapt to different revenue generating avenues.

We believe Gannett remains well poised to capitalize on the promising digital media landscape. The stock currently sports a Zacks Rank #3 (Hold).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

GANNETT INC (GCI): Free Stock Analysis Report

JOURNAL COMM-A (JRN): Free Stock Analysis Report

NY TIMES A (NYT): Free Stock Analysis Report

EW SCRIPPS CO (SSP): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: CBS , ABC , FOX , GCI , JRN

More from

Related Videos



Most Active by Volume

  • $18.16 ▲ 1.57%
  • $31.24 ▼ 14.50%
  • $15.21 ▲ 3.61%
  • $26 ▼ 0.65%
  • $96.99 ▲ 1.78%
  • $35.76 ▲ 1.16%
  • $19.87 ▲ 0.61%
  • $46.29 ▲ 2.10%
As of 7/29/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by