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.
) 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
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
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
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.
The E.W. Scripps Co.
The New York Times Co.
) are also trying to adapt to different revenue generating
We believe Gannett remains well poised to capitalize on the
promising digital media landscape. The stock currently sports a
Zacks Rank #3 (Hold).
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