Gannett Co., Inc.
) completed the buyout of six television stations of London
Broadcasting Company. The acquisition is a step toward expanding
presence in broadcasting and digital products and lowering
dependency on the soft print media business as well as traditional
advertising. This would make the company less susceptible to
The transaction, worth $215 million, will widen 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
Earlier, Gannett had hinted that the deal will benefit earnings
per share within the first 12 months and contribute approximately
$50 million to revenues in 2014.
Phil Hurley, the chief operating officer of London Broadcasting
Company, will continue to spearhead six stations under the
supervision of Dave Lougee, the president of Gannett
Prior to this acquisition, Gannett had acquired
television-station operator, Belo Corp. The takeover firmed its
foothold in the rapidly growing broadcast media business.
Gannett is taking initiatives to diversify its business model by
adding new revenue streams. The company is adapting to the changing
face of the multiplatform media universe with Internet, mobile,
tablet, social media networks and outdoor video advertising in its
portfolio. We believe that the company is well poised to capitalize
on the promising digital media landscape.
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
The stock currently carries a Zacks Rank #4 (Sell), highlighting
the company's waning publishing advertising revenue which fell 4.8%
in the first quarter.
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
NY TIMES A (NYT): Free Stock Analysis Report
GANNETT INC (GCI): Free Stock Analysis Report
EW SCRIPPS CO (SSP): Free Stock Analysis Report
JOURNAL COMM-A (JRN): Free Stock Analysis
To read this article on Zacks.com click here.