Gannett adds 6 more Texas TV stations to its portfolio in $215 million deal
The expansion of Gannett’s broadcast holdings continues with the acquisition, announced today, of six television stations in Texas for $215 million in cash. The stations have been acquired from London Broadcasting Company.
The six stations involved in the acquisition are 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.
“The addition of these stations will expand Gannett’s reach into some of the fastest growing markets in the nation and furthers our successful transformation into a diversified multi-media company,” Gracia Martore, president and chief executive officer of Gannett, said.
“With more than 70% of London Broadcasting’s advertising revenues driven by local advertisers, this acquisition will provide us access to attractive new markets in which we believe our local digital marketing services group, G/O Digital, will thrive.”
The newly acquired stations are expected to generate revenue of approximately $50 million in 2014, Gannett said. The deal is expected to close this summer.
While Gannett continues to expand its broadcast holding – it completed its acquisition of Belo’s TV stations, a deal valued at $2.2 billion – the newspaper properties continue to be a source of divestiture rumors. Two weeks ago Gannett announced that it would outsource the printing of its three Michigan papers to Advance Central Services.
Rather than divesting itself of its print properties, Gannett may simply be looking to minimize the financial impact of owning them. But at times like these one misses Jim Hopkins’ Gannettblog.