US media giant Gannett announced plans today to split into two separate firms, one for broadcast and digital, and the other for newspapers including its national daily USA Today.
"The bold actions we are announcing today are significant next steps in our ongoing initiatives to increase shareholder value by building scale, increasing cash flow, sharpening management focus and strengthening all of our businesses to compete effectively in today's increasingly digital landscape," said Gannett president and chief executive Gracia Martore.
Gannett becomes the latest media conglomerate to spin off struggling print news operations from faster-growth operations such as television.
It comes on the heels of similar moves by Rupert Murdoch's media-entertainment empire that split into 21st Century Fox and News Corp., and a spin-off by Tribune Co. Of its newspaper assets. Time Warner spun off its magazine division as Time Inc. In June.
"As a standalone businesses each company will have even sharper management focus and resources more directly aligned with their individual needs and priorities," Gannett's Martore said in a conference call.
Gannett also has said it signed a deal to acquire the 73 per cent it does not own of Cars.Com, a major player in the online auto business. The other owners of the website include newspaper groups Belo Corp., McClatchy Co., Tribune Co. And Graham Holdings, which is the former owner of the Washington Post.
Gannett will create a new publicly traded broadcasting and digital company, which has yet to be named, and which will remain headquartered in McLean, Virginia. Martore will serve as chief executive.
