Gannett sets date for division of its operations
McLean-based Gannett Co. Inc. announced Monday that it will separate its publishing and television broadcasting operations into two publicly traded companies on June 29.
Under the terms of the deal, Gannett shareholders will retain their shares of the current Gannett company (which will become a broadcasting corporation named Tegna). They will receive one share of new stock (for the spun-off publishing company, which will retain the Gannett name) for every two shares of stock they own on the record date of June 22. New Gannett shares will begin trading on June 29.
Gracia Martore, the current president and CEO of Gannett, will serve as president and CEO of Tegna when the separation is complete.
“In just three weeks, we will create two industry leaders that will benefit greatly from enhanced strategic, operating, financial and regulatory flexibility as independent companies,” she said in a statement. “We believe strongly that this transaction will enhance performance, unlock shareholder value and give investors access to more targeted investment opportunities with trading valuations that better reflect the distinctive characteristics and growth profiles of both companies.”
Robert Dickey, currently president, Gannett U.S. Community Publishing, will become president and CEO of the new Gannett company following the separation.
Tegna will trade on the New York Stock Exchange under the ticker symbol TGNA and the new Gannett company will trade under the symbol GCI.
Gannett also announced Monday that Henry McGee will serve on Tegna’s board of directors. He currently is a senior lecturer at Harvard Business School and previously was president of HBO Home Entertainment.
Also, Larry Kramer will retire as president and publisher of USA Today and become a director of the new Gannett company following the close of the transaction.
In addition, the company said that Debra Sandler and Chloe Sladden will serve on Gannett’s board of directors. Most recently, Sandler served as chief health and wellbeing officer and president of Mars Chocolate, North America, at McLean-based Mars Inc.
Sladden is a digital media executive who was vice president, media, from 2012 to 2014, and director, media partnerships, from 2009 to 2012 at Twitter. Currently, she is co-founder of #angels, an early-stage investment group.