Gannett to buy Dallas-based Belo in $2.2 billion deal

Gannett to buy Dallas-based Belo in $2.2 billion deal

Credit: Justin Sullivan/Getty Images

FILE: Copies of USA Today, owned by Gannett Co, are displayed on a rack.

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by MARJORIE OWENS

WFAA

Posted on June 13, 2013 at 8:38 AM

Updated Thursday, Jun 13 at 9:38 AM

DALLAS - The Gannett Co., owner of various TV and newspaper properties that include USA TODAY, has reached a $2.2 billion deal to acquire Dallas-based Belo Corp.

The companies announced the agreement Thursday morning and are expected to close the deal by the end of 2013.

In a statement released by Gannett, the company said it will buy the broadcast business for $1.5 billion at $13.74 per share and assume $715 million in debt.

The acquisition will make Gannett, based in McLean, Va., one of the country's largest owners of major network affiliates. It nearly doubles Gannett's portfolio from 23 to 43 stations.

Gannett expects the deal to boost its adjusted earnings by 50 cents per share within the first 12 months.

Belo Corp. is the owner of WFAA and 19 other TV stations.

In premarket trading, Belo Corp.'s shares jumped 26 percent. Gannet Co.'s stock rose 12 percent.

The Associated Press contributed to this report

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