Gannett
Co., the diversified media company that owns USA TODAY and TV stations, said
Thursday it will buy competitor Belo Corp. for $2.2 billion in a deal that will
make Gannett the fourth largest owner of major network affiliates in the U.S.,
reaching nearly a third of U.S. households.
Gannett
will acquire all outstanding shares of Belo for $13.75 per share in cash, or
about $1.5 billion, and assume $715 million in existing debt.
The
transaction, which has been unanimously approved by the boards of directors of
both companies, represents a 28.1% premium to the closing price of Belo common
stock on Wednesday.
