The Justice Department said on Monday that it would require the sale of one television station in St. Louis in order for Gannett‘s acquisition of Belo to proceed.
The agency announced the settlement as it filed a antitrust lawsuit in the United States District Court for the District of Columbia to block the settlement. The station to be sold under the agreement is Belo’s KMOVâ€'TV, a CBS affiliate. Gannett’s KSDKâ€'TV, meanwhile, is the NBC affiliate in St. Louis. The two stations are the top two in that market.
“Gannett’s KSDKâ€'TV and Belo’s KMOVâ€'TV compete head-to-head in the sale of broadcast television spot advertising in the St. Louis area, and this rivalry constrains advertising rates,†William J. Baer, Justice’s antitrust chief, said in a statement. “The full divestiture required by the department will ensure that KMOV-TV will remain a vigorous competitor in St. Louis.â€
Gannett planned to sell six stations, including KMOV-TV to Sander Media, an investment group headed by Jack Sander, who was chief of Belo until 2006. The Justice Department is requiring that Gannett, Belo and Sander Media divest their interests in the St. Louis station to an independent purchaser approved by the government. The settlement must be approved by a federal judge.
Gannett, the publisher of USA Today, announced the acquisition of Belo - one of the biggest deals for local television in decades â€" for about $1.5 billion in June. The deal is intended to accelerate Gannett’s shift away from print.
