The Gannett Company agreed on Thursday to buy the Belo Corporation for about $1.5 billion in cash, in a deal that almost doubles the media company’s television operations.
Under the terms of the deal, Gannett will pay $13.75 a share in cash, a 28 percent premium to Belo’s closing price on Wednesday. Gannett will also assume $715 million of Belo’s existing debt.
The takeover is a move by Gannett to diversify its media operations, at a time when traditional print media continues to struggle. The company said that the transaction will increase its television portfolio to 43 stations from 23 stations, while its revenue from digital and broadcasting operations will comprise two-thirds of its pro forma earnings before interest, taxes, depreciation and amortization.
“We have been successfully transforming Gannett into a diversified multimedia company with broadcast, digital and publishing components across high-growth markets nationwide, and this is another important step in the process,†Gracia Martore, Gannett’s chief executive, said in a statement.
The deal is expected to close by the end of the year, subject to approval by regulators.
JPMorgan Chase and the law firms Nixon Peabody and Paul Hastings advised Gannett. RBC Capital Markets and the law firm Wachtell, Lipton, Rosen & Katz advised Belo.
