Estimated read time: 2-3 minutes
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
CHICAGO (AFX) - Tribune Co. said Monday it is selling WATL-TV in Atlanta to Gannett Co. for $180 million, part of the media company's strategy to boost its stock price.
Tribune, whose holdings include the Los Angeles Times and Chicago Tribune newspapers and 26 television stations, said last Tuesday it would use debt to buy back up to 75 million shares of stock, sell at least $500 million in noncore assets, and reduce operating expenses by $200 million over the next two years.
"This reflects an important aspect of the stock repurchase strategy that we communicated last week," said Dennis FitzSimons, Tribune chairman and chief executive officer. "The sale of WATL further demonstrates our commitment to delivering value for shareholders."
Gannett said it will continue to own and operate WXIA-TV, its NBC affiliate in Atlanta. The WATL-TV purchase will mark its third television duopoly -- two stations in the same market. It also owns a pair of television stations in the Jacksonville, Fla., and Denver markets.
Tribune said the transaction will close after it receives regulatory approval.
The company has declined to be specific about other assets it might sell but said it doesn't intend to sell the Tribune Tower that houses its headquarters, the Chicago Cubs baseball team or any other assets in its three major markets of Los Angeles, New York and Chicago.
Besides more of its remaining TV stations, other asset sales could include its stock holdings in private and public companies or its 31 percent stake in the Food Network cable TV operation.
WATL-TV, Channel 36, is an affiliate of The WB Network. It will join Fox Television's MyNetworkTV when it launches Sept. 5.
Tribune shares fell 5 cents to close at $29.89 on the New York Stock Exchange, while Gannett shares fell 65 cents, or 1.2 percent, to finish at $53.66. Copyright 2006 Associated Press. All rights reserved. This material may not be
Copyright 2006 AFX News Limited. All Rights Reserved.
