Gannett Company (GCI) Completes Split Into Two Companies
Shares of Gannett Co. Inc. (GCI) were trading off -2.06 or -5.54 percent to $35.10 per share in Monday's premarket after the company announced they had completed their split into two companies. Gannett Co. shares closed at $37.16 per share, up +0.26 or +0.70 percent in Friday's regular trading session.
Gannett announced it would split into two separate publicly traded companies back in August of 2014. One company, under the new name TEGNA will run all of Gannett's broadcast and digital businesses, while the Gannett publishing side of the business will continue under the original Gannett name and ticker symbol. TEGNA will be traded under the ticker TGNA and is already up +0.89 or +2.96 percent to $31.00 per share in premarket trading.
TEGNA Inc. - an anagram for GANET - will be the largest independent television station group with 46 television stations and affiliates in 25 of the top U.S. markets that reach a total of one third of all television viewers in the United States. TEGNA Digital is made up of Cars.com, CareerBuilder and all the other Gannett digital media properties.
Gracia Martore, President and Chief Executive Officer of the new TEGNA said in a press release that, "Today is the culmination of relentless focus and hard work over the past three and a half years to transform our businesses. We have added significant scale through the strategic buildup of high-performing broadcasting and digital assets which are leaders in their respective industries. With terrific competitive positioning in growing sectors, strong leadership and a more sharply focused strategy, we are ready to hit the ground running and we couldn't be more excited about what the future holds.
Under the terms of the deal, shareholders of Gannett stock will retain their Gannett shares, which will be renamed TEGNA. Shareholders will also receive one share of "new Gannett for every two shares of Gannett stock already owned as of the record date of June 22nd, 2015. New Gannett shares will begin trading "regular way under the old GCI symbol this morning.
TEGNA shares are up while the New Gannett shares were selling off in this morning's premarket. Some analysts expect shares of TEGNA to appreciate as much as 20 percent in the long term. New Gannett shares (GCI) will open at the $15 per share level to adjust for the split.
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