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.

Tyson's Corner, Virginia based Gannett Company Inc. is a media holding company and the largest newspaper publisher by daily circulation in the United States.
In addition to its well-known national newspaper, USA Today, the company also owns the Arizona Republic in Phoenix, The Indianapolis Star, The Detroit Free Press and the Des Moines Register to name only a few. In addition to newspapers in print, through Gannett Broadcasting Inc. the company owns or operates 46 television stations, being the largest owner of NBC and CBS affiliates. Gannett also owns significant digital media properties through Gannett Digital, which include PlanetDiscover, PointRoll, ShopLocal,, CareerBuilder, Clipper, Sightline Media Group and BNQT Media Group.

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, 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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Published on Jun 29, 2015
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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