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Gannett moves forward with spin-off digital company that includes CareerBuilder

June 09, 2015

Gannett Co. Inc. (NYSE: GCI), a majority owner of jobs site CareerBuilder, today announced its board of directors approved the completion of a transaction to separate its digital and broadcasting business from its newspaper business. The transaction will create two publicly traded companies: a broadcasting and digital company named TEGNA and a new Gannett, which will retain the name Gannett Co. Inc. and include its publishing properties and affiliated digital assets.

The proposed split was announced in August and is expected to occur this month.

TEGNA will include CareerBuilder and Cars.com, as well as the broadcasting business of 46 television stations.

Gracia Martore, president and CEO of Gannett, will serve as president and CEO of TEGNA upon completion of the separation.

“In just three weeks, we will create two industry leaders that will benefit greatly from enhanced strategic, operating, financial and regulatory flexibility as independent companies,” Martore said. “We believe strongly that this transaction will enhance performance, unlock shareholder value and give investors access to more targeted investment opportunities with trading valuations that better reflect the distinctive characteristics and growth profiles of both companies.”

Martore added, “Like new Gannett, TEGNA will benefit from impressive scale and new opportunities following the separation. TEGNA will be one of the largest and most geographically diverse broadcasters in the US – reaching approximately one third of all television households nationwide, and will house leading digital businesses CareerBuilder and Cars.com. These tremendous advantages, coupled with the enhanced focus and flexibility afforded to TEGNA, are expected to drive strong margins, long-term, sustainable growth and value creation.”

Current Gannett Board Chairman Marjorie Magner will serve as chairman of TEGNA’s board. Henry McGee, Howard Elias, Lidia Fonseca, Jill Greenthal, Gracia Martore, Scott McCune, Susan Ness, Bruce Nolop and Neal Shapiro also will serve as TEGNA directors.

TEGNA will trade on the New York Stock Exchange under the ticker symbol TGNA and new Gannett will trade under the symbol GCI.