Monday, October 1, 2007

UPDATED: Belo to create separate television and newspaper businesses

By Pegasus News wire

Updated 07:40 p.m., October 1, 2007

DALLAS — UPDATE: First the market loved the move. Then it righted itself. Smart analysis here.

Sometimes, despite the pain, amputation is the only way to go.

Belo Corp. (NYSE: BLC) announced today that following a comprehensive review of the Company's businesses, structure and value creation strategies, its Board of Directors has unanimously approved a plan to create separate television and newspaper businesses by spinning off the newspaper business into a publicly-traded company called A. H. Belo Corporation ("A. H. Belo"). The spin-off will be accomplished through a tax-free distribution of A. H. Belo shares to Belo Corp. shareholders, and is expected to occur in the first quarter of 2008 subject to customary regulatory approvals. Both the new A. H. Belo and Belo Corp. ("Belo") will be headquartered in Dallas, Texas and the Series A common shares of both companies are expected to be listed on the New York Stock Exchange.

The New A. H. Belo Corporation

A. H. Belo Corporation will own and operate the Company's flagship newspaper, The Dallas Morning News, winner of eight Pulitzer Prizes since 1986 and the 9th largest daily and 12th largest Sunday newspaper in the nation based on circulation; The Providence Journal, the oldest continuously published daily newspaper in the U.S.; and The Press-Enterprise, serving Southern California's Inland Empire region, one of the fastest-growing areas in the U.S. A. H. Belo will also own and manage the various Web sites associated with these properties, as well as certain niche products and direct mail and commercial printing businesses. A. H. Belo's combined newspaper and related online businesses reach a total audience of 3.7 million people in markets with attractive long-term demographics. These businesses currently have annual revenues of approximately $750 million and about 3,800 employees. Robert W. Decherd, currently chairman and Chief Executive Officer of Belo Corp., will become chairman, president and Chief Executive Officer of A. H. Belo, and non-executive chairman of Belo Corp. A. H. Belo will be debt-free upon completion of the spin-off.

Belo Corp.

At the effective date of the spin-off, Belo Corp., with approximately 3,200 employees and revenues of more than $750 million, will be the largest pure-play publicly-traded television station company in the nation. Belo will own and operate 20 television stations (including ABC, CBS, NBC, FOX, CW and MyNetwork TV affiliates) reaching 14 percent of U.S. television households, and their associated Web sites, in 15 highly-attractive markets across the U.S. Nearly all Belo stations rank first or second in their local market based on audience reach. Belo operates 9 stations in 7 of the top 25 markets in the nation, with 6 stations located in the fast-growing, top-15 markets of Dallas/Fort Worth, Houston, Seattle/Tacoma and Phoenix. Belo stations consistently deliver distinguished journalism for which they have received significant industry recognition including six Alfred I. duPont-Columbia University Silver Baton Awards; five George Foster Peabody Awards; and 19 national Edward R. Murrow Awards all since 2000, more than any other commercial station group in the nation.

Belo will also own two 24-hour regional cable news channels: Northwest Cable News (NWCN) and Texas Cable News (TXCN). NWCN is the nation's second-largest regional cable news channel, reaching 2.1 million households in the Pacific Northwest. TXCN is Texas' only regional cable news channel, reaching more than 1.8 million homes. Belo will also retain ownership of two additional news channels and will continue to operate two others through partnerships.

Dunia A. Shive, currently president and Chief Operating Officer of Belo Corp., will become president and Chief Executive Officer of Belo Corp.

Source: Belo

Related stories

• Dallas-based Belo to provide local TV coverage to Yahoo News (Jan. 9, 2008)

See more stories in:

• The Media > Broadcast Media
• The Media > Print Media

Comments

kirk Anonymous

Personally, I think they should spin off their management team.

1 year ago ( Link to this comment | Suggest removal )