Gannett to spin off publishing business

Gannett, the owner of USA Today, announced today it will create two publicly traded companies as it moves to separate its broadcasting and digital businesses from its publishing division, a move aimed at unlocking the value of more profitable assets as print advertising sales continue to dwindle.

According to a USA Today report, the broadcasting and digital company will be renamed and headed by Gannett CEO Gracia Martore. It will own or provide services to 46 TV stations and operate several websites not tied to newspapers, including CareerBuilder.com and Cars.com.

The planned spin-off of the publishing business, including USA Today, 81 other daily newspapers and their affiliated websites - including the Springfield News-Leader - will be implemented through a tax-free distribution of its publishing assets to shareholders, according to the report.

Investors cheered the separation of Gannett's print assets. Shares rose 6.35 percent in pre-market trading on Tuesday morning to $36.50 per share.

Read more from USA Today.

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