Gannett Company Inc Splitting into Two Public Media Firms

Gannett Company Inc., a major media company that owns USA Today among many other new outlets, announced Tuesday that it was spinning off its business into two separate ventures to streamline trade.

Gannett declared that it will separate all its print and digital business to form two separate public companies.

"The transaction will create two focused companies with increased opportunities to grow organically across all businesses as well as pursue strategic acquisitions," the press statement reads.

Gannett also revealed that it has agreed to take complete ownership of Cars.com, a leading online car listing website for a deal that values it at $2.5 billion.

"Gannett has also signed a definitive agreement to acquire full ownership of Cars.com, one of the leading digital companies in the automotive space. Under the agreement, Gannett will acquire the 73% interest it does not already own in Classified Ventures LLC, which owns Cars.com, for $1.8 billion in cash," according to the statement.

Cars.com was put up for sale a few months earlier for $3 billion by a consortium of media companies called Classified Ventures, which Gannett is a part of.

"The bold actions we are announcing today are significant next steps in our ongoing initiatives to increase shareholder value by building scale, increasing cash flow, sharpening management focus, and strengthening all of our businesses to compete effectively in today's increasingly digital landscape," Gracia Martore, president and chief executive officer of Gannett said in the statement.

"Cars.com doubles our growing digital business, while our recent acquisitions of Belo and London Broadcasting doubled our broadcasting portfolio. These acquisitions, combined with our successful initiatives over the past 2-1/2 years to strengthen our Publishing business, make this the right time for a separation into two market-leading companies," Martore added.

The deal will divide Gannett's assets into print and digital. The print company will include all its publications like USA Today, The Detroit Free press and England-based Newsquest as well.

The digital footprint will include Cars.com and other broadcasting and TV networks. The company is yet to be named.