Gannett’s board of directors has approved completion of the previously announced company separation, which will create the broadcast and digital company Tegna, with the publishing properties doing business as Gannett Co. Gannett expects to have the separation completed June 29.
Gracia Martore, president and CEO of Gannett, will be president and CEO of Tegna. “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,” she 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.”
Robert Dickey, president, Gannett U.S. Community Publishing, will become president and CEO of what the company is calling “new Gannett” following the close of the separation.
Tegna will trade on the New York Stock Exchange under the ticker symbol TGNA and new Gannett will trade as GCI.
As of the completion of the separation, Henry McGee will serve on Tegna’s board of directors. Current Gannett board chairman Marjorie Magner will be chairman of Tegna’s board while Howard Elias, Lidia Fonseca, Jill Greenthal, Gracia Martore, Scott McCune, Susan Ness, Bruce Nolop and Neal Shapiro will be directors.
Larry Kramer will retire as president and publisher of USA Today and is expected to become a director of new Gannett following the close. Debra Sandler and Chloe Sladden, a former Twitter executive, will join the board of directors.