By: E&P Staff Gannett said today that it has agreed to purchase the Tribune Co.'s WATL-TV in Atlanta for $180 million. Gannett will continue to own and operate WXIA-TV, the NBC affiliate in Atlanta.
This is Tribune's first divestiture since announcing last week it planned to sell at least $500 million in assets. Additionally, the company plans to cut $200 million and buy back 25% of its stock.
"Our goal is to generate additional shareholder value through improved operating performance, asset sales and disciplined repayment of debt over the next several years," Dennis FitzSimons, chairman and CEO of Tribune, said in a statement. "The sale of WATL further demonstrates our commitment to delivering value for shareholders."
Tribune acquired a minority stake in WATL in 1995 and obtained full ownership of the station in 2000 as part of its acquisition of Quest Broadcasting. WATL, currently an affiliate of The WB Network, will join Fox Television's MyNetworkTV when the network launches in Sept. 5, 2006.
"Atlanta is a terrific TV community that is a perfect location for a duopoly such as this," Roger Ogden, president and CEO of Gannett broadcasting, said in a statement. "For Gannett, expanding our role here is good business and great for the community."
The purchase of the Tribune station marks Gannett's third duopoly. Gannett owns and operates the ABC and NBC stations in Jacksonville, Fla., and two stations in Denver including the NBC affiliate.
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