Gannett completes its Belo acquisition

Gannett, the parent company of USA TODAY, said Monday it has closed its $2.2 billion purchase of Belo in a deal that nearly doubles its portfolio of TV stations.

The deal's closing was anticipated after the McLean, Va.-based company said last week that it agreed to unload some assets to clear all regulatory hurdles. To address federal regulators' concern over media ownership concentration, Gannett said Monday it will sell KMOV in St. Louis to media company Meredith.

Under a separate agreement, Gannett and Sander Media — a holding company that has a station-operation agreement with Gannett — will also sell to Meredith two other stations, KTVK-TV and KASW-TV in Phoenix. Meredith will pay $407.5 million for all three stations.

The Belo acquisition, announced in June, expands Gannett's stable of TV stations to 40 from 23 and its reach to nearly a third of U.S. households. The company is now the largest independent station group of major network affiliates in the top 25 markets, with 21 stations in those regions.

The deal makes the company the largest owner of CBS affiliates and expands its NBC affiliate group, which is already No. 1. Gannett's shares closed up nearly 3% Monday, at $28.61.

"We are thrilled to combine these two storied media companies, both of which are known for award-winning journalism, operational excellence and strong brand leadership," Gannett CEO Gracia Martore said in a statement. "The completion of this transaction marks a significant milestone in its ongoing transformation into a higher-margin and more highly diversified company in the rapidly evolving media business."

Gannett acquired Dallas-based Belo for $13.75 a share, or $1.5 billion in cash, and the assumption of $715 million of outstanding debt.

The closing follows all regulatory clearances and approval of the deal by Belo shareholders. Belo stock will no longer be listed on the New York Stock Exchange.