The Gannett/ BELO deal moves a step closer to being a done deal, but it looks like KMOV's future in St. Louis is still up in the air.
Today, the Justice Department endorsed the Gannett-Belo Merger but with divestiture Of KMOV.
Deadline reports that Gannett already owns the local NBC station in St. Louis, KSDK.
So it isn’t terribly concerned about the Justice Department’s insistence that it unload “substantially all” of the assets at Belo’s local CBS station, KMOV, as a condition to win antitrust approval for its $1.5B acquisition of the TV station power.
“The synergies associated with KMOV-TV were nominal” and won’t change their forecast to realize $175M in savings for each of the first three years after the deal closes, the companies say. Gannett’s local clout “will not be impacted” when KMOV is divested, expected sometime next year.
Gannett and Belo still have to win the FCC’s endorsement before the deal can close. But investors are encouraged. Gannett shares are up 1.9% today