Gannett Acquires 10% Stake In CareerBuilder From Tribune For $135 Million
Gannett Co., Inc. (NYSE:GCI) has bought 10% of CareerBuilder.com from Tribune Company for $135 million. After this acquisition, Gannett now owns 50.8% of CareerBuilder. Based on the equity acquisition, CareerBuilder is worth about $1.35 billion. CareerBuilder’s rival, Monster Worldwide, Inc. (NASDAQ:MNST) is worth about $2.37 billion based on it’s market capitalization.
“CareerBuilder is a terrific company, with great growth potential that just keeps delivering more for Gannett and our partners,” stated Craig Dubow, Chairman, President, and CEO of Gannett Co., Inc. “We were delighted when the opportunity arose to acquire more of the company while maintaining a good, solid relationship with our partners.”
Tribune Company has been struggling to pay off $13 billion in debt. A lot of the debt was accumulated by taking their company private and from a decrease in advertising revenue. Some of Tribune Company potential strategies for paying off their debt includes selling the Chciago Cubs and Wrigley Field. Tribune is even debating whether to sell off the Chicago Tribune Tower and the L.A. Times.
Tribune Company now owns 30.8% of Careerbuilder.com. Other owners in Careerbuilder includes The McClatchy Company (NYSE:MNI) at 14.4% and Microsoft Corporation (NASDAQ:MSFT) at 4%.
For additional details, check out the press release.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry