The deal was completed after Gannett and Sander Media announced KMOTV in St. Louis would be sold to marketing and media company Meredith to satisfy their obligations under an agreement with the Justice Department to clear the Belo purchase.
Under a separate agreement, Gannett and Sander 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 42 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.
"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, based in McLean, Va., 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.
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