Tribune Co. said it is selling its two daily newspapers in Stamford and Greenwich, Conn., to Gannett Co. Inc. for $73 million in a transaction between the nation’s two largest newspaper companies.
The sales of the Greenwich Time and The Advocate of Stamford had been expected since the agreement was leaked a week earlier.
Tribune is the second-biggest U.S. newspaper publisher by circulation behind McLean, Va.-based Gannett.
The Connecticut papers have a combined circulation of 39,000 and are the smallest of Tribune’s 11 dailies. Scott Smith, president of Tribune’s publishing division, said the papers are “excellent” but do not fit the company’s strategic focus on larger publishing and interactive businesses.
The Chicago-based parent is still expected to make a decision by the end of March on a possible restructuring or other move following a six-month strategic review.
Its newspaper readers continue to migrate to the Internet, with advertisers following. In January, the most recent month for which data are available, advertising revenue from its newspaper declined 7.3 percent from a year earlier and circulation revenue dipped 5.2 percent.
“With this transaction, we have exceeded our goal of selling $500 million in non-core assets as part of the performance improvement plan we launched in 2006,” said Dennis FitzSimons, Tribune chairman and chief executive officer.
Other Tribune assets shed since last summer include television stations in Boston, Atlanta and Albany, N.Y.; 2.8 million shares of Time Warner common stock, and a former Los Angeles Times printing facility.
Tribune acquired The Advocate and Greenwich Time in June 2000, as part of its acquisition of The Times Mirror Company. In Connecticut, Gannett owns the Norwich Bulletin daily newspaper.
No Real Estate
Tribune said the sale of Southern Connecticut Newspapers does not include real estate in Stamford and Greenwich, which it will sell separately after a transitional lease to Gannett. Gannett spokeswoman Tara Connell said both newspapers will eventually relocate to new buildings but will remain in their communities.
All employees will be asked to reapply for their jobs, which Connell said will allow Gannett to learn more about employees and allow former Tribune staff to show their interest in joining Gannett.
Advocate pressroom employees will be invited to apply for jobs at Gannett’s newspaper in Westchester County, N.Y., which will print the Stamford and Greenwich newspapers after the deal is finalized.
Once approved by regulators, the sale will add to Gannett’s stable of 90 U.S. dailies, which include USA Today.
“Gannett has deep roots in the New York/Connecticut area and these daily newspapers are a great fit with our operations in that region,” said Craig Dubow, Gannett’s chairman, president and CEO.
Gannett reportedly outbid Denver-based MediaNews Group Inc. for the papers.
Prudential Equities Group analyst Steven Barlow said Gannett paid a reasonable price given the premium advertising market it is gaining.
