The sale, upon government approval, will satisfy Gannett's and Sander Media's obligations under the previously announced proposed consent decree with the U.S. Department of Justice in connection with Gannett's acquisition of Belo.
As part of the sale, Sander Media will convey to Meredith substantially all of the assets used in the operation of KMOV-TV which Sander Media will acquire upon close of the Gannett-Belo transaction. In addition, Gannett will convey certain other assets that are needed to provide services to KMOV.
Under a separate agreement, KTVK and KASW in Phoenix will be sold to Meredith as well. At the closing, Meredith will simultaneously convey KASW to SagamoreHill of Phoenix, LLC, which, through its affiliates, owns and operates two television stations in two markets. The agreed upon purchase price for the three stations is $407.5 million in cash, contingent upon regulatory approvals and other customary closing conditions.
In essentially a pro forma move, the Department of Justice Monday officially terminated its antitrust review of the Gannett/Belo TV station group merger. The Justice Department had already said it was OK with the deal so long as Gannett/Belo spun off KMOV to a third party.