Spinoff nets Belo Corp. $51.9 million
By Leah McBride Mensching, Wednesday 16 January 2008 at 23:41 :: Media Ownership :: #1112 :: rss
Belo Corp. disclosed Tuesday it expects to reap US$51.9 million from the spinoff of its newspapers into a separate publicly traded company, according to a statement in a regulatory filing.
The media company's board approved the deal, which includes a special tax-free stock dividend distribution to shareholders, Friday. Following the spin-off, Belo will owe $18 million in federal income taxes, as well as state tax, on the gain, according to the filing.
Distribution of the new company's common stock to Belo shareholders is scheduled for Feb. 8, and trading on the New York Stock Exchange is expected to begin the following Monday, the New York Times reported Sunday.
Stockholders will receive a 0.2 share in the newspaper company, to be called A.H. Belo, for every share they own. A.H. Belo will own four daily newspapers, including The Dallas Morning News.
Belo Corp. will retain its 20 local television stations, according to Business Week.
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