Gannett Agrees to Buy Cars.com for $1.8 billion

Gannett Headquarters. Tysons Corner, Virginia.

Gannett Headquarters. Tysons Corner, Virginia.

Gannett, owner of USA Today, has agreed to buy out the shares of car deals site Cars.com, for $1.8 billion, as per Bloomberg News, referring to an individual acquainted with the matter.

Cars.com is which is owned by Classified Ventures, a JV of Gannett and four other daily paper and former publishing companies: McClatchy, Tribune Media, A.H. Belo and Graham Holdings.

Gannett already owns 27% of the Cars.com, and the buyout would value the whole business at about $2.5 billion. Gannett shares climbed 4.4% to $34.32 this morning, raising the market value to about $7.7 billion. The shares propelled to the extent that 9% in after-hours trading before settling over to unaltered later on. Shares of McClatchy climbed 21% to $5.50 nightfall regardless were up very nearly 13% later in the day. A.H. Belo climbed around 5.2% (after-hours trading). Tribune and Graham were remained unchanged.

Gannett and Cars.com both declined to comment on the buyout.

Cars.com is one of the leading online sites for research and shopping for new and used cars. Established in 1998, Cars.com permits clients to compare prices and models, read reviews and see online value offers from various nearby dealers. Most of its revenuew comes from classified ad sales to dealers. It offers a free posting offer for those who want to use the site, but later on charges when it surpassed extra days after the first month and for other premium options related to advertisement such as photographs.

Bloomberg reported the acquisition announcement could be done by Tuesday. It is reported that the owners other than Gannett will have five-year agreements with Cars.com that permit them to proceed get revenue for advertising in their separate locales.

The acquisition of Cars.com would help Gannett fill the gap left by reduced advertising incomein its print publications. Gannett additionally holds a much larger stake in a venture with Tribune, McClatchy and Microsoft that owns Careerbuilder.

“CareerBuilder and Cars.com, being a digital version of classified advertising, (are) a key component of the publishing business,” says James Goss, managing director Barrington Research Associates in Chicago. “It does fit in very well.”

Goss remarked that Gannett wishes to keep its publishing business the core, “It hasn’t been looking to abandon publishing,” he says. “It looks to be stabilizing it and growing the areas that can be grown.”

Carrie Ann
Carrie Ann is Editor-in-Chief at Industry Leaders Magazine, based in Las Vegas. Carrie covers technology, trends, marketing, brands, productivity, and leadership. When she isn’t writing she prefers reading. She loves reading books and articles on business, economics, corporate law, luxury products, artificial intelligence, and latest technology. She’s keen on political discussions and shares an undying passion for gadgets. Follow Carrie Ann on Facebook

Leave a Reply

Your email address will not be published.

Recent Posts

Juul Products Banned – Will The FDA Win The Battle?

Juul Products Banned – Will The FDA Win The Battle?

In a written statement, FDA Commissioner Robert M. Califf stated, “Today’s action is further progress on the FDA’s commitment to ensuring that all e-cigarette and electronic
2 days ago
The Mark Cuban Cost Plus Drug Company Takes on Big Pharmas

The Mark Cuban Cost Plus Drug Company Takes on Big Pharmas

Commonly used generic drugs are available at a 15% markup, plus a $3 dispensing fee and $5 shipping fee. In an interview with PBS News, Cuban told the host that the Mark Cuban phar
2 days ago
The Brookfield Global Transition Fund Promises Net Zero Returns

The Brookfield Global Transition Fund Promises Net Zero Returns

According to a written statement issued by the company, they have already deployed $2.5 billion to fund decarbonization technologies in the US, the UK, Germany, and North America.
3 days ago
Network Configuration Error Causes Cloudflare Outage Across 19 Locations

Network Configuration Error Causes Cloudflare Outage Across 19 Locations

The Cloudflare outage was most problematic for users of Cloudflare’s DNS lookup service. “Customers attempting to reach Cloudflare sites in impacted regions will observe 50
3 days ago
Tesla Employee Lawsuit Alleges Violation of Federal Law Amidst Layoffs

Tesla Employee Lawsuit Alleges Violation of Federal Law Amidst Layoffs

Tesla laying off employees has impacted workers across divisions from human resources to engineering. The plaintiffs are seeking 60 days of compensation and benefits for all those
4 days ago
Nasdaq’s Opening Bell Ushers in a Metaverse Moment for Women

Nasdaq’s Opening Bell Ushers in a Metaverse Moment for Women

Back in 2020, she wrote a feature for Forbes, where she confidently penned that a new era will herald all good things metaverse, she asserted that it “will unleash amazing creati
4 days ago