Belo Corp (NYSE:BLC): garners profits with Gannett, Gray Television, Inc (NYSE:GTN)
Gannett Co. Inc. is buying the Dallas-based Belo Corp as well as WFAA-TV, for an amount of $2.2 billion. BLC considers the sale to be financially an outstanding one and one that will garner profits for the shareholders. When you flip the coin over, Gannett is equally profited. With this acquisition, it gets the scale that it had been looking for and an easy entry into hitherto untested waters such as San Antonio, Dallas, Houston and Seattle. The company’s TV stations also get doubled with the Belo stations coming on board.
In an emerging marketplace such as the one that currently exists in these regions, strategies such as this one are not just a bonus but a necessity. The Dallas Morning News owned by the A. H. Belo Corporation is not part of this acquisition as it has been spun-off in 2007. Both the companies’ board of directors have put forth their unanimous approval for the acquisition though 2/3rd of the BLC shareholders will still have to vote in its favour in order for it to be taken forward.
The TV industry seems to be in top gear. Last month, Gray Television, Inc (NYSE:GTN) had announced that all of its 41 television stations will be aired on the Syncbak-owned Internet TV platform. This brings the number of stations that deploy the Syncbak technology to around 200. The company’s Internet TV platform uses the location-based authentication technology that enables local television-stations to stream their respective signals to in-market consumers. In partnering with Syncbak, Gray Television, Inc (NYSE:GTN) will be able to replicate its current local, national as well as affiliate partnerships on various mobile devices and the internet.
Technology, media and reach
Syncbak’s system had been under test at four of Gray’s stations for several months. Gray has evaluated those initiatives carefully and decided to launch all its television stations via the Syncbak platform, commercially. In the forthcoming weeks, the Gray stations will stream all programs on Syncbak, which are within their schedules and those that have received streaming-clearance to local viewers within every market. Technology, media and reach are three factors that are a potent combination for a profitable business in today’s highly commercialized world and Belo Corp (NYSE:BLC) and Gray Television, Inc (NYSE:GTN) are leaving no stone unturned to take advantage of all these factors.