Gannett Co. Inc. said Monday its board has approved the completion of its planned spinoff deal that will create two publicly traded companies housing its broadcasting and digital operations, and publishing properties and digital assets. The former two businesses will be transferred to a company to be called Tegna, while the latter will stay with the new Gannett. The deal will be completed on June 29, when shareholders will retain their Gannett shares for the renamed Tegna, and be offered one share of new Gannett for every two Gannett shares they own as of June 22. Gracia Martore, currently president and chief executive of Gannett, will become president and CEO of Tegna. "We believe strongly that this transaction will enhance performance, unlock shareholder value and give investors access to more targeted investment opportunities with trading valuations that better reflect the distinctive characteristics and growth profiles of both companies," she said in a statement. Tegna will trade on the New York Stock Exchange under the symbol "TGNA", while the new Gannett will retain its current ticker symbol "GCI". Once the deal is completed, Larry Kramer, publisher and president of USA Today and the founder of MarketWatch, will retire. Shares fell 0.8% in early trade, but are up 12% in the year so far, while the S&P 500 has gained 1.4%.
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