Media broadcasting company Tegna Inc. said on Monday it is selling its controlling interest in CareerBuilder LLC to an investor group led by investment funds managed by affiliates of Apollo Global Management and the Ontario Teachers' Pension Plan Board. Along with Tegna, newspaper and media publishers McClatchy Co. and Tribune Media Co. will sell stakes in CareerBuilder. McClatchy will sell a majority of its 15% ownership. The company expects to receive approximately $76 million from the sale. Tribune Media, which holds a 32% ownership stake, expects to receive $157 million in cash from the deal. Prior to the sale, CareerBuilder has committed to making a normal distribution to current shareholders. McClatchy said in a news release it expects to receive about $8 million from that. And as part of the deal Tegna, McClatchy and Tribune Media will hold on to minority ownership stakes in CareerBuilder. Shares of Tegna have gained more than 10% in the year to date, while Tribune Media shares have gained nearly 17% and shares of McClatchy Co. have dropped close to 15%. By comparison, the S&P 500 index is up more than 9% in year so far.
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