TYSONS, Va.--(BUSINESS WIRE)--May 6, 2019--
TEGNA Inc. (NYSE: TGNA) today announced the company has entered into a
definitive agreement with Cooper Media to acquire leading 24/7 multicast
networks Justice Network and Quest. TEGNA will pay approximately $77
million in cash for the approximately 85 percent of Justice Network and
Quest that it does not currently own, valuing the networks at $91
million. The transaction is expected to be accretive to EPS within the
first 12 months and immediately accretive to free cash flow.
The acquisition provides TEGNA with two leading multicast television
networks that reach more than 87 million U.S. television homes. Justice
Network and Quest each offer unique ad-supported programming and are
among the fastest-growing and top entertainment multicast networks in
the U.S.
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Justice
Network, which launched in 2015, is focused on the popular
category of true-crime, mystery and investigation.
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Quest,
which launched last year, features science, history, engineering and
daring adventure-reality series. It is the only broadly-distributed
factual-entertainment multicast network of its kind.
“Consumer viewing habits are shifting toward over-the-air consumption
supplemented by inexpensive over-the-top services,” said Dave Lougee,
president and CEO, TEGNA. “Justice and Quest allow us to fully
capitalize on the growth in over-the-air television audiences, which has
increased by more than 48 percent over the past eight years.”
“It has been an honor to work with TEGNA to build Justice Network and
Quest from the ground up, while informing and entertaining the growing
over-the-air audience,” said Lonnie Cooper, chairman of Cooper Holdings.
“The timing is right for Cooper Holdings to focus on its core agency
businesses, while cheering on the networks’ continued success as part of
the TEGNA family.”
TEGNA will finance the transaction through the use of available cash and
borrowing under its existing credit facility, and it will not have a
material impact on TEGNA’s leverage.
The transaction is subject to Hart-Scott-Rodino clearance and customary
closing conditions and is expected to close by the end of the second
quarter of 2019. Brian Weiss, president and general manager of Cooper
Media, will join TEGNA and continue to run Justice Network and Quest,
which are based in Atlanta.
Nixon Peabody LLP is acting as legal counsel to TEGNA in connection with
the proposed transaction.
About TEGNA
TEGNA Inc. (NYSE: TGNA) is an innovative media company that serves the
greater good of our communities. With 49 television stations and two
radio stations in 41 markets, TEGNA delivers relevant content and
information to consumers across platforms. It is the largest owner of
top 4 affiliates in the top 25 markets, reaching approximately one-third
of all television households nationwide. Each month, TEGNA reaches 50
million adults on-air and approximately 35 million across its digital
platforms. TEGNA has been consistently honored with the industry’s top
awards, including Edward R. Murrow, George Polk, Alfred I. DuPont and
Emmy Awards. TEGNA also delivers innovative and unparalleled solutions
for advertisers through TEGNA
Marketing Solutions (TMS). TMS is a one-stop shop that helps
businesses thrive through an unmatched suite of services and solutions
that reach consumers across television, email, social and over-the-top
(OTT) platforms, including Premion,
TEGNA’s OTT advertising service. Across platforms, TEGNA tells
empowering stories, conducts impactful investigations and delivers
innovative marketing solutions. For more information, visit www.TEGNA.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190506005370/en/
Source: TEGNA Inc.
For media inquiries, contact:
Anne Bentley
Vice
President, Corporate Communications
703-873-6366
abentley@TEGNA.com
For investor inquiries, contact:
John Janedis, CFA
Senior
Vice President, Capital Markets & Investor Relations
703-873-6222
jjanedis@TEGNA.com
