US antitrust enforcers on Monday said that Gannett Company Inc. can move ahead with its purchase of Dallas-based A.H. Belo Corporation as long as the deal does not include KMOV-TV. KMOV is a St. Louis television station owned by Belo.
Reuters, citing a statement by the US Justice Department, said that KMOV would give Gannett a dominant position in the St. Louis area if it were part of the deal. This would result in higher prices for advertisers.
Gannett agreed to buy Belo for $1.5 billion in June. The deal would nearly double Gannett's broadcast holdings to 43 stations should it go through, the report said.
Gannett agreed to transfer ownership of six Belo stations in Phoenix and St. Louis to Sander Media because it already owned stations in those markets. Sander plans to operate the stations, while Gannett will provide services to Sander, Reuters said.
In a statement, Justice Department's Bill Baer said the full divestiture of KMOV will ensure that Gannett will remain a vigorous competitor in St. Louis. Baer is an assistant attorney general in charge of the department's antitrust division, the report said.
Join the Conversation