Belo Corp. Completes Spin-Off of Newspaper Businesses
09 February 2008 - 8:00AM
PR Newswire (US)
Transaction Creates One of the Largest Pure-Play Television
Companies DALLAS, Feb. 8 /PRNewswire-FirstCall/ -- Belo Corp.
(NYSE:BLC) today announced that it has completed the spin-off of
its newspaper businesses and related assets into a publicly-traded
company called A. H. Belo Corporation ("A. H. Belo"). The spin-off
was implemented through a special tax-free stock dividend to
shareholders on all outstanding shares of Belo Corp. common stock.
Shares in A. H. Belo will begin regular trading on the New York
Stock Exchange on February 11, 2008, under the ticker symbol "AHC."
The new company will have approximately 17.6 million Series A
shares and approximately 2.9 million Series B shares outstanding.
"Completing the spin-off marks the beginning of an exciting new
period in Belo Corp.'s history as it becomes one of the largest
pure-play television companies in the country," said Dunia A.
Shive, president and Chief Executive Officer. "As a stand-alone
television company, with a strong management team and a
best-in-class collection of television assets, Belo is ideally
positioned to capitalize on growth opportunities. We would
especially like to acknowledge our employees for their continued
hard work and dedication throughout this process." Belo has
approximately 3,200 employees and annual revenues of approximately
$775 million. The Company owns and operates 20 television stations,
including ABC, CBS, NBC, FOX, CW and MyNetwork TV affiliates,
reaching 14.3 percent of U.S. television households, as well as the
stations' associated Web sites. Nearly all Belo stations rank first
or second in their local market based on audience reach. Belo owns
stations in seven of the top 25 markets in the nation, with six
stations located in the fast-growing, top-14 markets of Dallas/Fort
Worth, Houston, Seattle/Tacoma and Phoenix. Belo additionally owns
or operates six cable news stations -- Northwest Cable News (NWCN),
Texas Cable News (TXCN), Arizona NewsChannel, NewsWatch on Channel
15 (New Orleans), 24/7 NewsChannel (Boise) and Local News on Cable
(Hampton/Norfolk) -- and manages one television station through a
local marketing agreement. The majority of Belo's management team
remains intact following the transaction. Dennis Williamson will
continue as executive vice president/Chief Financial Officer; Guy
Kerr continues as executive vice president/Law and Government and
Secretary; and Marian Spitzberg continues as senior vice
president/Human Resources. Joining the Management Committee is
Peter Diaz, executive vice president/Television Operations who has
more than 30 years media experience. Shive and James M. Moroney III
will join the Belo Board of Directors joining Robert W. Decherd
(non-executive Chairman), Henry P. Becton, Jr. (Lead Director),
Judith L. Craven, M.D., M.P.H., Dealey D. Herndon, Wayne R.
Sanders, William T. Solomon, M. Anne Szostak and Lloyd D. Ward.
Goldman, Sachs & Co. acted as financial advisor and Locke Lord
Bissell & Liddel, Baker Botts, Jones Day and Wiley Rein served
as legal advisors to Belo Corp. and A. H. Belo Corporation for the
spin-off transaction. About Belo Corp. Belo Corp. is one of the
nation's largest pure-play publicly-traded television companies,
with annual revenue of approximately $775 million. The Company owns
and operates 20 television stations, including ABC, CBS, NBC, FOX,
CW and MyNetwork TV affiliates reaching more than 14 percent of
U.S. television households, and their associated Web sites, in 15
highly-attractive markets across the United States. Belo stations
consistently deliver distinguished journalism for which they have
received significant industry recognition including nine Alfred I.
duPont-Columbia University Silver Baton Awards; eight George Foster
Peabody Awards; and 19 national Edward R. Murrow Awards -- all
since 2000, and in each case more than any other commercial station
group in the nation. Nearly all Belo stations rank first or second
in their local market. Belo owns stations in seven of the top 25
markets in the nation, with six stations located in the
fast-growing, top-14 markets of Dallas/Fort Worth, Houston,
Seattle/Tacoma and Phoenix. Additionally, the Company has leveraged
its local television assets to create regional cable news channels
in Texas and the Northwest increasing its impact in those regions.
Additional information is available at http://www.belo.com/ or by
contacting Paul Fry, vice president/Investor Relations &
Corporate Communications at 214-977-6835. Statements in this
communication concerning Belo's business outlook or future economic
performance, anticipated profitability, revenue, expenses,
dividends, capital expenditures, investments, future financings, or
other financial and non-financial items that are not historical
facts, are "forward-looking statements" as the term is defined
under applicable federal securities laws. Forward-looking
statements are subject to risks, uncertainties and other factors
that could cause actual results to differ materially from those
statements. Such risks, uncertainties and factors include, but are
not limited to, uncertainties regarding the consequences (including
tax consequences) and other effects of the spin-off of the
newspaper business of Belo; changes in capital market conditions
and prospects, and other factors such as changes in advertising
demand, interest rates and programming and production costs;
changes in viewership patterns and demography, and actions by
Nielsen; technological changes, including the transition to digital
television and the development of new systems to distribute
television and other audio-visual content; development of Internet
commerce; industry cycles; changes in pricing or other actions by
competitors and suppliers; Federal Communications Commission and
other regulatory, tax and legal changes; adoption of new accounting
standards or changes in existing accounting standards by the
Financial Accounting Standards Board or other accounting
standard-setting bodies or authorities; the effects of Company
acquisitions and dispositions; general economic conditions; and
significant armed conflict, as well as other risks detailed in
Belo's other public disclosures and filings with the Securities and
Exchange Commission ("SEC") including Belo's Annual Report on Form
10-K. DATASOURCE: Belo Corp. CONTACT: Paul Fry, vice
president-Investor Relations & Corporate Communications of Belo
Corp., +1-214-977-6835 Web site: http://www.belo.com/
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