Gannett Acquires Majority Stake In Careerbuilder

From the Associated Press:

McLean media giant Gannett Co. said Wednesday that it bought a 10 percent interest in CareerBuilder from Tribune Co. for $135 million, giving it a majority stake in the employment Web site.

The deal bumps Gannett's interest in CareerBuilder up to 50.8 percent. Tribune now owns 30.8 percent of the Web site, with McClatchy Co.'s stake at 14.4 percent and Microsoft Corp.'s interest at 4 percent.

Gannett Chairman, President and Chief Executive Craig Dubow said in a statement that he does not anticipate the transaction creating any major changes at CareerBuilder.

The controlling interest gives Gannett, publisher of USA Today, three seats on CareerBuilder's six-seat board of directors. The other seats are held by Tribune, McClatchy and CareerBuilder.

Tribune, which was bought out last year in an $8.2 billion deal, is selling the Chicago Cubs ballpark, baseball team and a 25 percent interest in a local sports channel to raise cash to pay down $13.4 billion in debt, mostly related to the buyout. Real estate mogul Sam Zell, who helped lead the media company's buyout, said in a statement that the Gannett deal helps "monetize some of the value CareerBuilder has built over the years" while allowing it to keep some interest in the company.

By Dan Beyers  |  September 3, 2008; 9:57 AM ET  | Category:  Gannett
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