Tribune To Sell Its Digital And Data Business; To Declare Special Dividend

(RTTNews) - Tribune Media Company (TRCO) announced it has agreed to sell substantially all of its Digital and Data business operations, comprised of Gracenote video, music and sports, to the Nielsen Company (NLSN) for $560 million in cash. Tribune expects to receive approximately $500 million in after-tax proceeds from the transaction, the majority of which will be used to repay existing debt. The company also announced its intention to declare and pay a special dividend of approximately $500 million during the first quarter of 2017 to stockholders and warrantholders.

Peter Liguori, Tribune Media's president and CEO, said: "From a strategic standpoint, we are pleased to be streamlining our company so that we can focus even more intently on seizing future opportunities for our local television and entertainment business. Further, our intention to pay a special dividend, continue our share repurchase program and repay debt reflects our long-standing commitment to returning capital to shareholders while maintaining a balanced approach to our overall capital structure."

Tribune Media will retain its ownership of the business-to-consumer websites, Covers.com and ProSportsDaily.com.