Tegna to sell 85% of CareerBuilder to Apollo Global for $250 million

Apollo Global Management to buy CareerBuilder from Tegna

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TEGNA (TGNA) announced it has entered into a definitive agreement, together with the other owners of CareerBuilder to sell CareerBuilder to an investor group led by investments funds managed by affiliates of Apollo Global Management, LLC (APO) and the Ontario Teachers’ Pension Plan Board.
TEGNA’s estimated cash proceeds from the sale are expected to be approximately $250M, which will be used to retire existing debt and for other general corporate purposes.
As part of the agreement, TEGNA will remain an ongoing partner in CareerBuilder, reducing its current 53% controlling interest to 12.5% on a fully-diluted basis once the proposed transaction is complete.
As a result, CareerBuilder will no longer be consolidated within TEGNA’s reported operating results and will instead be reflected as an equity investment within TEGNA’s financial statements.
Earlier this years, TEGNA sold Cars.com in an IPO. The parent of USA Today, previously known as Gannett is spinning off parts of its operation to pay down debt.
The proposed transaction is subject to receipt of customary regulatory approvals and satisfaction of other conditions and is expected to close in the third quarter of 2017.
TEGNA was advised by Morgan Stanley on the proposed transaction and was also assisted by Greenhill & Co. Wachtell, Lipton, Rosen & Katz acted as legal advisor.

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The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.

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