Belo to Create Newspaper Spinoff
October 1, 2007
Belo Corp., which publishes the Dallas Morning News, said it will spin off its newspaper business into the stand-alone entity, A.H. Belo Corp.
The spinoff, seen as a company move to spark sagging stock prices, is expected to happen during the first quarter of 2008 through a tax-free distribution of A.H. Belo stock to Belo Corp. shareholders, The Wall Street Journal reported Monday.
In addition to the Dallas Morning News, A.H. Belo’s portfolio will include Web sites, printing businesses for direct mail and commercial projects.
After the spinoff takes effect, Belo Corp. will own and operate 20 television stations that reach about 14 percent of U.S. television households.