Tribune Sells Gracenote To Nielsen for $560M

Tribune Media Co. has agreed to sell substantially all of its digital and data business operations — comprising Gracenote video, music and sports — to the Nielsen Co. for $560 million in cash. Tribune will retain its ownership of the business-to-consumer websites, Covers.com and ProSportsDaily.com.

Tribune said it expects to receive approximately $500 million in after-tax proceeds from the transaction, the majority of which will be used to repay existing debt with the remainder to be reinvested in the business. The sale is expected to close during the first quarter of 2017.

Tribune Media 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. This special dividend would be paid from existing cash. The company plans to continue its existing $400 million share repurchase program, authorized earlier this year, which has approximately $168 million of remaining capacity.

“We are extremely proud to have grown our digital and data business into a vibrant global enterprise, with talented and creative people who deliver outstanding service to blue-chip clients around the world,” said Peter Liguori, Tribune Media’s president-CEO. “From a strategic standpoint, however, 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 acquired Gracenote in 2014 and its music service was immediately added to Tribune Media Services, its provider of television and movie metadata. The combined entity was rebranded Gracenote. The entertainment data business has grown during the past three years, expanding into Europe, India, Latin America and Australia. Gracenote also acquired a digital sports data business in 2015 and launched Gracenote Sports.