Tegna ready to spin off Cars.com
The board of McLean-based media company Tegna Inc. has approved the spin-off of Cars.com, a move that will create two publicly traded companies.
Cars.com shares are expected to begin trading on June 1.
“This spin-off is the culmination of a multiyear transformation of our company, and the board is confident that both companies are well positioned to execute their strategic plans for growth and create shareholder value,” Gracia Martore, the president and CEO of Tegna, said in a statement. She will retire upon the closing of the spinoff.
Tegna has 46 television stations. Cars.com is a digital automotive marketplace.
The Cars.com spinoff follows the June 2015 separation of the broadcast and newspaper divisions of Gannett Co. Inc. The spun-off newspaper group kept the Gannett name while the broadcast group became Tegna.
Tegna said the Cars.com spinoff will take place through a pro-rata distribution of outstanding Cars.com shares to Tegna stockholders of record at the close of business on May 18.
Stockholders will retain their Tegna shares. They receive one share of Cars.com for every three Tegna shares.
Tegna Media President Dave Lougee will become president and CEO of Tegna upon completion of the separation. Alex Vetter will remain president and CEO of Cars.com.