Gannett, which already owns 27 percent of Cars.com, has agreed to buy out the other companies that own the auto-sales website for $1.8 billion. Gannett also owns USA Today.
Cars.com enables users to check car prices, compare models, and read either expert or consumer reviews. Classic Ventures, the group that owns Cars.com, is backed by four companies in addition to Gannett: McClatchy Co., Tribune Media Co., AH Belo Corp. and Graham Holdings Co.
Gannett president and CEO Gracia Martore, explaining the acquisition, said, “The bold actions we are announcing today are significant next steps in our ongoing initiatives to increase shareholder value by building scale, increasing cash flow, sharpening management focus and strengthening all of our businesses to compete effectively in today’s increasingly digital landscape.”
McClatchy CEO Pat Talamantes added, “Cars.com is a shining example of what the newspaper industry can accomplish working together. We joined forces and from scratch developed a highly successful Internet company that has benefited consumers, auto advertisers, our individual companies and our shareholders. After 17 years, the time is right for an ownership change. We’re happy to monetize a valuable digital asset and feel great that Gannett, our long-term partner in CV, will continue to innovate in order to grow the company and move it forward.”
Cars.com is officially the number-two auto-related site with 30 million visits per month. The website has enjoyed consistent growth since its inception, at about 17 percent per year. Cars.com displays about 4.3 million new and used cars from close to 20,000 dealers.
According to their website, Gannett has a portfolio with a wide range of brands, which includes CareerBuilder, Newsquest and PointRoll. Newsquest is a U.K.-based community news provider; PointRoll is an interactive advertising application that enables advertisers to create, deliver and measure interactive, action-inspiring videos.
Image Credit: Andrew Harrer/Bloomberg
