NEW YORK (TheStreet) -- Gannett Co. (GCI), one of the newspaper owners of Cars.com, is exploring a bid for all of the auto sales website and has discussed joining with private equity firms in a deal that could reach $3 billion, sources say, Reuters reports.
Gannett is one of the five newspaper publishers that back Classified Ventures which owns Cars.com. Cars.com helps people buy and sell cars on the Internet.
Gannett wants to be part of any future deal involving Cars.com, either by leading a buyout or rolling over its existing equity stake to support a deal, sources add, according to Reuters.
Gannett holds a 27% stake in Classified Ventures.
Shares of Gannett are down slightly to $26.95 in heavy trading.
TheStreet Ratings team rates GANNETT CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GANNETT CO (GCI) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."