NEW YORK (TheStreet) -- Shares of Gannett Co. (GCI) are up 6.35% to $36.50 in pre-market trade after the media and marketing company agreed to buy out the other companies that own Cars.com, and will split it into two publicly traded companies, one focused on broadcasting and digital businesses and the other on publishing, Bloomberg reports.
Gannett said it will buy the 73% interest it doesn't already own in Classified Ventures LLC, which owns Cars.com, for $1.8 billion in cash.
Cars.com lets users check prices, compare models and read reviews of auto dealers. The publishing business will be split through a tax-free distribution of assets to shareholders.
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 number of 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 increase in net income, revenue growth, expanding profit margins, solid stock price performance and growth in earnings per share. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows: