Cars.com to Spin Off as Independent Company

Cars.com, the U.S.-based auto sales consumer website, is being spun off to shareholders by television broadcaster Tegna Inc. in a move that will create two independently publicly traded companies.

Tegna expects to complete the split in the first half of 2017. CEO Gracia Martore will retire when the spinoff is complete. Cars.com will be headed by Alex Vetter, a veteran executive with the unit. Tegna’s remaining TV operations will be led by Dave Lougee, currently president of Tegna Media.

Tegna itself was spun off from Gannett Co. last year, but its share price has dropped more than one-third since then. The company says separating its digital and broadcast operations next year will enable each to pursue its own business, operating and financial strategies.

Cars.com, which was co-launched by Gannett in 2011, will emerge from the split with no debt but will pay Tegna a one-time dividend. The web-based service says its smartphone app generates some 7 million visits per month.