A day after big TV station group Tegna witnessed its stock soaring on the news that it would spin off its Cars.com business into a separately trade company, the company's stock fell sharply on Thursday.
On Wednesday, the McLean, Virginia-based company’s stock rose over 8% to $21.81. Early Thursday, the company’s stock dropped more than 4%.
Also on Wednesday, Tegna announced that longtime CEO Gracia Martore will retire from the company after Cars.com splits from Tegna, expected in the first half of 2017.
Dave Lougee will be president and CEO of Tegna; he is currently president of Tegna’s media business. Alex Vetter will be president/CEO of Cars.com; Vetter is currently CEO of Cars.com.
Another Tegna digital media business, CareerBuilder, is not being spun off with Cars.com -- though Tegna is mulling strategic alternatives. Tegna has a 53% majority interest in CareerBuilder.
Tegna spun off its publishing business, Gannett, in June 2015. Tegna owns owns or operates 46 television stations and is the largest TV station owner of stations affiliated with NBC and CBS.