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Updated below: Confused, are you? Well, so was I until I dug deeper into SEC filings from Gannett (NYSE: GCI) over the last two years. In a…

imageUpdated below: Confused, are you? Well, so was I until I dug deeper into SEC filings from Gannett (NYSE: GCI) over the last two years. In a proxy statement filed by the newspaper company this Friday with SEC, this paragraph raised my interest: “In March 2008, we purchased for $4.6 million the remaining shares in Point Roll, Inc., a Gannett subsidiary, held by Chris Saridakis, who became our Senior Vice President and Chief Digital Officer in January 2008. The purchase price for the shares held by Mr. Saridakis was determined pursuant to the terms of an earn-out established at the time of Gannett

  1. I think your information might not be that accurate. Saradakis was one of three remaining shareholders that sold their shares in equal parts over the past three years (8% over three years equally each year; 2008 was the last year). So, when he sold his "remaining" interest for $4.6mm it is most likely only 1%. The other shareholders was the other co-founder Gelles and head of sales, Ellenthal.

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  2. Jeff
    Thanks on the clarification…you might be right. I have updated the post to reflect that ambiguity…

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  3. No problem Ali. I just checked the historical Gannett filings and I think they sold the remaining 8% in equal parts in March 2006, 2007 and 2008. This is in addition to the $100mm sale in June 2005. So, that would mean that these guys were paid a lot more over the three years. According to my calculation, Saradakis probably made $4.6 mm times 3, and that is just the earnout portion of the deal!). The filings do not say how much of the original $100mm he got when he sold in June 2005.

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