King World Says It’s Off the Market, Announces Special Dividend

The distributor of television programs such as “The Oprah Winfrey Show” and “Wheel of Fortune” is no longer up for sale and instead said it plans to invest in expanding its business.

King World Productions Inc. also said Tuesday it is rewarding stockholders with a special dividend and the repurchase of about 13% of its common stock.

In addition, the television syndicator reported its earnings rose 4% in its second fiscal quarter, beating analysts’ expectations by a penny a share.

The developments sent King World stock up 62.5 cents at $36.875 a share in afternoon trading on the New York Stock Exchange.

King World has been involved in discussions with two prospective buyers over the past 2 1/2 years. In each case, the talks ended when the suitors were themselves acquired.

Turner Broadcasting Systems Inc. considered buying King World in 1995 but was itself acquired by Time Warner Inc. Ronald Perelman’s New World Communications Group Inc. discussed buying King World in 1996 before New World was acquired by Rupert Murdoch’s News Corp.

Steven LoCascio, the chief financial officer, said King World is no longer in active discussions about selling the company.

King World said its board had approved paying a special dividend of $2 a share, its first dividend since going public in 1984, and authorized buying back 5 million of its own common shares, or 13% of its total.

The dividend would cost $75 million and the buyback an additional $185 million at recent prices.