Cars.com Inc. and media company Tronc Inc. said on Tuesday that they’ve agreed to a deal to convert Tronc’s eight affiliate markets, including Los Angeles and Chicago, into Cars.com’s direct retail channel. Los Angeles and Chicago are two of the nation’s top markets for new car sales. Cars.com said in a news release that Tronc represents 37% of Cars.com’s wholesale revenue. The agreement, which will see more than 2,000 car deal customers move to Cars.com, will take effect Feb. 1. Tronc’s sales and support teams will also join Cars.com to help with the transition. The deal also includes a multi-year advertising and marketing agreement between Cars.com and Tronc. “This mutually beneficial new agreement with Cars.com is expected to improve our bottom line and allow us to pursue other strategic initiatives,” Tronc Chief Executive Justin Dearborn said in a statement. Shares of Tronc are up 59% in the last 12 months, while the S&P 500 index is up more than 25% and the Dow Jones Industrial Average is up more than 32%. Cars.com went public in June 2017 after spinning off from Tenga Inc. . Shares are up 24% in the last three months.
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