Gannett Co. Inc., best known as the owner of USA Today, announced yesterday it plans to acquire KXTV-Channel 10 in Sacramento by swapping it for a station in Austin, Texas.

Gannett will take over Channel 10 from Dallas-based A.H. Belo Corp., which has owned KXTV for 15 years.

The deal had been rumored all week. But the part that surprised employees at KXTV was the price.

Belo agreed to give Gannett its Sacramento television station, plus up to $55 million in cash for KVUE-TV in Austin.

"That shocked us because Sacramento is the 20th-largest media market and Austin is much smaller," said a KXTV employee, asking not to be identified. "But I guess Austin has tremendous cash flow."

Austin is the nation's 63rd-largest media market. Channel 10 serves the media market of Sacramento-Stockton-Modesto, which is ranked 20th.

Belo wanted...