dmas 91, 102,108 & 158

Sinclair Buys Four Cox TVs For Nearly $100M

Sinclair is paying $99 million, less $4.3 million of working capital adjustments, for network affiliates in El Paso, Texas; Johnstown-Altoona, Pa.; Reno, Nev,; and Wheeling, W.Va.
By
TVNewsCheck,

Sinclair Broadcast Group on Monday said it is buying four TV stations in four markets from Cox Media Group for $99 million, less $4.3 million of working capital adjustments. As part of the deal, Sinclair is talking over Cox's duopoly partnership in one market.

Sinclair said it expects to finance the purchase, less $5 million in deposits, through a bank loan or by accessing the capital markets. It also said it expects the deal, which is subject to FCC approval, to close in the second quarter.

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The four stations Sinclair is buying.

  • KFOX (Fox) El Paso, Texas DMA 91
  • WJAC (NBC) Johnstown-Altoona, Pa. DMA 102
  • KRXI (Fox) Reno, Nev. DMA 108
Brand Connections
  • WTOV (NBC) Wheeling, W.Va.-Steubenville, Ohio DMA 158

Since FCC rules prohibit ownership of two stations in markets as small as Reno, Sinclair will follow Cox's lead and operate MNT affiliate KAME Reno under contract with a third-party licensee, Deerfield Media.

Cox announced last summer that it wanted to sell the four stations to “focus on larger markets, cross-media collaboration and heightened impact in fewer markets.” That announcement came after it had purchased duopolies in larger markets -- Jacksonville, Fla., and Tulsa, Okla. -- from Newport Television.

“Over the past 18 months, we have led the industry’s consolidation efforts in the mid-sized markets, purchasing 30 TV stations and creating over $400 million of equity value,” said David Smith, president-CEO of Sinclair. “We believe there are many more opportunities to acquire quality assets and to unlock hidden value, including in the smaller markets, such as where the CMG stations operate. We believe our platform size and leadership position allow us to bring meaningful purchasing power and negotiating leverage to these stations. Including synergies, we believe the CMG stations can generate approximately $20 million of cash flow, on average.”

Smith continued, “We have prided ourselves on being a forward-looking company with a history of creating innovative ways to unlock value for our shareholders. We have established Chesapeake TV as the primary operating entity for the Cox stations and other small market stations we may acquire, while STG will continue to be our primary operating entity for mid-sized market stations. We believe a dual operating structure is critical to the success of a small market strategy since the economics and competitive nature can differ from those of the mid-sized markets.”

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Comments (6) -

James Cieloha Nickname posted over 4 years ago
Sinclair ought enter a JSA/LMA/SSA with KDBC and move all of KDBC operations into KFOX studios completely away from KTSM with Deerfield Media running KDBC in El Paso, Texas and also buy KPTM with Deerfield running KXVO in Omaha, Nebraska, KPTH with Deerfield running KMEG in Sioux City, Iowa, KMPH and KFRE in Fresno, California, and Deerfield running WCWG in Greensboro, North Carolina to keep those stations alive. Sinclair may see KDNL getting CW in Saint Louis, and WXLV getting FOX and WCWG keeping CW in Greensboro-High Point while ABC moves to KTVI and FOX moves to KPLR in Saint Louis and FOX moves to KWGN and CW moves to KDVR in Denver with Tribune for KPLR and KWGN and Local TV LLC for KTVI and KDVR in a side deal unrelated to a Sinclair owned and or operated TV station.
James Cieloha Nickname posted over 4 years ago
Update: Sinclair ought enter a JSA/LMA/SSA with KDBC and move all of KDBC operations into KFOX studios completely away from KTSM with Deerfield Media running KDBC in El Paso, Texas and also buy KPTM with Deerfield running KXVO in Omaha, Nebraska, KPTH with Deerfield running KMEG in Sioux City, Iowa, KMPH and KFRE in Fresno, California, and Deerfield running WCWG in Greensboro, North Carolina to keep those stations alive. Chesapeake TV gets KPTM/KXVO, KPTH/KMEG, and KDBC and Sinclair gets KMPH/KFRE, and WCWG. Sinclair may see KDNL getting CW in Saint Louis, and WXLV getting FOX and WCWG keeping CW in Greensboro-High Point while ABC moves to WGHP in Greensboro-High Point, ABC moves to KTVI and FOX moves to KPLR in Saint Louis and FOX moves to KWGN and CW moves to KDVR in Denver with Tribune for KPLR and KWGN and Local TV LLC for WGHP, KTVI and KDVR in a side deal unrelated to a Sinclair owned and or operated TV station. Sinclair ought to send KABB in San Antonio, and WMYV in Greensboro-High Point over to Cunningham while sending WSMH to Deerfield Media. I would favor Nexstar/Mission grabbing WPMI/WJTC, WHP/WLYH, WSYT/WNYS, WYZZ, KRCG, KHQA, KTVO, and KBTV from Sinclair with Sinclair grabbing KLRT/KASN, and WUHF from Nexstar/Mission. I would favor Raycom/American Spirit Media grabbing WFXL. I would favor London Broadcasting grabbing KGBT, and KVII/KVHI. I would favor Gannett buying WTTA to merge with WTSP, WUCW to merge with KARE, and KDNL to merge with KSDK.
mavtv r posted over 4 years ago
In the case of Johnstown-Altoona, Pa and Wheeling, W.Va.-Steubenville, Ohio they go from being a sister station of WPXI-TV (NBC) Pittsburgh to being a sister station of WPGH-TV (FOX) and WPMY-TV (MY Network TV) Pittsburgh. Also CMG's WPXI produces a 10 pm news for Sinclair's WPGH so I wonder if somehow some way WTOV or WJAC could move some or all of it's news resources to Pittsburgh and sinclair produces it own newscast instead of out sourcing it to CMG as both Wheeling and Johnstown are only 60 miles for Pittsburgh.
tjxx Nickname posted over 4 years ago
God help those good people from COX
UnsignedSuit Nickname posted over 4 years ago
thxx, you got that so right! Especially the ones at WTOV who experienced Rust Craft...
Thomas Scanlan posted over 4 years ago
tjxx, Bingo!! Cox runs quality stations, staffing is more than adequate, and people are well paid and valued. Now its going to Sinclair?? The poor people at the Cox stations should call one of Phil Lombardo's stations, IF any of the former Phil-owned station's staff managed not to get brainwashed, tortured, or killed!!
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Ratings

Overnights, adults 18-49 for September 27, 2016
  • 1.
    3.0/11
  • 2.
    1.8/6
  • 3.
    1.2/4
  • 4.
    0.9/3
  • 5.
    0.6/2
  • 6.
    0.2/1
Source: Nielsen

Reviews

  • Rob Owen

    Easily fall’s best broadcast network comedy pilot, NBC’s The Good Place offers a clever high-concept premise that’s complemented with intelligent, sometimes absurdist humor. Created by Michael Schur, co-creator of NBC’s Parks and Recreation, The Good Place is a highly serialized series that’s essentially set in heaven and stars Kristen Bell and Ted Danson. NBC made five episodes of The Good Place available for review, and the show not only holds up, but also it improves, deepening characters that initially feel one-note and frequently leaving viewers guessing with cliffhanger endings to many of the episodes. The combination of snappy dialogue and winning but flawed characters makes The Good Place a great bet for fans of smart TV comedy.

  • Maureen Ryan

    Pitch has swagger, for good reason. It gets the big things right; the Fox drama about the first female baseball player in the Major Leagues is one of the year’s most assured and exciting debuts. But part of what impresses about the pilot is also the way it confidently strings together so many small but telling details. Ginny (Kylie Bunbury) is the first woman to be called up from the minors to the big leagues, and no show since Friday Night Lights has done a better job of portraying the internal and external pressures that weigh heavily on young athletes asked to do much more than merely succeed on the field. Pitch will likely do a good job of getting viewers to root for it. The hope is that the show won’t be an impressive, short-lived curiosity, but rather a long-term phenomenon.

  • Kevin Fallon

    In a fall TV season that’s already making a splash for championing diverse, distinctive voices in an array of projects that they created, wrote, and starred in, Better Things on FX stands out. The show is created by, written by, and starsPamela Adlon. She plays Sam Fox, the single mother of three daughters modeled after her own reality-show-ready experience raising three girls in Los Angeles following a divorce. Sam is also, like Adlon, a working actress — on shows both raunchy, a la Californication, and animated for children, like her role on Recess. It’s a refreshingly blunt take on single motherhood without sacrificing the warmth of parental love, portraying the dance between selfishness and selflessness that’s at the heart of being a parent — especially one weathering the hormonal fireworks of a household of four women at different ages.

  • David Wiegand

    The fall TV season doesn’t count as much as it used to — we already know that. But no matter how many retreads the broadcast networks throw at viewers in the next few months, this fall will be memorable because of the premiere of Atlanta on Tuesday, Sept. 6, on FX. The half-hour comedy created by and starring Donald Glover (Community), simply and brilliantly recalibrates our expectations of what a TV comedy is and how black lives are portrayed on the medium.

  • Louisa Ada Seltzer

    The second reboot of the 1980s John Candy movie Uncle Buck, bumped by ABC from midseason, has the same tired jokes you'll find on any second-rate sitcom. Too bad, because Mike Epps is appealing and ABC would be wise to keep him around for future shows, but there’s just not enough to this show to suggest it will last past summer. It also airs against NBC’s America’s Got Talent, summer’s No. 1 program on broadcast, which may make it even harder to find an audience.

  • Neil Genzlinger

    Bryan Cranston brings his Tony Award-winning interpretation of President Lyndon B. Johnson to television in an adaptation of the Robert Schenkkan play All the Way, and it’s still quite a sight to behold, just as it was on Broadway in 2014. Nothing beats witnessing this kind of larger-than-life portrayal onstage, of course. But the television version, presented by HBO, offers plenty of rewards, allowing Cranston to work the close-ups and liberating him from the confines of a theater set. Cranston’s performance is a gem — in his hands, this accidental president comes across as an amazing bundle of contradictions, someone who seems at once too vulgar for the job and just right for it.

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