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NewsChannel 9 Owners Buy Six More TV Stations
Sinclair Broadcast Group, Inc. (Nasdaq: SBGI), the owner of WTVC-TV NewsChannel 9, announced Thursday that it has entered into a definitive agreement to purchase the broadcast assets of six television stations owned and/or operated by Newport Television for $412.5 million.
The six stations are located in five markets and reach 3.0% of the U.S. TV households. The transaction is subject to approval by the Federal Communications Commission (“FCC”), and antitrust clearance. The Company anticipates the closing and funding of the acquisition to occur no earlier than December 2012, subject to closing conditions. Upon closing, the Company expects to finance the $412.5 million purchase price, less a $41.25million deposit, through cash on hand along with a bank loan and/or by accessing the capital markets.
“In the past year, we have announced the acquisition of 23 television stations, representing the addition of almost $1 billion in assets,” commented David Smith, President and CEO of Sinclair. “The Newport stations acquisition is consistent with our focus of adding “big four” affiliates in mid-sized markets and strengthening our in-market positions. Assuming our ability to create synergistic opportunities and given current market conditions, we believe the stations will be free cash flow accretive and add approximately $55.0 to $60.0 million of pro forma TV operating cash flow, on average, for 2012/2013. We are excited to add the stations to our portfolio and look forward to welcoming the Newport employees to the Sinclair family.”
The stations to be acquired are:
-- WKRC (CBS 12) Cincinnati, Ohio (DMA 35)
-- WOAI (NBC 48) San Antonio, Texas (DMA 36)
-- WHP (CBS 21) Harrisburg/Lancaster/Lebanon/York, Pennsylvania (DMA 41)
-- WPMI (NBC 15) and WJTC (IND 45) Mobile, Alabama/Pensacola, Florida (DMA 60)
-- KSAS (FOX 26) Wichita/Hutchinson, Kansas (DMA 67)
Sinclair will also acquire Newport’s rights under the local marketing agreements with WLYH (CW 23) in Harrisburg, PA and KMTW (MNT 35) in Wichita, KS, as well as options to acquire the license assets.
The Company has also entered into agreements with Deerfield Media, Inc. to sell Deerfield the license assets of one of Sinclair’s stations in San Antonio (KMYS CW), and Sinclair’s station in Cincinnati (WSTR MY), subject to FOX Television Stations purchase option with respect to WSTR which expires March 31, 2013, and to assign Deerfield the right to buy the license assets of WPMI and WJTC in the Mobile/Pensacola market, after which the Company will provide sales and other non-programming services to each of these four stations pursuant to shared services and joint sales agreements.
Newport also broadcasts several secondary channels, including CW and MNT, among others, which will also be acquired as part of this transaction.
Separately, the Company announced that it entered into an agreement to purchase the assets of Bay Television, Inc. (Bay TV), which owns WTTA-TV (MNT) in the Tampa/St. Petersburg, Florida market, for $40 million.
Bay TV is owned primarily by our controlling shareholders. Since 1998, Sinclair has operated WTTA pursuant to a local marketing agreement, which will be terminated upon closing. As this transaction is between entities under common control, a fairness opinion was obtained by Sinclair’s Board of Directors. The transaction is expected to close in the fourth quarter of 2012, subject to approval of the FCC.
More Business News
Last Update on October 22, 2014 17:29 GMT
WASHINGTON (AP) -- U.S. consumer prices edged up slightly in September, with the overall increase held back by a third straight monthly decline in gasoline prices. The tiny gain was the latest evidence that inflation remains dormant.
The Labor Department says consumer prices rose 0.1 percent in September after having falling 0.2 percent in August. Core prices, which exclude volatile food and energy, also rose 0.1 percent after no gain in August.
Over the past 12 months, overall prices are up 1.7 percent and core prices are up a similar 1.7 percent. Both increases are well below the 2 percent target for inflation set by the Federal Reserve. The absence of inflationary pressures has allowed the central bank to keep interest rates at record lows to boost the economy.
WASHINGTON (AP) -- The government says millions of older Americans who rely on federal benefits will get a 1.7 percent increase in their monthly payments next year.
It's the third year in a row the increase will be less than 2 percent.
The annual cost-of-living adjustment affects payments for more than 70 million Social Security recipients, disabled veterans and federal retirees.
The government announced the increase Wednesday, when it released the latest measure of consumer prices. By law, the increase is based on inflation, which is well below historical averages so far this year.
Congress enacted automatic increases for Social Security beneficiaries in 1975. Until recently, the increases were rarely less than 2 percent.
AIR BAG RECALL
DETROIT (AP) -- The U.S. government is adding more than 3 million vehicles to a rare warning about faulty air bags that have the potential to kill or injure drivers or passengers in a crash.
The National Highway Traffic Safety Administration on Wednesday put out a new list of vehicles, increasing the number from 4.7 million to 7.8 million. The agency urged people to get their cars repaired if they're being recalled, especially in Florida and along the Gulf Coast.
The air bag inflators made by parts supplier Takata can rupture, causing metal fragments to fly out when the bags are inflated. Safety advocates say at least four people have died from the problem.
The warning covers many models from BMW, Chrysler, Ford, General Motors, Mazda, Honda, Mitsubishi, Nissan, Subaru and Toyota.
WASHINGTON (AP) -- Federal health officials are significantly expanding the breadth of vigilance for Ebola, saying that all travelers who come into the U.S. from Ebola-stricken West African nations will now be monitored for symptoms of illness for 21 days.
The director of the Centers for Disease Control and Prevention says the program will begin Monday and cover visitors as well as aid workers, journalists and other Americans returning from Liberia, Sierra Leone or Guinea.
The program will start in six states: New York, Pennsylvania, Maryland, Virginia, New Jersey and Georgia.
CDC Director Tom Frieden says state and local health officials will check daily for fever or other Ebola symptoms.
Passengers will get kits to help them track their temperature and will be told to inform health officials daily of their status.
J&J to spend up to $200M on Ebola vaccine program
NEW BRUNSWICK, N.J. (AP) -- Johnson & Johnson will start safety testing in early January on a vaccine combination that could protect people from a strain of the deadly Ebola virus.
The health care products maker says it has committed up to $200 million to speed up and expand production of a vaccine program being developed by its Janssen Pharmaceutical Companies.
J&J is developing the vaccine with the Danish biotech company Bavarian Nordic. It involves a regimen in which two vaccines are delivered two months apart. The combination provided complete protection in animals against a virus strain similar to the one causing the current outbreak in West Africa that has killed thousands of people.
The New Brunswick, New Jersey, company says it will also determine whether its vaccine protects against the version causing the outbreak.
MORTGAGE RISK RULES
WASHINGTON (AP) -- Federal regulators are proceeding with new rules that ease guidelines for banks selling mortgage securities and could mean fewer borrowers will need to make hefty down payments.
The Securities and Exchange Commission voted 3-2 Wednesday to adopt the rules, which six federal agencies have been working on since 2011. Three other agencies adopted the rules Tuesday, and the Federal Reserve has scheduled a vote for Wednesday afternoon.
The rules govern the amount of risk banks must take on when they package and sell mortgage securities in a multitrillion-dollar market. In the final rules, the regulators have dropped a key requirement: a 20-percent down payment from the borrower if a bank didn't hold at least 5 percent of the mortgage securities tied to those loans on its books.
MINI-OVERSTATED GAS MILEAGE
DETROIT (AP) -- The U.S. government has told BMW to reduce the gas mileage estimates on window stickers of four Mini Cooper models.
Testing by the Environmental Protection Agency lab in Ann Arbor, Michigan, discovered the overstated mileage.
The vehicles affected are the 2014 Mini Cooper three-door and Mini Cooper three-door S models with manual and automatic transmissions. BMW must cut the highway mileage by one-to-four miles per gallon depending on the model. Estimates for city driving and combined city and highway fuel economy also must be reduced.
The EPA says it audited the Mini gas mileage and came up with lower values than BMW, which makes the cars. It's the fourth time in the past two years that the EPA has found discrepancies in the gas mileage estimates provided by an automaker.
NEW YORK (AP) -- A new study confirms what many Internet users know all too well: Harassment is a common part of online life.
The report by the Pew Research Center found that nearly three-quarters of American adults who use the Internet have witnessed online harassment. Forty percent have experienced it themselves.
The types of harassment Pew asked about range from name-calling to physical threats, sexual harassment and stalking. Half of those who were harassed said they didn't know the person who had most recently attacked them.
Young adults -- people 18 to 29 -- were the most likely age group to see and undergo online harassment.
The survey was conducted between May 30 and June 30 among 3,217 respondents.
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