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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 March 11, 2014 07:30 GMT
BANGKOK (AP) -- Asian stock markets steadied today after a sharp sell-off the day before.
There was a dearth of corporate or economic news for traders to digest and an insipid performance on Wall Street gave little direction either.
Most indexes were modestly higher after declining Monday on weak Chinese trade figures that reignited fears of a deeper slowdown in the world's No. 2 economy.
Benchmark U.S. crude oil rose slightly, remaining at just above $101 a barrel.
The dollar gained against the euro and fell against the yen.
ECONOMY-THE DAY AHEAD
WASHINGTON (AP) -- Inventories and jobs news are the subjects of today's government economic data.
The Commerce Department releases its report on wholesale trade inventories for January this morning. December's report showed businesses increased stockpiles at the slowest pace since last summer. The 0.5 percent December increase followed healthy gains of 1 percent in November and 1.1 percent in October.
Also this morning, the Labor Department releases its job openings and labor turnover survey for January.
MILWAUKEE (AP) -- The job outlook is looking up for the second quarter.
ManpowerGroup's quarterly Manpower Employment Outlook Survey of employers' intentions to increase or trim back their workforce found a net increase of 13 percent.
The workforce solutions company says 19 percent of the more than 18,000 employers surveyed anticipate increasing staff levels. ManpowerGroup's Chris Layden says it's "the strongest second-quarter hiring intention since the second quarter of 2008." And Layden says expected staff reductions of four percent were the lowest in the survey's history.
Layden says the survey found a positive outlook in all 13 industry sectors, especially engineering and technology. He says the survey found that "95 percent of employers were having difficulty finding engineers."
According to Layden, the survey shows nationwide growth and "points to a little steadier job market."
BEIJING (AP) -- China's central bank governor has said Beijing might finish the process of easing controls on interest rates within two years and market forces will set the pace for use of its tightly controlled currency abroad.
Zhou Xiaochuan spoke at a news conference during the annual meeting of China's legislature, at which communist leaders have announced plans to make the economy more market-oriented and productive.
The central banker said ending controls on rates paid by banks to savers would be the last step in easing interest rate controls. He said he expects that to come in one to two years.
Zhou said the central bank wants market forces to determine the pace at which China's yuan is used for international trade and investment.
LEGALIZING MARIJUANA-FIRST TAXES
DENVER (AP) -- In the world's first accounting of a recreational pot industry, Colorado officials say the state has made roughly $2 million in marijuana taxes in January, the first month of sales.
The tax total reported Monday by the state Department of Revenue indicates $14.02 million worth of recreational pot was sold. The state collected roughly $2.01 million in taxes.
The state legalized pot in 2012, but the commercial sale of marijuana didn't begin until January. Washington state sales begin in the coming months.
The taxes come from 12.9 percent sales taxes and 15 percent excise taxes. Voters approved the pot taxes last year. The first $40 million of the excise tax must go to school construction.
Colorado has about 160 state-licensed recreational marijuana stores, though not all were open in January.
DALLAS (AP) -- The Mt. Gox bitcoin exchange that recently collapsed in Japan has filed for U.S. bankruptcy protection to shield itself from a lawsuit seeking to repay thousands of people whose digital currency is now missing.
The U.S. filing made in Dallas late Sunday supplements a bankruptcy petition that Mt. Gox submitted in Japan at the end of last month.
Mt. Gox was once the world's largest exchange specializing in bitcoins, but now finds itself in a financial mess after losing about 850,000 bitcoins valued at $473 million, according to court documents.
Although it's based in Tokyo, Mt. Gox is opening a bankruptcy case in the U.S. in an attempt to delay a recent federal lawsuit filed in Illinois on behalf of all U.S. residents burned by the exchange's abrupt demise.
NEW YORK (AP) -- Chemicals maker DuPont says its first-quarter results could be hurt by extended cold weather and winter storms in North America and turmoil in Ukraine.
DuPont also says uncertain farming conditions may affect its results. The company did not quantify the effect of those factors.
FactSet says analysts expect DuPont & Co. to earn $1.68 per share in the first quarter.
For the full year, DuPont says those factors will be canceled out by greater global industrial production, lower agricultural expenses, and the execution of its business plan. The Wilmington, Del., company is still forecasting adjusted income of $4.20 to $4.45 per share.
Analysts expect $4.33 per share, on average.
Shares of DuPont rose 11 cents to $67.35 on Monday, then slipped 69 cents in after-hours trading.
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