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.
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Last Update on November 26, 2014 08:35 GMT
ECONOMY-THE DAY AHEAD
WASHINGTON (AP) -- The list of economic reports expected this morning is longer than usual with everything shutdown for Thanksgiving tomorrow.
The Commerce Department releases October figures on durable goods orders, personal income and spending as well as new home sales. The National Association of Realtors will release its pending home sales index for October, while Freddie Mac issues its weekly report on mortgage rates.
The Labor Department's weekly look at jobless claims also comes a day early.
From the corporate world, Deere & Co. reports its quarterly financial results before the market opens.
WASHINGTON (AP) -- The Obama administration will propose tightening the amount of a smog-forming pollutant in the air.
People familiar with the proposal tell the Associated Press that the EPA will recommend lowering the limit for ground-level ozone to 65 to 70 parts per billion, down from a 75 parts per billion standard set in the 2008.
The proposal will be announced today to meet a court-ordered Dec. 1 deadline.
The stricter standard makes good a campaign promise Obama made during his first run for the White House: to reverse President George W. Bush's decision to set a limit weaker than scientists advised.
In 2011, facing re-election, Obama scrapped an EPA plan to tighten the standard after Republicans and industries said it would hamper the economy.
SAN FRANCISCO (AP) -- Venerable tech giant Hewlett-Packard has been struggling for three years to turn its business around. Its latest earnings show it still has more work ahead.
While CEO Meg Whitman has decided to split the company in two, she has said it will take a year to disengage the sluggish printer-and-PC division from faster-growing units that sell commercial tech hardware, software and services. Meanwhile, HP reported Tuesday that its sales fell 2 percent in the most recent three-month period, marking its 12th revenue decline in the last 13 quarters.
And there was little comfort in a new forecast issued Tuesday by market research firm IDC. It predicts the global PC market will shrink 2.7 percent this year, instead of the 3.7 percent drop forecast earlier.
NEW YORK (AP) -- Twitter is expanding its reach into commerce with a new tool called "Offers."
Advertisers can post promotions and discounts in users' Twitter feeds, whether or not Twitter users follow those merchants.
To redeem an offer, customers enter their credit or debit card information. They can use the same card to redeem the promotion in a store. It only works in the U.S. but may be available in other countries in the future.
San Francisco-based Twitter says it will encrypt and store the credit card information but users can remove it any time
The short messaging service has slowly been branching out into shopping. It launched a "Buy" button in September that lets users make purchases or donate money to charities without leaving Twitter.
THANKSGIVING AT WORK
COLUMBUS, Ohio (AP) -- A lawmaker in Ohio wants retailers in the state to pay triple wages for employees who work on Thanksgiving -- an effort that comes as Macy's is allowing its workers to choose whether to work that day.
Both are attempts to counter frustration among workers and their families over holiday store hours that have expanded into the holiday.
State Rep. Mike Foley says his bill would allow employees to bow out of the holiday shift without sanctions. It comes after a federal complaint said Wal-Mart illegally fired workers protesting holiday working conditions last year.
Macy's, Wal-Mart and two dozen other major retailers open on Thanksgiving Day say consumers demand it. A spokesman says working the holiday is optional for Macy's employees this year. Those who work will be paid time-and-a-half.
WASHINGTON (AP) -- HSBC will pay $12.5 million to settle regulators' charges that its private-banking business based in Switzerland violated U.S. securities laws.
The Securities and Exchange Commission said Tuesday that the private-banking unit failed to register with the SEC before providing brokerage services and investment advice to U.S. clients. The SEC says HSBC Private Bank began doing so more than 10 years ago and collected fees totaling about $5.7 million.
A representative for HSBC, Europe's largest bank by market value, could not be reached for comment.
According to the SEC, HSBC Private Bank decided to exit the U.S. cross-border business in 2010.
DES MOINES, Iowa (AP) -- The egg is on a roll. It has never been more popular as a fast-food restaurant breakfast staple and its appeal has broadened far beyond the day's first meal.
High demand has kept egg prices at record levels, even as production soars.
The U.S. Department of Agriculture says Iowa, the nation's leading egg supplier, produced a record 1.4 billion eggs in October, up 4 percent from a year ago. Egg prices have broken records for the past 10 days, with the Midwest price reaching $2.18 a dozen on Monday.
Restaurants have broadened their menu offerings including eggs, with quick-service restaurants adding more egg-white sandwiches and eggs showing up as toppings on pizza and hamburgers.
People also use more eggs around the holidays as families cook and bake at home.
COAL LEASE LAWSUIT
BILLINGS, Mont. (AP) -- Conservation groups are suing the government to force federal officials to undertake the first broad environmental review of the government's coal-leasing program in decades.
Friends of the Earth and the Western Organization of Resource Councils filed the lawsuit Tuesday in U.S. District Court in Washington, D.C.
It's being paid for by the philanthropic foundation of Microsoft founder Paul Allen.
Supporters of the lawsuit said there hasn't been a comprehensive review of the government's coal program since 1979. That's before climate-changing gases produced by burning coal emerged as a significant public concern.
The U.S. Bureau of Land Management has been reviewing its coal-leasing program since a government investigation last year revealed officials accepted below-market bids in some coal sales.
BLM spokesman Jeff Krauss declined to comment on Tuesday's lawsuit.
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