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NewsChannel 9 Owners Buy Allbritton Stations
Sinclair Broadcast Group, Inc. (Nasdaq: SBGI), the corporate owner of WTVC NewsChannel 9, has entered into an agreement to purchase the stock of Perpetual Corporation and the equity interest of Charleston Television, LLC, both owned and controlled by the Allbritton family (“Allbritton”), for $985 million.
The Allbritton stations consist of seven ABC Network affiliates, covering 4.9% of the U.S. TV households, and NewsChannel 8, a 24-hour cable/satellite news network covering the Washington D.C. metropolitan area. Completion of the transaction is subject to the satisfaction of customary closing conditions, including approval by the Federal Communications Commission (“FCC”) and antitrust clearance, as applicable. The Company anticipates that the transaction will close and fund in the fourth quarter of 2013, subject to the satisfaction of the closing conditions.
To comply with FCC local television ownership rules, Sinclair expects to sell the license and certain related assets of its existing stations in Birmingham, AL - WABM (MNT) and WTTO (CW), Harrisburg/Lancaster/Lebanon/York, PA - WHP (CBS), and Charleston, SC - WMMP (MNT) and to provide sales and other non-programming support services to each of these stations pursuant to customary shared services and joint sales agreements.
The Allbritton stations to be owned and operated are:
WJLA ABC Washington, DC
WBMA ABC Birmingham/Tuscaloosa/Anniston, AL
WCFT ABC Birmingham/Tuscaloosa/Anniston, AL
WJSU ABC Birmingham/Tuscaloosa/Anniston, AL
WHTM ABC Harrisburg/Lancaster/Lebanon/York, PA
KATV ABC Little Rock/Pine Bluff, AR
KTUL ABC Tulsa, OK
WSET ABC Roanoke/Lynchburg, VA
WCIV ABC Charleston, SC
In addition, the Company will acquire Allbritton’s NewsChannel 8, the region’s only 24-hour local cable/satellite news network dedicated to covering news, weather, sports and local information to over 2 million households in the Washington D.C. metropolitan area.
“We are thrilled to add the Allbritton properties to our growing portfolio and national footprint,” commented David Smith, President and CEO of Sinclair. “To buy a full-blown news operation in our nation’s capital and an infrastructure that allows us to be connected to our branches of government and be at the pulse of national issues is a once-in-a lifetime event. We are especially excited to acquire the NewsChannel 8 local news channel, not only for the content it can provide our existing news stations, but moreover because their regional cable presence provides the perfect platform should we decide to expand it into other markets, especially given the amount of local news we produce across our entire portfolio.”
Monday, July 29 2013, 10:02 AM EDT
Including the Allbritton station acquisitions, all previously announced acquisitions, and pro forma for expected synergies, the Company’s 2011 and 2012 net broadcast revenues would have been $1.609 billion and $1.865 billion, respectively. The $985.0 million purchase price represents an 8.7x multiple of the average 2011-2012 cash flow including $21.5 million of operating synergies, which excludes any synergies associated with rolling out a national news cable channel. At an 8.5x enterprise to cash flow multiple, the additional synergies create approximately $1.83 of added equity value.
More Business News
Last Update on October 20, 2014 07:27 GMT
WASHINGTON (AP) -- A new business survey finds hiring is healthy but pay raises, not so much.
The quarterly survey by the National Association for Business Economics finds that only 24 percent of companies increased wages and salaries in the July-September quarter. That's down from 43 percent in the April-June quarter and the first drop after three straight increases.
Yet the firms still added jobs at a healthy pace, which usually pushes wages higher as employers compete for workers. The figures suggest that the number of people out of work remains high enough that companies aren't under any pressure to raise pay.
And just one-third of respondents said they expect their companies will boost wages in the October-December quarter.
The NABE surveyed 76 of its member economists in late September
ECONOMY-THE DAY AHEAD
UNDATED (AP) -- Investors will have many more corporate earnings reports to look at this week.
Apple will report third quarter financial results today after the market closes.
Tomorrow, Coca-Cola, Reynolds American, Verizon Communications and McDonald's will report earnings before the market opens. Discover Financial Services and Yahoo will report results after the closing bell.
Also on Tuesday, the National Association of Realtors will release existing home sales for September.
OVERLAND PARK, Kan. (AP) -- Sprint Corp. has cut 452 jobs from its Overland Park, Kansas, headquarters as part of a previously announced cost-cutting effort.
The nation's third-biggest cellphone carrier disclosed the layoffs in a filing with the Kansas Department of Commerce.
The report, which was filed Friday, covers the first installment of layoffs planned throughout October. The Kansas City Star reports that it doesn't cover any job losses outside the headquarters campus, although they are believed to be happening too.
The company said earlier this month in a filing with the Securities and Exchange Commission that it was cutting an unspecified number of jobs to better compete with AT&T and Verizon. Sprint said it would book a $160 million charge in its fiscal second quarter to cover the layoffs, which include managers as well as other employees. It may take more charges for future job cuts.
Another 477 Sprint employees in Overland Park were laid off earlier this year, bringing this year's job cut total to 929
Before the newly disclosed layoffs, about 7,500 worked for Sprint in the Kansas City area.
LOS ANGELES (AP) -- The bloody World War II drama "Fury" blew past "Gone Girl" at theaters this weekend.
"Gone Girl" was tops at the box office for two weeks before Brad Pitt and his rag-tag group of tank mates in "Fury" blasted the film to second place.
According to studio estimates Sunday, Sony's "Fury" captured $23.5 million in ticket sales during its opening weekend. Fox's "Gone Girl" followed with $17.8 million.
Two other new movies landed in the top five: The animated Fox feature "The Book of Life" opened in third place with $17 million; and Relativity's Nicholas Sparks romance "The Best of Me" debuted in fifth place with $10.2 million.
Disney's "Alexander and the Terrible, Horrible, No Good, Very Bad Day" placed fourth, dropping one spot since opening last weekend.
JAPAN-TRADE MINISTER RESIGNS
TOKYO (AP) -- Japan's trade minister has announced her resignation after allegations that she violated election laws.
Yuko Obuchi's resignation on Monday is the first for the current administration of Prime Minister Shinzo Abe and could dent his efforts to raise the profile of women both in politics and business.
The questions over Obuchi's use of election funds are the latest in a series of uproars over activities by some members of Abe's Cabinet. Obuchi is one of five women Abe appointed to Cabinet-level posts in a reshuffle last month that highlighted his commitment to promoting women to leadership positions.
BERLIN (AP) -- Germany's finance minister says he's confident he can keep promises to balance the budget next year and is rejecting anew suggestions that the country should borrow to finance greater public investment.
Chancellor Angela Merkel is determined to stick to plans to get by without new borrowing next year for the first time since 1969, though Germany's growth outlook has weakened and Berlin faces calls from abroad to pump money into the economy.
Finance Minister Wolfgang Schaeuble acknowledged in Sunday's Welt am Sonntag newspaper that Germany "must invest more and improve our competitiveness." But he added: "We just don't want growth on credit."
Schaeuble said it's important to keep to promises and says he's confident a balanced budget can be achieved because "tax income doesn't react so quickly to economic changes."
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