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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 April 21, 2014 07:28 GMT
BEIJING (AP) -- Asian stocks were mixed today in light trading after Japan reported a jump in its trade deficit and investors looked ahead to economic data this week from China and Korea.
Investors are waiting for the preliminary version of HSBC Corp.'s survey of Chinese manufacturing due out Wednesday for signs of whether an economic slowdown has bottomed out.
Benchmark crude oil fell but remained above $104 a barrel. The dollar gained against the yen and was flat against the euro.
ECONOMY-THE DAY AHEAD
Business events and economic reports scheduled for the coming week
WASHINGTON -- There's only one major economic report due out today. It's the leading indicators for March from the Conference Board.
On Tuesday and Wednesday, housing will be the focus of two reports. The National Association of Realtors will release existing home sales for March tomorrow. And on Wednesday, the Commerce Department will release new home sales for March.
The government will report the weekly jobless claims on Thursday. Also, the Commerce Department will release the durable goods numbers for March. And Freddie Mac will report weekly mortgage rates.
NEW YORK (AP) -- A quarterly survey from the National Association of Business Economics finds that rising costs for materials and labor appear to be pressuring businesses.
During the first quarter of the year, 31 percent of businesses surveyed reported higher material costs. That's more than double the 15 percent that saw costs rise in the previous survey. Thirty-five percent of respondents reported rising wages and salaries at their businesses in the past three months, up from 23 percent in January.
Yet those who said they raised the prices they charge in the past three months remained unchanged at 20 percent.
The survey of 72 members was conducted between March 18 and April 1.
The survey findings say it appears businesses weren't able to "pass on costs increases, resulting in increased pressure on margins."
UNDATED (AP) -- Providence, R.I. is suing dozens of Wall Street banks and other financial companies over high-frequency trading.
The suit says stock exchanges, investment banks and others defrauded investors by manipulating market data in favor of split-second stock-trading firms.
The suit's defendants include the Nasdaq Stock Market and the New York Stock Exchange; major banks such as JPMorgan Chase, Goldman Sachs and Citigroup; and trading firms including Chopper Trading and Jump Trading.
The lawsuit comes amid heightened government scrutiny into whether advantages in computer hardware and placement enable some to get millisecond timing advances on trades.
The federal complaint was filed Friday in New York on behalf of investors who traded stocks in the U.S. since April 18, 2009.
GENERAL MILLS-LEGAL TERMS
NEW YORK (AP) -- General Mills is scrapping a controversial plan to strip consumers of their right to sue the food company.
The company, which owns Cheerios, Progresso and Yoplait, had posted a notice on its website notifying visitors that using the company's websites or engaging with it online in a variety of other ways meant they would have to give up their right to sue.
The Minnesota-based company said that people instead would have to resolve disputes through informal negotiation or arbitration.
The change was widely denounced on social media after The New York Times first reported it Wednesday. General Mills said in a statement emailed to media outlets late Saturday that it would revert back to its previous legal terms.
TOKYO (AP) -- Japan's trade deficit surged nearly 70 percent to a record 13.75 trillion yen ($134 billion) in the last fiscal year as exports failed to keep pace with surging costs for imported oil and gas.
The Finance Ministry reported Monday that exports in the year that ended March 31 rose 10.8 percent over the year before to 70.8 trillion yen ($690.5 billion) while imports climbed 17.3 percent to 84.6 trillion yen ($825 billion).
Resource-scarce Japan's costs for imports of energy have soared since the March 2011 disaster at the Fukushima Dai-Ichi Nuclear Plant led to the closures of all of its nuclear reactors for safety checks.
Meanwhile, a weakening of the Japanese yen last year further pushed costs for all imports higher, while exports have risen only modestly.
BEIJING (AP) -- Global and Chinese automakers are looking to the Beijing auto show to help boost sales in a slowing, intensely competitive market.
Brands from General Motors Co. to Chinese SUV maker Great Wall Motors are unveiling new and restyled sedans, sport utility vehicles and other models at Auto China 2014 this week.
China is the world's biggest auto market, with 17.9 million vehicles sold last year. But sales growth is forecast to slow from last year's 15.7 percent to 8 to 10 percent this year. And competition is intense, with global automakers jostling with 25 local brands for sales.
Ambitious domestic brands such as Chery Ltd. are losing ground to foreign rivals. Sales by Chinese independent brands shrank 2.6 percent from a year earlier in the first quarter.
WASHINGTON (AP) -- The State Department is giving federal agencies more time to review the Keystone XL pipeline before deciding whether to issue a permit.
That could push a decision about the controversial oil pipeline until after the midterm elections in November.
The State Department is citing a recent decision by a Nebraska judge that overturned a state law that allowed the pipeline's path through the state. The State Department says that created uncertainty and ongoing litigation.
The government is not saying how much longer the review will take. But it says the process isn't starting over.
The pipeline has become a politically fraught issue. Republicans criticize President Barack Obama for taking too long to decide. The State Department has jurisdiction because the pipeline would cross the border between the U.S. and Canada.
WASHINGTON (AP) -- A study paid for by the federal government says biofuels made from the leftovers of harvested corn plants are worse than gasoline for global warming in the short term.
The research published in the journal Nature Climate Change challenges the Obama administration's conclusions that biofuels are a much cleaner oil alternative and will help fight climate change.
The study is being criticized by the biofuels industry and Obama administration as flawed.
Corn residue is one of the most promising ways to make cellulosic biofuels. Biofuels have struggled to reach the volumes required by law.
The administration and biofuel supporters claim biofuels are better for the environment than are gasoline and corn ethanol.
A 2007 law requires that they release 60 percent less carbon than gas to qualify as renewable fuel.
DETROIT (AP) -- Government documents show that General Motors waited years to recall nearly 335,000 Saturn Ions for power steering failures despite getting thousands of consumer complaints and warranty repair claims.
Additionally, the National Highway Traffic Safety Administration didn't seek a recall of the 2004-2007 compact cars even though it opened an investigation more than two years ago. The government's auto safety watchdog found the problem caused 12 crashes and two injuries.
The documents, posted on the NHTSA's website Saturday, show yet another delay by GM in recalling unsafe vehicles. It's also another example of government regulators reacting slowly to a safety problem despite being alerted by consumers and the company's warranty data.
GM and NHTSA were criticized for their response to a deadly ignition-switch problem in more than 2.6 million small cars.
NEW YORK (AP) -- Kraft Foods is recalling 96,000 pounds of its Oscar Mayer wieners because they may mistakenly contain cheese.
The U.S. Department of Agriculture's Food Safety and Inspection Service said Sunday that packages of Kraft's "Oscar Mayer Classic Wieners" may instead contain the company's "Classic Cheese Dogs."
The agency says the product labels are incorrect and do not reflect the ingredients associated with the pasteurized cheese in the cheese dogs. Those products were made with milk and the known allergen is not declared on the label.
It said the problem was discovered by a consumer who notified Kraft on Friday. The company alerted the USDA the following day, according to the statement.
WASHINGTON (AP) -- A new government report says the Internal Revenue Service audits less than 1 percent of large partnerships, and that's drawing criticism from Congress.
The Government Accountability Office says the number of large businesses organized as partnerships has more than tripled since 2002, yet hardly any get close scrutiny by the IRS. In 2012, only 0.8 percent were subjected to field exams in which agents do a thorough review of books and records.
The GAO defines large partnerships as those with more than 100 partners and more than $100 million in assets.
Democratic Sen. Carl Levin of Michigan says many of the largest hedge funds and private equity firms are escaping IRS scrutiny.
The report says the audit rate has been persistently low since at least 2007.
The Good Life
Celebrating the events, adventures and activities that represent "The Good Life" in the NewsChannel 9 viewing area.
SideroadsTake a ride with Don Welch to explore the unique people and places to be found along the Sideroads of the NewsChannel 9 viewing area.
Road TrippinCome Road Trippin' with us and see all the great sites in your area!
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Educator of the WeekEach week WTVC will profile a teacher in Southeast Tennessee and acknowledge their part in the advancement of the education of their students and the contributions to their profession.
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