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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 12, 2014 07:32 GMT
MANILA, Philippines (AP) -- Asian stock markets sank today as recent falls in Chinese copper and iron prices added to jitters that the world's No. 2 economy is continuing to slow.
Market angst about China's economy has been fueled by weak exports for February, the government last week allowing the first-ever default in the domestic corporate bond market and the central bank permitting the tightly controlled yuan currency to weaken. China's economic growth of 7.7 percent last year was the lowest in two decades.
Benchmark U.S. crude oil fell below $100 a barrel. The dollar gained against the yen and was unchanged against the euro.
DETROIT (AP) -- There could be some legal potholes ahead for General Motors over its handling of a deadly defect in certain compact cars.
Word leaked of a criminal investigation yesterday and two congressional committees have opened probes into the matter.
The Justice Department is investigating whether GM broke any laws with its slow response to a problem with ignition switches in compact cars from model years 2003 to 2007. That's according to a person briefed on the matter. The probe is said to be handled by the U.S. Attorney's Office in New York.
Spokesmen for the Justice Department and GM would not comment. The investigation was first reported by Bloomberg News.
At issue is why GM waited until February to recall 1.6 million older-model compact cars worldwide, even though it admitted knowing about the problem for a decade. The faulty ignition switches have been linked to 31 crashes and 13 deaths.
WASHINGTON (AP) -- A plan to phase out government-controlled mortgage giants Fannie Mae and Freddie Mac and instead use mainly private insurers to backstop home loans has advanced in Congress.
The agreement by two key senators and a White House endorsement sent shares of Fannie and Freddie sinking Tuesday. Fannie stock fell $1.79, or more than 30 percent, to $4.03. Freddie dropped $1.48, or 26.8 percent, to $4.04.
The plan would create a new government insurance fund. Investors would pay fees in exchange for insurance on mortgage securities they buy. The government would become a last-resort loan guarantor.
President Barack Obama proposed an overhaul of Fannie and Freddie last year, but Congress has struggled to craft legislation. The government rescued the two mortgage giants with a $187 billion bailout, which they have repaid.
401 (k) FEES
WASHINGTON (AP) -- The Labor Department has proposed a new rule that would make it easier for those with 401(k) retirement plans and their employers to locate just what fees and expenses are attached.
Department officials say the rule would update a 2012 rule on the same subject. But many disclosure forms offered since then have become too lengthy, complex and confusing.
There is a public comment period of 90 days. Then, the department will hold focus groups on the proposed new rule with those from financial firms offering such plans, with a particular focus on pension plans with fewer than 100 participants.
CHICAGO (AP) -- The agency that oversees public transportation in Chicago is suing American Airlines.
The suit claims that the airline has falsely claimed to buy "vast amounts of jet fuel" from a small office in a rural community to avoid paying tens of millions of dollars in taxes in the nation's third-largest city, where the actual work is done.
The lawsuit comes a year after the same agency -- the Regional Transportation Agency -- accused United Airlines in a lawsuit of doing the same thing in the same small town.
WASHINGTON (AP) -- Deborah Hersman, the chairman of the nation's transportation accident investigations board, is leaving to become the president and CEO of the National Safety Council.
Hersman blogged that her nearly 10 years at the National Transportation Safety Board have been "a great ride," but she is moving on to the second "dream job" of her career.
She was on-scene for more than 20 accident investigations, including the crash of an Asiana Airlines jet in San Francisco last July.
Under Hersman, the five-member board has called for a ban on all cellphone use while driving, including hands-free calling, and lowering the legal limit for drivers' blood alcohol to combat drunken driving. She is particularly known for championing protections for children, including on planes.
WASHINGTON (AP) -- The Food and Drug Administration has halted operations at a Delaware cheese plant after an outbreak of listeria linked to the company's cheese killed one person and sickened seven others.
This is only the second time the FDA has shut down a plant after gaining that authority in a 2011 food safety law. The agency says that its inspectors found unsanitary conditions at Roos Foods in Kenton, Del., including a badly leaking roof and rusting and deteriorating equipment.
The FDA says it took the action because food manufactured by the company could cause "serious adverse health consequences or death to humans."
The company has already recalled a large variety of its products, including many cheeses in its Amigo, Anita, Mexicana, and Santa Rosa de Lima brands.
MEN'S WEARHOUSE-JOS. A BANK
NEW YORK (AP) -- It's time to suit up: Men's Wearhouse is buying Jos. A. Bank for $1.8 billion.
Men's Wearhouse Inc. will pay $65 per share, a 5 percent premium to Jos. A. Bank Clothiers Inc.'s closing price Monday of $61.83.
The agreement ends a months-long back and forth that began in October when Jos. A. Bank offered to buy its larger rival for $2.3 billion. Men's Wearhouse scoffed at that offer, and turned the tables, offering to buy its rival for $1.54 billion.
By early March Men's Wearhouse had an offer of $63.50 per share on the table but said it may raise the bid to $65 per share if some conditions were met.
The combined company will be the fourth-biggest U.S. men's clothing retailer with more than 1,700 U.S. stores and about $3.5 billion in sales.
The transaction is expected to close by the third quarter.
LAS VEGAS (AP) -- Caesars Entertainment Corp. has reported a large quarterly loss after taking a hefty impairment charge.
The casino corporation said Tuesday it took goodwill and asset-impairment charges because of the continuing slump in Atlantic City and expectations that some of its property holdings may not last as long as expected. The company took nearly $2 billion in impairment charges for the quarter.
The Las Vegas-based company, which runs the Caesars, Harrah's, and Horseshoe brands, has struggled since the recession, and has not posted a profit since 2009.
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