By RTT News, February 28, 2013, 06:38:00 PM EDT
(RTTNews.com) - Sinclair Broadcast Group Inc. ( SBGI ), on Thursday agreed to acquire the broadcast assets of 18 television stations owned by Barrington Broadcasting Group LLC for $370 million. Sinclair also agreed to operate or provide sales services to another six stations. The total 24 stations are located in 15 markets and reach 3.4% of the U.S. TV households.
The transaction is subject to approval by the Federal Communications Commission and antitrust clearance and is expected to close in the second quarter of 2013.
The company expects to finance the purchase price, less $20 million in deposits, through a bank loan and/or by accessing the capital markets.
"This week, we launched our small market television group when we announced we would be acquiring certain of the COX Media television stations," said Sinclair CEO David Smith.
"The Barrington stations are an important part of that strategy, providing meaningful scale to the group. Including synergies, we believe the Barrington stations can generate approximately $71 million of cash flow, on average. When combined with the COX stations, we expect our expertise and resources to create approximately $29 million in synergistic, incremental cash flow, equating to approximately $232 million of added equity value or $2.85 per share," added Smith.
Sinclair also said that due to FCC ownership conflict rules, it will sell its station in Syracuse, NY, WSYT (FOX), and assign its local marketing agreement and purchase option on WNYS (MNT) in Syracuse, NY.
The company will also sell its station in Peoria, IL, WYZZ (FOX). In addition, the license assets of four stations will be purchased by Cunningham Broadcasting Corp. and Howard Stirk Holdings, a newly formed entity owned and controlled by Armstrong Williams, founder and CEO of boutique communications firm, The Graham Williams Group.
Sinclair also named Steve Pruett as chief operating officer of Chesapeake TV. Pruett most recently as CEO of Communications Corp. of America's 25 television station group. Steve will oversee the growth and development of the company's small market strategy, while Steve Marks will continue as chief operating officer of Sinclair Television Group, overseeing its mid-sized market strategy.
For comments and feedback: contact firstname.lastname@example.org