This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Sinclair Broadcast Group Announces Agreement To Purchase 6 Newport TV Stations And Right To Operate 2 Other Stations; Agrees To Purchase Assets Of WTTA-TV In Tampa, FL

Stocks in this article: SBGI

BALTIMORE, July 19, 2012 /PRNewswire/ -- Sinclair Broadcast Group, Inc. (Nasdaq: SBGI), the "Company" or "Sinclair," announced today that it has entered into a definitive agreement to purchase the broadcast assets of six television stations owned and/or operated by Newport Television (" Newport") 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 $41.25 million deposit, through cash on hand along with a bank loan and/or by accessing the capital markets.

(Logo: )

"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. 

About Sinclair:

Sinclair Broadcast Group, Inc., the largest and one of the most diversified, independent television broadcasting companies, owns and operates, programs or provides sales services to 74 television stations in 45 markets.  Sinclair's television group reaches approximately 26.3% of U.S. television households and is affiliated with all major networks.  Pro forma for the Newport transaction, Sinclair will own and operate, program or provide sales services to 82 television stations in 47 markets, reaching 27.3% of the U.S. television households.  Sinclair's television portfolio will include 21 FOX, 19 MNT, 15 CW, 11 ABC, 11 CBS, 3 NBC, 1 independent and 1 Azteca station.  Sinclair owns equity interests in various non-broadcast related companies.  The Company regularly uses its website as a key source of Company information and can be accessed at

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs