This Day On The Street
Continue to site
ADVERTISEMENT
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

Tribune Doubles Down on Television, Buys Local TV

Updated from 9:20 a.m. ET with comments from the conference call and current market information.

NEW YORK ( TheStreet) -- If anyone had any doubts as to where Tribune (TRBAA) is headed, the Chicago-based media company cleared up any confusion by announcing plans to acquire Local TV Holdings, the privately-held owner of 19 television stations in 16 U.S. markets, for $2.725 billion in cash.

Acquiring Local TV will increase Tribune's stable of local network-affiliated television stations to 42 spread out among 16 markets including New York, Los Angeles, Miami and Seattle. Tribune will also become the largest affiliate of 21st Century Fox (FOXA)'s television group well as the top affiliate of CW, the joint-venture between Tribune and Time Warner (TWX).

So, who said TV is dead?

"This is a transformational acquisition for Tribune," CEO Peter Liguori, the longtime television executive hired in January, said in a conference call with investors. "Our investment thesis is simple: scale matters. Scale enhances all elements of our business."

Shares of Tribune, which trade over-the-counter, gained 5.5% to close on Monday at $60.

The former chairman of Fox Broadcasting, Liguori said Tribune's expanded television holdings will give the company more clout when negotiating deals with the network and advertisers as well as in the development of new content.

The acquisition follows a similar deal by Gannett (GCI - Get Report), the country's largest newspaper company, which announced plans to purchase Belo Corp. (BLC), the Dallas-based broadcast television-station operator, two weeks ago in a $1.5 billion deal that increased McLean, Virginia company's broadcast portfolio from 23 to 43 stations.

Tribune, the company said in a statement, will become the country's largest commercial TV station owner once the deal closes later this quarter. Tribune also said the deal will be immediately accretive to Tribune earnings, an important point considering the company exited bankruptcy in December after a messy four-year effort to clean-up its finances following its 2007 buyout led by the real estate mogul Sam Zell.

The acquisition of Local TV, based in Newport, KY., comes as Tribune has hired Evercore Partners and JPMorgan Chase to explore the possible sale of its eight daily newspapers, a group that includes the Los Angeles Times, the Chicago Tribune, the Orlando Sentinel, the Baltimore Sun and the Hartford Courant. Among those interested in buying Tribune's newspapers are David and Charles Koch, the multi-billionaire owners of the oil and chemicals conglomerate Koch Industries.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG
TRBAA $55.84 0.27%
GCI $35.73 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs