Sinclair Broadcast announced that it has entered into a definitive agreement to purchase the stock and broadcast assets of four television stations owned by COX Media Group for $99M less $4.3M of working capital adjustments and entered into an agreement to provide sales services to one other station. The five stations are located in four markets and reach 0.9% of the U.S. TV households. The transaction is subject to approval by the FCC, and antitrust clearance. The company anticipates the transaction will close and fund in Q2, subject to closing conditions. The company expects to finance the purchase price, less $5M in deposits, through a bank loan and/or by accessing the capital markets. Due to FCC ownership restrictions, Sinclair will continue providing the services to KAME in Reno, NV that CMG has historically provided. The license assets of KAME will be purchased by Deerfield Media. David Smith, Sinclair CEO commented, "We believe our platform size and leadership position allow us to bring meaningful purchasing power and negotiating leverage to these stations. Including synergies, we believe the CMG stations can generate approximately $20M of cash flow, on average."
- Mergers, Acquisitions & Takeovers