Update: Tribune to acquire Local TV for 2.75 billion

[A3N 996]

 

Interesting that TVNewsCheck seems it's likely the group goes as whole. Really the only group I could/would see taking them whole is Sinclair.

 

TVNewsCheck even mentioned that FOX regretted selling the stations to Local TV, and were looking to re-acquire some of the stations. I can't really see the group going as a whole because not only would that reduce the amount of buyers interested, but it would cost more. They might actually have a chance to unload them more quickly if they sold them off piece by piece. But we'll see what happens.

[Thundershock MN 169]

 

Maybe it was a deadline to get group bids in? Then perhaps they go individually if no one bids?

 

I actually think that they would be accepting all bid proposals (whole group/individual stations). Usually in auctions like this there is nothing to prevent a company from submitting multiple proposals in their bid. For example, Sinclair could submit one proposal for the whole group and another set with one proposal for each individual property. If they wait and drag it out the market could move in the other direction. You want to strike while the iron is hot. This way Local TV can weigh all their options at once.

 

 

Interesting that TVNewsCheck seems it's likely the group goes as whole. Really the only group I could/would see taking them whole is Sinclair.

 

I actually think the complete opposite. Just about every quote from a CEO or analyst or whomever is something to the effect of "(Group X) has interest in acquiring some of the stations". I'm sure that they will receive bids for the whole group. However, this should go down like Newport. Oak Hill will see they will receive more value selling the pieces.

 

I got to admit I was a little concerned that there wasn't any info coming out on any individual station sales yet. It had me starting to think maybe Oak Hill wanted to sell the whole group in one swoop and that's why we haven't heard much news. There aren't alot of groups that could (or would) try to absorb Local TV whole. However, there are a fair amount of groups that are linked to various properties but, never the whole group. So, knowing that they are taking bids is at least a bit comforting in that there should be a diverse group of bidders for the stations and not just the two usual suspects.

 

I think the general assessment of the article that a tsunami is coming is correct. Now that it's known that Local TV is/was taking bids and not just simply negotiating the sale of the company explains several things. First, why some of these station groups are seemingly standing pat even though they appear to be buyers and want to grow. They are waiting on the results of their bid(s). Once the buyers are known the groups passed over can move on to their plan B. They need to move on to their next target, lest they become the target of another group. Either way once the results are know things should move pretty fast and furious (at least for awhile.)

[GoldenShine9 1509]

The conflicts mentioned previously will likely guide them. One possibility is a company other than Sinclair (without using shells) bids on everything they can absorb as well, sending the remainder to individual bids. I don't see anyone other than perhaps Sinclair bidding for the entire portfolio since only a handful can afford everything and then they still have to deal with their conflicts.

[Rusty Muck 4157]

TVNewsCheck even mentioned that FOX regretted selling the stations to Local TV, and were looking to re-acquire some of the stations. I can't really see the group going as a whole because not only would that reduce the amount of buyers interested, but it would cost more. They might actually have a chance to unload them more quickly if they sold them off piece by piece. But we'll see what happens.

Well, remember that Fox bought all of United Television, then sold or traded many of the non-UPN stations (including KMOL). Same thing could be happening here.

[Rusty Muck 4157]

They obviously were in an enough of a buying mood to get WJZY/WMYT. I could see them getting KDVR (don't know why they sold it in the first place) and maybe KTVI and a big maybe to WDAF. I would say no to Cleveland (dying market).

The only reason KDVR was sold is because it had no duopoly partner. With the LMA of KWGN, now, that's a different story. Ditto with KTVI.

 

Cleveland is defined differently in the world of television (market #17 in a combined market with Akron/Canton) than radio (under the top 30 as the cities are ranked separately). WJW was and still is a benchmark of stability, and a strong affiliate... I can see them getting it back as well. A true dying market (literally and figuratively) is Detroit; last I checked, CBS and Fox still have O&Os there.

[Thundershock MN 169]

 

Well, remember that Fox bought all of United Television, then sold or traded many of the non-UPN stations (including KMOL). Same thing could be happening here.

 

I know I'm nit picking. But, all the non-UPN stations were traded/sold. There were only 2 of them at the time, KTVX & (at that time) KMOL.

 

KTVX needed to go do to Fox owning KTSU at the time. So, that got the ball rolling. KTVX/KMOL were swapped to Clear Channel for WFTC. The Fox affilation was destined to head from WFTC -> KMSP. So, Clear Channel seeing the writing on the wall took the 2 for 1 deal that also gave them a TV station in their home market. And, Fox killed two birds with one stone getting rid of both the non-UPN stations and creating another duopoly. Fox followed this up with another trade by swapping KPTV WOFL with Meredith. Again, another deal where Meredith realized they could lose the Fox affilation in two markets. So, they sacrificed one and wound up with a duopoly as a consolation prize in the deal. Sounds oddly like a similiar more recent Fox deal ***cough***(Capitol/WJZY)***cough*** doesn't it?

 

Either way your point stands. Fox has shown they aren't afraid to swap assets if it will benefit them. And, they aren't afraid to use leverage of yanking an affliation to come out on the better end of the deal or, get what they were really after. If Fox gets some of the Local TV stations I have no doubt we will see some swapping (a la the UTV/Chris Craft deal) like you mentioned. As I mentioned earlier in this thread, I think Tribune will be targeted for swapping this time around. Of course this is all predicated upon Fox bidding on the Local TV and being sucessful. Also, as I mentioned over in the buyers/sellers thread there will be some swapping (not just Fox, but all station groups) once all dust settles.

 

Sorry for the rambling and short history lesson.

[Mrtraveler01 737]

 

The only reason KDVR was sold is because it had no duopoly partner. With the LMA of KWGN, now, that's a different story. Ditto with KTVI.

 

Cleveland is defined differently in the world of television (market #17 in a combined market with Akron/Canton) than radio (under the top 30 as the cities are ranked separately). WJW was and still is a benchmark of stability, and a strong affiliate... I can see them getting it back as well. A true dying market (literally and figuratively) is Detroit; last I checked, CBS and Fox still have O&Os there.

 

CBS has an O&O in Detroit like Sinclair has an ABC station in St. Louis.

 

(In that they both do not have any newscasts and run syndicated shows during those times)

 

I wonder why CBS still wants to hold on to WWJ-TV even though any attempt to put a newscast on it always turns out to be a flop.

[Rusty Muck 4157]

CBS has an O&O in Detroit like Sinclair has an ABC station in St. Louis.

 

(In that they both do not have any newscasts and run syndicated shows during those times)

 

I wonder why CBS still wants to hold on to WWJ-TV even though any attempt to put a newscast on it always turns out to be a flop.

It's basically a white elephant. CBS clearly is embarrassed with WWJ, but the station has been an affiliate of last resort since CBS was forced to acquire it after a deal to get WADL blew up in their face.

 

The other O&Os basically make up for WWJ's awful performance.

[Samantha 2876]

I've always wondered why CBS never opted to swap WKBD and WWJ once the CBS-Viacom merger happened. WKBD had a longer, more established reputation than WGPR/WWJ, including a long-running news department. Still, I think it would be an asset in CBS's favor to swap WKBD and WWJ, creating a CBS outlet on channel 50 and a CW affiliate on 62.

 

Also... Granite is probably on the block. Would CBS be willing to buy WMYD and sell WWJ, perhaps in the hopes that doing so would make another effort at CBS local news in Detroit successful?

[channel2 869]

CBS probably thinks that Detroit is a lost cause for them...the surrounding stations (WTOL, WNEM, maybe WLNS) have probably been eating WWJ's lunch forever.

[sanewsguy 509]

Detroit is such an undesirable market nowadays I don't know why somebody would want a station there.

[CircleSeven 1944]

Fox could try and acquire WMYD, through a failed station waiver, because of the current owners episode of Chapter 11 and the attempt to sell the station before. But that alone would be a pure longshot.

[Thundershock MN 169]

 

I've always wondered why CBS never opted to swap WKBD and WWJ once the CBS-Viacom merger happened. WKBD had a longer, more established reputation than WGPR/WWJ, including a long-running news department. Still, I think it would be an asset in CBS's favor to swap WKBD and WWJ, creating a CBS outlet on channel 50 and a CW affiliate on 62.

 

Also... Granite is probably on the block. Would CBS be willing to buy WMYD and sell WWJ, perhaps in the hopes that doing so would make another effort at CBS local news in Detroit successful?

 

In the digital age being on UHF doesn't have the stigma like in the Analog days. So, channel position on the dial really doesn't matter anymore. And, really if you feel ashamed to be on channel 62 is channel 50 really any better?

 

What would WMYD provide? Lower dial postion, which really doesn't matter. Their news operation has been housed outside of Detroit for years. First, in Davenport via INN. And, now in Ft. Wayne via their sister stations WISE/WPTA. If anybody ends up with WMYD in my eyes it will be Fox.

 

And, just so I feel like we are staying somewhat on topic. How long until we start to hear the Local TV buyers? Anyone want to wager a guess? I'll say within 2 weeks.

 

Edit: I see CircleSeven beat me on WMYD -> Fox. However, I'm not sure a failing station waiver would really be needed. Isn't WHTV still planning to move to the old WPXD tower. I assume WPXD counted as one of the "at least eight independently owned TV stations remaining in the market" after the WWJ/WKBD combination. So, if that's the case then wouldn't WHTV's move to WPXD's old tower provide a "ninth independently owned station" allowing for another duopoly opportunity? No failing station waiver or LMA needed.

[Rusty Muck 4157]

I have a belief that WUTB was always kept around to keep Sinclair in check at affilate negotiation time. They always had it in their back pocket that if Sinclair didn't want to agree to whatever they wanted (ie: reverse compensation, etc.) they could lose the Fox affliation in their hometown. Fox must have felt it served it's purpose no longer needing it and moved on.

I'm curious if the WUTB deal actually resulted in an informal gentleman's agreement between Fox and Sinclair where, Sinclair won't bid against Fox for the LocalTV stations, but has right of first refusal for any of the non-Fox stations. Would make sense, especially after Fox declined to take any of the Sinclair stations offered for WUTB. In addition, Fox could also engineer a swap with Sinclair for WMYV to pair up with WGHP... and/or WCGV to pair up with WITI.

 

I also have a feeling that any swapping between Fox and Tribune is highly likely.

[A3N 996]

 

I'm curious if the WUTB deal actually resulted in an informal gentleman's agreement between Fox and Sinclair where, Sinclair won't bid against Fox for the LocalTV stations, but has right of first refusal for any of the non-Fox stations. Would make sense, especially after Fox declined to take any of the Sinclair stations offered for WUTB. In addition, Fox could also engineer a swap with Sinclair for WMYV to pair up with WGHP... and/or WCGV to pair up with WITI.

 

I also have a feeling that any swapping between Fox and Tribune is highly likely.

 

Tribune's west coast FOX affiliates (KCPQ,KTXL, KSWB) would fit nicely into FOX's porfolio.

[channel2 869]

KCPQ-KZJO would be the most attractive to them; Seattle is one of the largest markets in which they don't have an owned-and-operated station, and it's already a Fox/MyNetworkTV duopoly...

 

(I admit, I'd miss "Q13")

[Mrtraveler01 737]

 

KCPQ-KZJO would be the most attractive to them; Seattle is one of the largest markets in which they don't have an owned-and-operated station, and it's already a Fox/MyNetworkTV duopoly...

 

(I admit, I'd miss "Q13")

 

Considering that Fox tried to enter the Seattle market in the past, this isn't as far-fetched as it would seem.

 

"KCPQ came in danger of losing its Fox affiliation in February 1997, when Fox Television Stations was reported to be in negotiations to acquire then-UPN affiliate KIRO-TV from Belo Corporation (the current owners of NBC affiliate KING-TV, whose acquisition necessitated KIRO's sale) to make KIRO the market's Fox station.[1] Fox was reportedly dissatisfied with KCPQ, as it was described by one observer as being "recalcitrant."[2] At the time, KCPQ was one of the few large-market Fox stations without a news department. However, KIRO was ultimately sold to Cox Broadcasting,[3] and KCPQ retains its Fox affiliation to this day."

 

https://en.wikipedia.org/wiki/KCPQ

 

But I think KCPQ has improved since then. One of the issues Fox had with KCPQ back then was that it lacked a news department. Now they do even though they still lag behind more established competitors like KING, KIRO, and KOMO.

 

That said, Fox 13 Seattle doesn't sit right with me.

[TennTV1983 742]

I'm curious if the WUTB deal actually resulted in an informal gentleman's agreement between Fox and Sinclair where, Sinclair won't bid against Fox for the LocalTV stations, but has right of first refusal for any of the non-Fox stations. Would make sense, especially after Fox declined to take any of the Sinclair stations offered for WUTB. In addition, Fox could also engineer a swap with Sinclair for WMYV to pair up with WGHP... and/or WCGV to pair up with WITI.

Hard to say about that and if such an arrangement was put in place that would be an interesting one.

 

I also have a feeling that any swapping between Fox and Tribune is highly likely.

That appears to be highly possible considering the fairly good relationship between the two companies (That is, if Tribune is willing to buy some of the Local TV stations outright).

[C Block 1486]

Also, fun fact: The last I heard, Tribune still owns the former KWGN studios in Greenwood Village. While I have no idea what happens in an LMA when only one station is for sale, it could also be a possibility that the LMA could end, meaning that KWGN could go back to being an independent station. It would take something relatively catastrophic, and it would take a lot of work to bring that building back to broadcast quality, but it's theoretically possible.

[channel2 869]

What happened to it after KWGN left?

[C Block 1486]

It's just sitting there. Someone who walked through it told me that there are still half-empty coffee mugs lying around and that it looks as if everyone just got up and left, which is, in some ways, what actually happened. Since then, apparently they also filmed a few promos and corporate commercials there in what is/was a rather large (and now empty) studio. The last time I drove by it, I also saw the short-lived circle 2 logo still on the door.

[channel2 869]

Wow. I hope it gets some use again, it sounds like a waste of a decent facility.

 

Was its distance from Denver proper ever a problem for them?

[Thundershock MN 169]

Tribune still owns the KWGN building.

 

Although an LMA can always be unwound it's pretty rare. In this example the staff has been totally integrated, I assume onto the Local TV payroll. I would think alot of of the equipment was sold off. Tribune was in bankruptcy at the time and hard up for cash. So, I'd think anything they could sell they did. Also, wasn't the set moved, too.

 

So, really if they were to "undo" the LMA I'd have to think it would be a "worst case senerio" at this point. It would basically involve building the station back from the ground up. Great they have the building. But, now they need to re-staff it, buy new equipment, pay for a new set, etc. At what point does it become worth it? IDK, But I got to think given the expense they would try to work out something with their partner before going going that route.

 

And, if Tribune did go "nucular" and end the LMA it wouln't be rebuilding just one station, but two. That's alot of cash to lay out. Whoever, Tribune's new partner is will have them by the short hairs. Sure they could always say "screw it ,we're out." But, I think it would take alot of really unreasonable demands from the new LMA partner to tip the scales in favor restarting the station. Unfortunately, from a logistical and financial standpoint it just doesn't make sense unless their hand is really forced (which would take alot, I'm afraid.)

[Mrtraveler01 737]

 

It's just sitting there. Someone who walked through it told me that there are still half-empty coffee mugs lying around and that it looks as if everyone just got up and left, which is, in some ways, what actually happened. Since then, apparently they also filmed a few promos and corporate commercials there in what is/was a rather large (and now empty) studio. The last time I drove by it, I also saw the short-lived circle 2 logo still on the door.

 

Sounds like KTVI's old building in St. Louis. It's just sitting around collecting dust.

 

They were talking about demolishing it as part of some development but that got shelved during the Financial Crisis.

[C Block 1486]

Wow. I hope it gets some use again, it sounds like a waste of a decent facility.

 

Was its distance from Denver proper ever a problem for them?

Eh, I wouldn't say it's in the best shape. There's a reason why KDVR was given the upper hand of the LMA. Not only was their building 20 years newer than KWGN's, but I also think it's a lot bigger and was far more prepared for high definition. I also think KDVR's studio (which, ironically, was the same location as KWGN's studios until the early 80s when they moved to the DTC) makes more sense from a newsgathering standpoint with it being closer to downtown and the capitol. I don't know if KWGN's former location was ever a problem, though I did always think it was strange to be in the suburbs while all the other stations were either on or off Speer.

 

 

Tribune still owns the KWGN building.

 

Although an LMA can always be unwound it's pretty rare. In this example the staff has been totally integrated, I assume onto the Local TV payroll. I would think alot of of the equipment was sold off. Tribune was in bankruptcy at the time and hard up for cash. So, I'd think anything they could sell they did. Also, wasn't the set moved, too.

 

So, really if they were to "undo" the LMA I'd have to think it would be a "worst case senerio" at this point. It would basically involve building the station back from the ground up. Great they have the building. But, now they need to re-staff it, buy new equipment, pay for a new set, etc. At what point does it become worth it? IDK, But I got to think given the expense they would try to work out something with their partner before going going that route.

 

I agree that it would be unlikely and messy to 'divorce' KWGN from KDVR, but I thought it was worth mentioning that it is a possibility (a small one, but a possibility nonetheless).

 

I think that it probably is wishful thinking that KWGN become an independent station again, and I think that in some ways, the Denver market would have been better had KWGN stayed separate. With that said, I've been fairly happy with the situation that they have now. Being Local TV's biggest station, KDVR seems to be the strongest station in the group, and the current team they have running it has brought some stability to both stations. I also at least admire them for trying to give KWGN a unique identity, even if their morning shows are still an attack of the clones. I'd be worried if it were sold to someone like Sinclair that a lot of their stability would be broken. I hope that a quality broadcaster such as Tribune would buy both.