Raycom and WVUE / New Orleans Go Shared Services

[mightynine 286]

http://www.wdsu.com/news/local-news/new-orleans/media-group-agrees-to-shared-services-deal-for-operations-of-wvue-tv/-/9853400/23069272/-/vrwcepz/-/index.html?absolute=true&utm_source=dlvr.it&utm_medium=twitter&utm_campaign=wdsu

 

The agreement announced on Wednesday will give Raycom Media, one of the nation's largest television groups, operational control, but not ownership, of WVUE. A Shared Services Arrangement allows the non-ownership party certain amounts of control, which may, in the case of broadcasters, include editorial, programming and personnel oversight.

 

So no sale, but looks like Benson's had enough.

 

EDIT: Ah, here's the release from Louisiana Media Company, agreement expected to take effect December 16th

 

http://www.fox8live.com/story/24024517/wvue-fox-8-owner-tom-benson-has-announced-that-louisiana-media-company-has-reached-agreement-on-a-shared-services-agreement-with-raycom-media-that

 

New Orleans, La. (November 20, 2013) – WVUE Fox 8 Owner Tom Benson has announced that Louisiana Media Company has reached agreement in principle on the terms of a Shared Services Agreement with Raycom Media that allows the New Orleans-based television station to remain locally-owned, and expands its regional opportunities.

This agreement will allow Louisiana Media Company to "join hands" with the strongest regional television group in Louisiana, Mississippi and Alabama, Raycom Media. The shared services agreement between WVUE Fox 8 and Raycom Media will permit Raycom Media to provide operational services for the station, under the ultimate control of Louisiana Media.

[Mrtraveler01 737]

 

http://www.wdsu.com/news/local-news/new-orleans/media-group-agrees-to-shared-services-deal-for-operations-of-wvue-tv/-/9853400/23069272/-/vrwcepz/-/index.html?absolute=true&utm_source=dlvr.it&utm_medium=twitter&utm_campaign=wdsu

 

 

So no sale, but looks like Benson's had enough.

 

EDIT: Ah, here's the release from Louisiana Media Company, agreement expected to take effect December 16th

 

http://www.fox8live.com/story/24024517/wvue-fox-8-owner-tom-benson-has-announced-that-louisiana-media-company-has-reached-agreement-on-a-shared-services-agreement-with-raycom-media-that

 

That's pretty quick, but I guess since this isn't a complete acquisition, they can run the station much faster than other acquired stations can.

 

And it looks like Raycom really wanted to get into the New Orleans market considering they have stations in every market that borders it. Remember just last month we were talking about Raycom wanting to buy WVUE completely, is this a continuation of those talks or did Raycom come back to Benson with a more satisfactory offer?

 

How do you think this will impact the content of their news coverage as well?

[MidwestTV 1173]

WVUE sucks don't they? Raycom couldn't make them much worse.

[Action Newsroom 1149]

 

WVUE sucks don't they? Raycom couldn't make them much worse.

 

They're not number 1 (obviously) or number 2, so...

[effseesee 101]

I'm assuming the deal also includes an option to purchase the station, at an agreed upon price, by a certain date.

[Rusty Muck 4164]

Remember this thread?

The Retirement Systems of Alabama October newsletter includes a short article that notes its subsidiary, Raycom Media, "is expanding with the proposed purchase of the Fox station in New Orleans for $55.6 million."

And here's what I said at the time... well over a month ago...

It may or may not be S!nclair, but there has to be a lot of jockeying for position right now for WVUE.

That Raycom made the boast on their newsletter either suggests that: 1) Benson caught wind of the newsletter, and took the deal off the table asking for a higher price, or 2) there was a clearical error of astronomical proportions at Raycom HQ.

I'm under the impression now that Raycom was the only serious buyer for WVUE that Benson had in mind all along.

[promoguy98 252]

If I had to guess... by the start of the new year, WVUE will roll out the hybrid WBRC look or the 2013 newer Raycom animation package that's been launching on a few of their stations... oh and safe bet Chris Gari is dusting off their CD collections and will be expecting a call from Fox 8 or Raycom Marketing very soon LOL! Fox 8 can surely use an enhanced image. I hope they don't go swoosh swoosh stinger animation crazy. I'm not sure how well that would go over in a liberal yet "conservative" WWL-style TV market.

[GoldenShine9 1509]

 

Remember this thread?

And here's what I said at the time... well over a month ago...

I'm under the impression now that Raycom was the only serious buyer for WVUE that Benson had in mind all along.

 

Either that, or Benson refused other offers (perhaps from Sinclair) thinking they would go against his wishes for the station? It means SBG has no realistic path into New Orleans anymore.

[A3N 996]

 

Either that, or Benson refused other offers (perhaps from Sinclair) thinking they would go against his wishes for the station? It means SBG has no realistic path into New Orleans anymore.

 

Unless Tribune decides to unload WGNO....

[TexasTVNews 1366]

What would have happen if Tribune decides to sell WGNO to either Nexstar, Gray, Media General, Hearst or Cox?

[Mrtraveler01 737]

 

What would have happen if Tribune decides to sell WGNO to either Nexstar, Gray, Media General, Hearst or Cox?

 

I could easily see them selling to Nexstar if Tribune really wanted to sell their duopoly there (they also own WNOL). I just don't see any indication that Tribune is in a selling mood at the moment.

 

Hearst is already a nonstarter because they already own WDSU.

[CircleSeven 1944]

If Tribune would be in a selling mood, you know Sinclair would knock on Tribune for WDCW, since they already acquired WJLA. Fox probably want to buy WPHL from them too. And anyway, the reason why the Trib wants all these properties is to link those with cable channel WGN America, in future retrans consent agreements.

 

But yeah, Trib probably want to keep everything they have now.

 

If I had to guess... by the start of the new year, WVUE will roll out the hybrid WBRC look or the 2013 newer Raycom animation package that's been launching on a few of their stations... oh and safe bet Chris Gari is dusting off their CD collections and will be expecting a call from Fox 8 or Raycom Marketing very soon LOL! Fox 8 can surely use an enhanced image. I hope they don't go swoosh swoosh stinger animation crazy. I'm not sure how well that would go over in a liberal yet "conservative" WWL-style TV market.

I wish Chris can make a customized original theme for WVUE. A brand new theme that would stand out and resonate with the viewers in NOLA. I know they'll probably won't do so in the interim or even at all. It would be sad if they just use The X, The Paramount, or The One and Only as an easy way out, although I wouldn't have a problem with either one. Pick something that would sound at least original.

[promoguy98 252]

 

I wish Chris can make a customized original theme for WVUE. A brand new theme that would stand out and resonate with the viewers in NOLA. I know they'll probably won't do so in the interim or even at all. It would be sad if they just use The X, The Paramount, or The One and Only as an easy way out, although I wouldn't have a problem with either one. Pick something that would sound at least original.

 

- - - - -

 

 

Yeah would be nice to see them pick something unique out of Gari's collection. If they play things totally safe, tried & true, The X-Package (Generic or Fox) wouldn't be too bad of a choice, I think The Edge/Newschannel Collection could work nicely and obviously there is The One and Only. The "only" thing I dislike about that package is how Series 4 through 7 is basically the 3 note variation of the full 8-note logo. I don't blame the original commissioning station for wanting to shorten the logo after it was burnt in within their market, but it would have been nice for Gari to offer the mixes both ways for new/newer stations using the theme. I've been with two stations that used this package, and just for the sake of consistency within promos and opens, and for helping to burn the logo into the minds of viewers, having to choose cuts around those random variations drove me nuts.

 

It will be interesting to see what they ultimately come up with. My prediction is a fresh image and sound come the end of December or before Feb. sweeps at the latest.

[GoldenShine9 1509]

With Tribune gaining a lot of big-3 affiliates, I wonder if they will put some money and effort into the distant fourth-place news operation in NOLA?

 

BTW, I think it is WWL the runaway leader, with WVUE and WDSU basically neck-and-neck for second, correct?

[promoguy98 252]

 

With Tribune gaining a lot of big-3 affiliates, I wonder if they will put some money and effort into the distant fourth-place news operation in NOLA?

 

BTW, I think it is WWL the runaway leader, with WVUE and WDSU basically neck-and-neck for second, correct?

 

I believe so. The gap is a bit tighter than in the pre-Katrina days, meaning the 2nd and 3rd runner ups can see WWL in certain demos and time slots without reading glasses or a zoom lens. WVUE and DSU are both giving them a run for their money, but Channel 4 is still overall leading. With so little changing in the NOLA TV market, it's crazy to think that over the short-term both WVUE will likely adjust it's presentation and WWL will be going to Gannett and can't rule out some adjustments. Should be fun to watch!

[A3N 996]

 

With Tribune gaining a lot of big-3 affiliates, I wonder if they will put some money and effort into the distant fourth-place news operation in NOLA?

 

BTW, I think it is WWL the runaway leader, with WVUE and WDSU basically neck-and-neck for second, correct?

 

I don't think that Tribune will pour in enough money to make WGNO competitive in the NOLA market. I'm sure they've considered their options but they won't invest (more) if there is no return on their investment. WGNO has been neglected by Tribune over the years that it just might be easier for them to get rid of the station. This doesn't mean that Tribune is not investing in it's stations, it just means that it invests in certain stations that have the opportunity to be competitive or are competitive like WGN, KTLA, WPIX and even KSWB.

[GoldenShine9 1509]

 

I don't think that Tribune will pour in enough money to make WGNO competitive in the NOLA market. I'm sure they've considered their options but they won't invest (more) if there is no return on their investment. WGNO has been neglected by Tribune over the years that it just might be easier for them to get rid of the station. This doesn't mean that Tribune is not investing in it's stations, it just means that it invests in certain stations that have the opportunity to be competitive or are competitive like WGN, KTLA, WPIX and even KSWB.

 

Good points when you consider who is far ahead of them (Gannett, Hearst and Raycom), it would be tough to be anything more than a distant fourth in the market.

 

For a comparison, the stations being gained from Local TV are, in many cases, strong in their market (including quite a few market leaders, and the smaller of them - WNEP and KFSM for example - dominate the markets). If the competition in NOLA was weak (or if they only had one strong competitor instead of three), then they would have a better case for big investments. A good comparison would be in Detroit with WWJ, clearly the dog station in CBS's portfolio.

 

As for WVUE, I wonder if Benson had other offers (such as from Sinclair) but declined them thinking they would not be beneficial to the station after his rebuilding of it, even if the offers were for more money?

[Mrtraveler01 737]

Found a detailed article in the Times-Picayune.

 

http://www.nola.com/tv/index.ssf/2013/11/wvue_enters_into_shared-servic.html

 

Looks like WVUE is getting a new general manager out of the deal but outside of that, they keep emphasizing that there won't be any other major staffing changes.

[Rusty Muck 4164]

 

Good points when you consider who is far ahead of them (Gannett, Hearst and Raycom), it would be tough to be anything more than a distant fourth in the market.

 

For a comparison, the stations being gained from Local TV are, in many cases, strong in their market (including quite a few market leaders, and the smaller of them - WNEP and KFSM for example - dominate the markets). If the competition in NOLA was weak (or if they only had one strong competitor instead of three), then they would have a better case for big investments. A good comparison would be in Detroit with WWJ, clearly the dog station in CBS's portfolio.

 

As for WVUE, I wonder if Benson had other offers (such as from Sinclair) but declined them thinking they would not be beneficial to the station after his rebuilding of it, even if the offers were for more money?

 

Benson probably still wanted some degree of influence in the stations' operations with the SSA, of which Raycom has apparently no issue with. It's a win-win for both parties.

 

S!nclair's varied trend of micromanaging the stations they acquire (which depends on the station, as sanewsguy has noted several times with WOAI) likely didn't sit well with Benson, but I would be shocked if he straight-up ignored an offer from them.

[Mrtraveler01 737]

 

Benson probably still wanted some degree of influence in the stations' operations with the SSA, of which Raycom has apparently no issue with. It's a win-win for both parties.

 

S!nclair's varied trend of micromanaging the stations they acquire (which depends on the station, as sanewsguy has noted several times with WOAI) likely didn't sit well with Benson, but I would be shocked if he straight-up ignored an offer from them.

 

My guess is that Raycom was the first to approach Benson and he refused because he still wanted to own it. I also think that Raycom wanted to get into the NOLA market for a while now and was going to be aggressive about it.Then I'm guessing Raycom came to a compromise with the SSA.

 

Sinclair might've offered a bid as well but it looks like Raycom had the advantage of having people familiar with WVUE and how it works.

 

It really does look like WVUE wanted to make sure it was going to be a good fit before going forward with the deal.

[TVNewsLover 727]

I was beginning to think about this for a bit. Raycom's portfolio of stations is a mix (17 NBC, 12 CBS, 12 FOX, 6 ABC, 5 MNTV, 4 CW), while Tribune's (pre-Local TV acquisition) is all FOX & CW (except for WGNO which is ABC, and WPHL & KZJO which are MNTV). Is it possible that if Benson decides to sell WVUE altogether, that Tribune might push for the FOX affiliation for WGNO (since they already have the CW affiliation on WNOL)?

[mike91 66]

 

I was beginning to think about this for a bit. Raycom's portfolio of stations is a mix (17 NBC, 12 CBS, 12 FOX, 6 ABC, 5 MNTV, 4 CW), while Tribune's (pre-Local TV acquisition) is all FOX & CW (except for WGNO which is ABC, and WPHL & KZJO which are MNTV). Is it possible that if Benson decides to sell WVUE altogether, that Tribune might push for the FOX affiliation for WGNO (since they already have the CW affiliation on WNOL)?

 

No way that happens. Remember Tribune is acquiring Local TV and they have a bunch of NBC, CBS, and ABC stations. So that ends that argument. Secondly, I doubt Benson/Raycom is going to let their affiliation with FOX go quietly, given they are the home station for the Saints. If you were FOX, would you want your affiliation on a fairly decently performing station or one that is consistently in the shitter of the market?

[A3N 996]

 

I was beginning to think about this for a bit. Raycom's portfolio of stations is a mix (17 NBC, 12 CBS, 12 FOX, 6 ABC, 5 MNTV, 4 CW), while Tribune's (pre-Local TV acquisition) is all FOX & CW (except for WGNO which is ABC, and WPHL & KZJO which are MNTV). Is it possible that if Benson decides to sell WVUE altogether, that Tribune might push for the FOX affiliation for WGNO (since they already have the CW affiliation on WNOL)?

 

Doubtful. It's more likely that Tribune sells WGNO than switching affiliations.

[NewsMaster 226]

 

Doubtful. It's more likely that Tribune sells WGNO than switching affiliations.

 

I doubt your doubt. I could see an affiliation swap but not a sale, since Tribune will have many other stations that are in smaller markets once the Local TV deal is done.

[A3N 996]

 

I doubt your doubt. I could see an affiliation swap but not a sale, since Tribune will have many other stations that are in smaller markets once the Local TV deal is done.

 

I've discussed this earlier, but market size is not necessarily the issue here. The issue is that WGNO is doing horribly in the ratings when compared to the othe NOLA stations. And as Mike91 points out, WVUE/FOX is the tv home for Saints Football, and I agree with him that Benson will not easily let it go. There's a reason why Tribune is investing in certain stations and not others in their portfolio...