LIN is merging with Media General

[GoldenShine9 1509]

Next up is dealing with the shelled stations within the deal.

 

Most I think would fit on .2s or .3s. Augusta is the exception - Schurz owns the station legally, and would likely scream at MG if they shut it down, even if they are absent (MG is doing all the work for them).

[GoldenShine9 1509]

Remaining shelled stations on the Media General side:

• WLNS/WLAJ Lansing (requires both 6.2 and 6.3 to accommodate two signals)
  
• WTEN/WXXA Albany, NY (10.2, and 19.2 on WTEN satellite WCDC, are both free - that actually expands WXXA's reach)
  

Remaining shelled stations on the LIN side:

• KASA/KASY/KRQE/KWBQ Albuquerque (both 2.2 and 13.2 are free)
  
• KBIM/KRWE Roswell (satellites of KASA/KRQE; 6.2 is free; 6.3 could also be used to simulcast another signal?)
  
• KSNT/KTKA Topeka (requires 27.2, 27.3 and 27.4 to accommodate all the signals, although the Fox signal has a separate KTMJ-CD)
  
• KXAN/KNVA Austin (14.2 and 36.2 are both free and both could be used)
  
• WDTN/WBDT Dayton (2.2 is free as just an SD simulcast of 2.1)
  
• WKBN/WYTV Youngstown (requires 27.2, 27.3 and 27.4 to accommodate all the signals, although the Fox signal has a separate WYFX-LD)
  
• WPRI/WNAC Providence - Grandfathered LMA
  

There is also the WJBF/WAGT issue with Schurz but that is a different topic of discussion.

[cg41386 131]

Prediction on how all the markets will shape up afterward:* Savannah: Not sure. Hearst has a distant 3rd place station, will they improve it or do nothing with it? I figured Sinclair would most want that station. I really don't expect much change in that market, WTOC is simply too dominant and WSAV well entrenched as well. WTGS goes to Sinclair cleanly, but it really is a wash since Savannah is too small for four news operations.* Providence: WHOA!!! If Sinclair manages WJAR decently, they should do well. But if they try to get political in a very blue region, they will plunge in the ratings fast. Media General might have got a coup there. WPRI/WNAC cannot be broken up by anyone (if Sinclair acquired those, they have to take both and keep both without breaking it), so that might have been MG's thinking. As for WLNE, they are likely stuck in a distant 3rd for a while. But WLNE is likely for sale soon too...* Birmingham: This is a game changer, folks. While I doubt Hearst will do much in Savannah, they have a huge opening here. But this - combined - is a HUGE loss for WABM/WBMA (33/40). I expect them to fall to 4th place, especially with the loss of coverage. Media General also makes big gains, and all this puts Raycom/WBRC on notice as well.* Green Bay: Another situation that not much will likely happen in. WBAY is already dominant and Packers revenue couldn't lure Media General away. WLUK actually doesn't fit too badly with Sinclair given their large Midwest presence, and since Quincy and Gray were not interested in WBAY (the most suitable for them), it might be basically status quo there. WGBA is the wildcard, will Scripps improve it?* Tampa: WTTA goes away and WFLA gains a sister station at last. But Hearst still has WMOR on its back (which I thought would be trade bait here) - Scripps or Gannett might want it? Any trade bait for them?* Colorado Springs: Media General grows a western cluster some more, but there is too much competition ahead of them. Not much change in the dynamics here.* Mobile: WALA under Meredith was a shocker (I figured Raycom would want it). As for market dynamics, no real change. WKMG and WALA are both the stronger stations, WEAR has a niche in Florida and WPMI is a distant 4th.

Why would that cause WBMA to fall to 4th? Loss of coverage? Aren't they still going to be on cable in the areas affected?

[GoldenShine9 1509]

Why would that cause WBMA to fall to 4th? Loss of coverage? Aren't they still going to be on cable in the areas affected?

They are a close 2nd/3rd now, and WVTM is 4th. How well does the WABM signal reach compare to the rest?

 

What will happen to WIAT back under Media General? They made huge gains last time they were under their ownership (they were a dog station under Park and other owners previously) but MG did nothing to improve WVTM and left it in 4th. So many unknowns in Birmingham. WBRC could either be smiling or scared - the beacon of stability has to wonder if the others will move forward or stagnate under new ownership.

[Mrtraveler01 737]

Wow, Sinclair really gained a money making machine with WLUK. Did not see that one coming. I figured MG wanted to hold onto it for the Packers revenue.

[Glimmer 238]

 

Prediction on how all the markets will shape up afterward:

 

* Tampa: WTTA goes away and WFLA gains a sister station at last. But Hearst still has WMOR on its back (which I thought would be trade bait here) - Scripps or Gannett might want it? Any trade bait for them?

 

WPBF could fit well with Gannett; it would give them a further news foothold in Florida with WTLV/WJXX and WTSP.

[elfuego35 89]

 

They are a close 2nd/3rd now, and WVTM is 4th. How well does the WABM signal reach compare to the rest?

 

What will happen to WIAT back under Media General? They made huge gains last time they were under their ownership (they were a dog station under Park and other owners previously) but MG did nothing to improve WVTM and left it in 4th. So many unknowns in Birmingham. WBRC could either be smiling or scared - the beacon of stability has to wonder if the others will move forward or stagnate under new ownership.

 

Looking at the FCC coverage maps, the signal of WABM is only slightly weaker than the signal of the other stations in the market. As long as Sinclair makes no drastic personnel changes, I think they will be fine.

 

The thing that is forgotten is that LIN management will take over the vast majority of operations of Media General at a corporate level. With that in mind, not much will likely change at WIAT.

[Breaking News 802]

 

Prediction on how all the markets will shape up afterward:

 

* Savannah: Not sure. Hearst has a distant 3rd place station, will they improve it or do nothing with it? I figured Sinclair would most want that station. I really don't expect much change in that market, WTOC is simply too dominant and WSAV well entrenched as well. WTGS goes to Sinclair cleanly, but it really is a wash since Savannah is too small for four news operations.

 

* Providence: WHOA!!! If Sinclair manages WJAR decently, they should do well. But if they try to get political in a very blue region, they will plunge in the ratings fast. Media General might have got a coup there. WPRI/WNAC cannot be broken up by anyone (if Sinclair acquired those, they have to take both and keep both without breaking it), so that might have been MG's thinking. As for WLNE, they are likely stuck in a distant 3rd for a while. But WLNE is likely for sale soon too...

 

* Birmingham: This is a game changer, folks. While I doubt Hearst will do much in Savannah, they have a huge opening here. But this - combined - is a HUGE loss for WABM/WBMA (33/40). I expect them to fall to 4th place, especially with the loss of coverage. Media General also makes big gains, and all this puts Raycom/WBRC on notice as well.

 

* Green Bay: Another situation that not much will likely happen in. WBAY is already dominant and Packers revenue couldn't lure Media General away. WLUK actually doesn't fit too badly with Sinclair given their large Midwest presence, and since Quincy and Gray were not interested in WBAY (the most suitable for them), it might be basically status quo there. WGBA is the wildcard, will Scripps improve it?

 

* Tampa: WTTA goes away and WFLA gains a sister station at last. But Hearst still has WMOR on its back (which I thought would be trade bait here) - Scripps or Gannett might want it? Any trade bait for them?

 

* Colorado Springs: Media General grows a western cluster some more, but there is too much competition ahead of them. Not much change in the dynamics here.

 

* Mobile: WALA under Meredith was a shocker (I figured Raycom would want it). As for market dynamics, no real change. WKMG and WALA are both the stronger stations, WEAR has a niche in Florida and WPMI is a distant 4th.

 

http://www.mediabistro.com/tvspy/its-trading-day-five-station-groups-buy-and-sell-ten-stations_b127277

 

from TV Spy

[skbl17 188]

Re: Savannah, I cannot help but agree with GoldenShine9. as I can't see much changing in the Coastal Empire/Lowcountry; when you have a station that brands themselves as simply THE News and has the ratings dominance to prove it, it would be a very, very uphill battle for the other stations. It's like Dothan, but with more established news operations.

 

Re: Birmingham, outside of severe weather coverage, I can see ABC "33/40" (in quotes because after the swap the branding will just sound silly) dropping a bit in the ratings. Maybe not fourth place, but we'll see how much Sinclair invests in the news operation there. The WVTM acquisition by Hearst will make things interesting over at Alabama's 13. This means that just this year alone, two big four affiliates have changed ownership and there's about to be a big affiliation swap.

 

This M&A craze just gets crazier; I can't keep up!

[channel2 869]

Sinclair is getting out of Colorado! I don't know much about KXRM, but I hope LIN Media General is better to them than Sinclair - they're certainly better than that low-rent Barrington (who I know from my glimpses of WNWO - that station was so sad, last I saw of it).

[GoldenShine9 1509]

Something tells me that, if they had the ability to, Sinclair would have bought everything with their shells if necessary...

[TennTV1983 742]

Talk about something right outta left field. Meredith gets WALA-TV (making it only their third Fox station in the group) while Hearst gets WVTM (Goodbye "Canvas"; Hello "Strive").

 

I'm guessing that makes both companies viable trade partners now if the price is right to them (Hearst especially since they had been sitting silent on acquisitions until now).

[Chief-O 28]

Disgusted, but not surprised, that Sinclair is getting WLUK. I did see that as a possible scenario.......but I honestly started to feel that WBAY would've gotten divested. I wouldn't mind seeing what they do to the news op, but given their track record, I'm sure I'll wind up frying a few brain cells in the process.

[scrabbleship 427]

Talk about something right outta left field. Meredith gets WALA-TV (making it only their third Fox station in the group) while Hearst gets WVTM (Goodbye "Canvas"; Hello "Strive").

I think WALA would be Meredith's fourth Fox. They already had WHNS, KVVU, and KPTV.

 

To WJAR for a second, I have a very good feeling that WLWC's programming will end up on 10.2 when/if OTA cashes out. I know WLWC still airs Ring of Honor and it would bring the history of that station full circle.

[TennTV1983 742]

 

I think WALA would be Meredith's fourth Fox. They already had WHNS, KVVU, and KPTV.

 

I always forget that they own a station in Vegas for some reason.

[GoldenShine9 1509]

I also noticed WVTM has a new logo...is that a Hearst-made logo that came right away? Is there a "silent" SSA going on right now?

 

Conclusions:

 

* We were correct in Savannah that WSAV was staying with MG (consensus there), but most of us had Nexstar or Gray to purchase WJCL. Neither company were involved in the deal at all. We also were wrong thinking WTGS would be dissolved.

 

* We were correct in Birmingham that WIAT was coming back to MG and WVTM being sold, and a few mentions of Hearst came along, but we didn't have them as a frontrunner.

 

* We figured in Mobile it would be Raycom buying, with no consensus on the station being sold, although Meredith was considered a secondary candidate. Raycom was silent here, and their only path into Mobile now is to acquire WEAR or WPMI if Sinclair is forced to divest one of them.

 

* Providence had no real consensus, but no one considered Sinclair a candidate, considered they could not acquire yet another station in Mobile or Birmingham. The duopoly of WPRI/WNAC (grandfathered LMA) was likely a key factor.

 

* Green Bay was another market that had no real consensus. The overriding consideration was Packers revenue vs. dominant news station. The latter won out. We figured the Packers revenue would win out, and Gray or Quincy would be top contenders (way off there!)

 

* The other side deals likely were forced, otherwise Sinclair would be sitting over 39.0% and the deal would be having trouble with the FCC. We figured Hearst may have a side deal with WMOR if they were involved, but we totally forgot about WTTA.

[TennTV1983 742]

 

I also noticed WVTM has a new logo...is that a Hearst-made logo that came right away? Is there a "silent" SSA going on right now?

 

No. That logo had been in place since the debut of their current (and soon to be former) graphics package from jcbD.

[Samantha 2876]

...Well, this is interesting.

 

Sinclair. I said immediately that Sinclair would be involved because both companies were using a mutual broker, Moelis & Co. I'm not sure why Sinclair decided to dump Colorado Springs, though the shedding of the lone wolf in Tampa makes a lot of sense. Providence is a real surprise, though Sinclair of course is no stranger to New England with their Portland station WGME, as well as their one-time ownership of WGGB and WLWC. WJAR is going to be run very differently; here it is evident that the grandfathered LMA dictated a course of action for MG. WTGS is a perfect fit for Sinclair; even the calls make it sound like a heritage SBG station.

 

Hearst. Welcome to the party at long last; you've finally realized you need to bulk up. Birmingham actually fits Hearst pretty well given their presence in some other Southern markets, such as Jackson, Greenville SC, and Orlando. WJCL fits with Hearst's expansive ABC station portfolio.

 

Meredith. See: KVVU, KPTV. A new market, sure, but it works. Meredith can run a good Fox affiliate.

 

We must beg the question: How will Hearst and Sinclair handle the split of WTGS from WJCL?

 

"Media General said it will structure the transactions, along with its previously announced purchase of WHTM Harrisburg, Pa., to maximize tax efficiencies." — Like-kind exchanges here?

[Chief-O 28]

* Green Bay was another market that had no real consensus. The overriding consideration was Packers revenue vs. dominant news station. The latter won out. We figured the Packers revenue would win out, and Gray or Quincy would be top contenders (way off there!)

Yes, WLUK has the Packers, but that's only a few months out of the year. WBAY's market-leading newscasts have a year-round impact, and have had such impact for years.

 

As I mentioned in my past post, I thought WBAY would get sold and WLUK kept [especially seeing as post-merger MG was supposed to be bringing in LIN's office staff to run things; I'd assume Sadusky would've wanted to keep what he already had], and I did feel that Gray would've been a top-runner for them. Other than MG owning WBAY and Hearst owning WISN, Quincy has a strong-hold on ABC stations in Wisconsin......I suppose they could've tried making overtures for WBAY as well [likewise, Hearst].

[NEOMatrix 1295]

How will Sinclair handle a newly seperate WTGS? I'm assuming that 28 will still use WJCL's news department under a NSA but that's about it as far as sharing.

[GoldenShine9 1509]

http://www.mediabistro.com/tvspy/its-trading-day-five-station-groups-buy-and-sell-ten-stations_b127277

 

from TV Spy

“This transaction not only allows us to strengthen our portfolio geographically, but because it frees up 0.7% of national ownership cap, it allows us the ability to acquire additional television stations that are core to our asset base,” David Smith, president and CEO of Sinclair said in a statement.

 

Sinclair’s Smith added, “Although there is a need for regulatory reform to increase the ownership cap, swaps like this one are advantageous to us in that we are trading a single station MyNet affiliate in a large market, allowing us to acquire quality television stations in smaller DMAs.”

 

Quote from the article. Clearly Smith is still hungry for more despite bumping up against the 39% cap.

[Thundershock MN 169]

 

Remaining shelled stations on the Media General side:

• WLNS/WLAJ Lansing (requires both 6.2 and 6.3 to accommodate two signals)
  
• WTEN/WXXA Albany, NY (10.2, and 19.2 on WTEN satellite WCDC, are both free - that actually expands WXXA's reach)
  

Remaining shelled stations on the LIN side:

• KASA/KASY/KRQE/KWBQ Albuquerque (both 2.2 and 13.2 are free)
  
• KBIM/KRWE Roswell (satellites of KASA/KRQE; 6.2 is free; 6.3 could also be used to simulcast another signal?)
  
• KSNT/KTKA Topeka (requires 27.2, 27.3 and 27.4 to accommodate all the signals, although the Fox signal has a separate KTMJ-CD)
  
• KXAN/KNVA Austin (14.2 and 36.2 are both free and both could be used)
  
• WDTN/WBDT Dayton (2.2 is free as just an SD simulcast of 2.1)
  
• WKBN/WYTV Youngstown (requires 27.2, 27.3 and 27.4 to accommodate all the signals, although the Fox signal has a separate WYFX-LD)
  
• WPRI/WNAC Providence - Grandfathered LMA
  

There is also the WJBF/WAGT issue with Schurz but that is a different topic of discussion.

 

These are all compliant. With today's divesture announcement(s) this transaction now can move forward towards approval/closing with no further changes*. Quotes from the most recent Comprehensive Exhibit submitted as a part of the application.

 

Media General JSA/SSA's:

"Post-Merger Media General will be controlled by the Existing Media General shareholders upon consummation of the Transaction, the only change to the corporate structure of Existing Media General created by the Transaction is the insertion of two additional companies between Existing Media General and its shareholders. As a result, this portion of the Transaction (existing Media General stations) involves only a pro forma transfer of control requiring the filing of appropriate FCC Form 316 applications. While not related to the long-form transfer applications for the LIN stations, the applicants note that license subsidiaries of Existing Media General are also parties to grandfathered joint sales and shared services agreements by which those subsidiaries provide services to WAGT(TV), Augusta, Georgia; WLAJ(TV), Lansing, Michigan; and WXXA-TV, Albany, New York."

 

• In other words the current MG JSA/SSA's aren't necessarily a part what is being reviewed by the FCC. They were already approved by the FCC prior to the MG/LIN merger and since the MG stations aren't a part of the long-form application can continue. However, they will still have to unwind the JSA's or re-structure prior to the deadline of June 19, 2016 IF they are non-compliant.
  

 

 

LIN LMA's:

"LIN are parties to two grandfathered (pre- 1996) local marketing agreements (“LMAs”). The stations receiving services under the grandfathered local marketing agreements are: KNVA(TV), Austin, Texas and WNAC-TV, Providence, Rhode Island"

 

• As they are grandfathered LMA's those can continue without the need for any changes.
  

 

 

LIN JSA's:

"LIN subsidiaries are also party to four currently non-attributable joint sales agreements that will continue to be non-attributable pursuant to the two-year grandfathering period provided in the Commission’s April 15, 2014 order (“JSA Order”) attributing joint sales agreements involving the sale of more than 15% of another local station’s ad time at such time that the JSA Order becomes effective. The stations for which LIN is providing joint sales services are: KTKA-TV, Topeka, Kansas; WBDT(TV), Springfield, Ohio; WTGS(TV), Hardeeville, South Carolina; and WYTV(TV), Youngstown, Ohio. The agreements are unaffected by the Transaction, which involves no changes to the agreements or the parties thereto."

 

• In other words the current LIN JSA's technically compliant. The three remaining LIN JSA's don't need to be unwound or re-structured as they were entered into prior to the "JSA Order" so, they are grandfathered for the two-year grace period. They will be allowed to continue as is. However, they will still have to unwind the JSA's or re-structure prior to the deadline of June 19, 2016 IF they are non-compliant.
  

LIN SSA's:

"In addition, certain LIN subsidiaries are parties to five non-attributable shared services agreements. The stations to which LIN is providing such services are: KASY-TV/KWBQ(TV)/KRWB-TV, Albuquerque, Santa Fe, and Roswell, New Mexico; KTKA-TV, Topeka, Kansas; WBDT(TV), Springfield, Ohio; WTGS(TV), Hardeeville, South Carolina; and WYTV(TV), Youngstown, Ohio. These agreements are unaffected by the Transaction, which involves no changes to the agreements or the parties thereto, and the applicants are not proposing to enter into any new agreements with another local station in these markets. Accordingly, these applications comply with the terms of the Commission’s new Application Processing Guidelines released March 12, 2014."

 

• In other words the current LIN SSA's already compliant. The current LIN SSA's already comply with the guidelines regarding contingent financial agreements, option agreements, etc. And, All SSA's are currently "non-attributable". So, They will be allowed to continue and be "non-attributable" towards ownership limits of the new post-merger Media General.
  

 

*Pending renewal of all the satellite station waivers and failing station waivers.

 

 

 

...Well, this is interesting.

 

Sinclair. I said immediately that Sinclair would be involved because both companies were using a mutual broker, Moelis & Co. I'm not sure why Sinclair decided to dump Colorado Springs, though the shedding of the lone wolf in Tampa makes a lot of sense. Providence is a real surprise, though Sinclair of course is no stranger to New England with their Portland station WGME, as well as their one-time ownership of WGGB and WLWC. WJAR is going to be run very differently; here it is evident that the grandfathered LMA dictated a course of action for MG. WTGS is a perfect fit for Sinclair; even the calls make it sound like a heritage SBG station.

 

Hearst. Welcome to the party at long last; you've finally realized you need to bulk up. Birmingham actually fits Hearst pretty well given their presence in some other Southern markets, such as Jackson, Greenville SC, and Orlando. WJCL fits with Hearst's expansive ABC station portfolio.

 

Meredith. See: KVVU, KPTV. A new market, sure, but it works. Meredith can run a good Fox affiliate.

 

We must beg the question: How will Hearst and Sinclair handle the split of WTGS from WJCL?

 

"Media General said it will structure the transactions, along with its previously announced purchase of WHTM Harrisburg, Pa., to maximize tax efficiencies." — Like-kind exchanges here?

 

That's why MG/LIN and Sinclair swapped stations instead of Sinclair buying them outright. It explains why the randomly through in Colorado Springs...they had to even things up or, at least get them close.

[cbs4dallas 17]

BREAKING NEWS!!!!

 

Looks like the spinoffs are in order.

 

Here's the breakdown, courtesy of TVNewsCheck.

 

MG will buy Sinclair's WTTA in Tampa & KXRM/KXTU in Colorado Springs. In exchange, Sinclair will acquire WJAR in Providence & WLUK/WCWF in Green Bay. Sinclair will also acquire certain assets & rights to WTGS, owned by Vaughan Media.

 

We already know that Meredith will acquire WALA in Mobile.

 

And guess what y'all, HEARST!!!! will be acquiring NBC affiliate WVTM in Birmingham & WJCL in Savannah.

It looks like an acquisition party here!

[lugnuts6 89]

So, the WLNS/WLAJ (abc-CW) will still be until say 2016 when they will have to be unwound right ???

By the way , I notice (via web stream) that the Young broadcasting stations (now under the MG ownership) STILL use the Young broadcasting copyright graphic..

[tyrannical bastard 3442]

Originally, I was on the bandwagon that Raycom buying into Mobile was a given. But their lack of activity in the recent M&A craze changed my opinion on the matter. I figured Meredith would be a factor somewhere in the deal, and it ended up being with WALA.

 

The real game changer with Mobile is how Media General is going to use WFNA going forward. There's going to have to be some period of transition for WFNA to move their operations from WALA's facility over to WKRG's since WFNA has been intertwined with WALA for over a decade going all the way back to Emmis. I think expanded newscasts are going to be coming because it will now afford WKRG to counter-program WALA in the mornings (from 7-9am) and at 9pm. Maybe even a "Scene" prime-access show like WSPA has put on for several years.

 

Of course, WKRG is going to have to step up in terms of staffing and program inventory to pull this off, both of which they have been lacking for years. Some of the shows WFNA already airs may be kept in the merger, but any duplicate WALA programming (like 2nd runs) will likely be dropped.

 

Meredith owning WALA could be interesting, and it could shift the direction of the product, especially in the mornings. WALA's current morning newscast is pretty straight forward and devoid of fluff and filler; basically repeating the news and weather over the course of 4 1/2 hours with time and traffic updates peppered in. Since Meredith is more of a female focused company, I would expect a lot more "news you can use" features, and more "around the town" live shots. The line is firmly drawn between their morning news and their lifestyle show "Studio Ten", but it could be blurred especially if they take the "Better" approach, a la CBS 46 with their "Better Mornings Atlanta".

And prepare yourselves for the "Surprise Squad".....