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Cox sells majority TV interest to Apollo


The Frog

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No chance.

 

If NBC (stupidly, I must add) sold their well-performing and strong O&Os in Columbus, Ohio and Raleigh, two top 30 markets, what makes you think that they’ll want a station in a bottom 20s market?

 

They even attempted to sell WTVJ and WVIT a few years ago.

 

NBC hasn’t bought an NBC station since 1995 when they picked up WJAR, WVTM, WNCN and WCMH from Outlet and later 2002 when it picked up KNTV. The only purchases they’ve been making have been for Telemundo.

 

They made an abortive attempt to buy WHDH but we all know how that turned out.

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The Herald-Whig and the WGEM stations?

 

I figured there were a still few out there. Perhaps the most notable was when the Wolfe Family sold off the Columbus Dispatch and kept WBNS. Cox's combos in Atlanta and Dayton are historic and have been together for their entire existence in TV, not to mention grandfathered from the regulations that forbade them without some form of waiver.

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They made an abortive attempt to buy WHDH but we all know how that turned out.

NBC was never going to get a station that the owner was never going to sell, let alone an owner whose station is the main tenant at a prime office building he also happens to own.

 

That attempt was DOA from the get-go.

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As far as the grandfather status in both Atlanta and Dayton those are a non-issue since the NBCO rule was eliminated last year if, for example, Hearst wanted to acquire both newspapers in Atlanta and Dayton and WSB/WHIO they can do so no problem now that the NBCO rule is gone, if the FCC had kept the NBCO rule that would be an issue imo

 

I thought that rule change only affected TV-and-radio combos. But you're basically saying that if, for example, Hearst wanted to buy stations in Houston, San Antonio, and San Francisco, they could even though they own newspapers in those cities?

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Okay it’s known I’m a fan of WBAL. But I have ask why is Hearst included in that list? They are relatively small compared to the others and aside from going private they haven’t done much nice then. They’re the only one that hasn’t acquired a significant amount (more than the two recent ones) nor have merged. No one thought Cox would do this so what would stop Hearst?

 

The minute I posted that, I started to question why I put Hearst in there too. They're in quite a few more markets than Cox (28 vs. 10), but fewer big market gems. It is still family-owned, and the TV stations are probably a rounding error compared to the rest of the company's assets. I don't mean to speculate too much, but I could see how maybe they'd split up the broadcast and publishing into separate companies before selling any or all of them off (not unlike what Belo and Gannett did.)

 

I still think Sinclair, Nexstar, Tegna, Gray, and Scripps are all in it for the long haul. They're all gobbling up stations, and I can see how some of the smaller station groups would end up in the hands of those guys sooner rather than later.

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The minute I posted that, I started to question why I put Hearst in there too. They're in quite a few more markets than Cox (28 vs. 10), but fewer big market gems. It is still family-owned, and the TV stations are probably a rounding error compared to the rest of the company's assets. I don't mean to speculate too much, but I could see how maybe they'd split up the broadcast and publishing into separate companies before selling any or all of them off (not unlike what Belo and Gannett did.)

 

I still think Sinclair, Nexstar, Tegna, Gray, and Scripps are all in it for the long haul. They're all gobbling up stations, and I can see how some of the smaller station groups would end up in the hands of those guys sooner rather than later.

I agree with everything except, I think there will be 2 more groups that'll still be around. Obviously, the networks will still have their O&O groups while Hearst and yes, Standard General will be around as well for the long haul

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The minute I posted that, I started to question why I put Hearst in there too. They're in quite a few more markets than Cox (28 vs. 10), but fewer big market gems. It is still family-owned, and the TV stations are probably a rounding error compared to the rest of the company's assets. I don't mean to speculate too much, but I could see how maybe they'd split up the broadcast and publishing into separate companies before selling any or all of them off (not unlike what Belo and Gannett did.)

 

I still think Sinclair, Nexstar, Tegna, Gray, and Scripps are all in it for the long haul. They're all gobbling up stations, and I can see how some of the smaller station groups would end up in the hands of those guys sooner rather than later.

 

I get what your saying and at the same time I’m understanding why you originally included them even if I can’t explain why.

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I still think Sinclair, Nexstar, Tegna, Gray, and Scripps are all in it for the long haul. They're all gobbling up stations, and I can see how some of the smaller station groups would end up in the hands of those guys sooner rather than later.

 

Scripps hasn't bought any stations since 2015. That's hardly "gobbling up stations"...

 

I agree with everything except, I think there will be 2 more groups that'll still be around. Obviously, the networks will still have their O&O groups while Hearst and yes, Standard General will be around as well for the long haul

 

Technically, Standard General has yet to even arrive.

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Some clarification here: https://www.rbr.com/cox-on-the-block-ajc-confirms-possible-tv-station-sale/

 

What Cox is not doing, Guthrie tells RBR+TVBR, is outright divesting the properties. “We are looking not to sell our stations, but to pursue a merger or partnership,”

 

One thing that I find interesting is if Cox was interested in selling their stations outright, why not say so right off the bat? Their emphasis on "a merger or partnership" is clear throughout the press releases. It sounds like the birth of a new company with whomever they merge with. As others have said, it isn't a coincidence this announcement comes a week after the Sinclair merger with Tribune was sent to an ALJ. I wouldn't count a Cox/Tribune merger out just yet. It also isn't a coincidence this comes after the courts ruling on the ownership cap.

 

The next few weeks will definitely be interesting.

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Some clarification here: https://www.rbr.com/cox-on-the-block-ajc-confirms-possible-tv-station-sale/

 

 

 

One thing that I find interesting is if Cox was interested in selling their stations outright, why not say so right off the bat? Their emphasis on "a merger or partnership" is clear throughout the press releases. It sounds like the birth of a new company with whomever they merge with. As others have said, it isn't a coincidence this announcement comes a week after the Sinclair merger with Tribune was sent to an ALJ. I wouldn't count a Cox/Tribune merger out just yet. It also isn't a coincidence this comes after the courts ruling on the ownership cap.

 

The next few weeks will definitely be interesting.

 

 

So it sounds like my theory of Cox doing a Hearst-Argyle type deal isn't totally out of the question.

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Some clarification here: https://www.rbr.com/cox-on-the-block-ajc-confirms-possible-tv-station-sale/

 

 

 

One thing that I find interesting is if Cox was interested in selling their stations outright, why not say so right off the bat? Their emphasis on "a merger or partnership" is clear throughout the press releases. It sounds like the birth of a new company with whomever they merge with. As others have said, it isn't a coincidence this announcement comes a week after the Sinclair merger with Tribune was sent to an ALJ. I wouldn't count a Cox/Tribune merger out just yet. It also isn't a coincidence this comes after the courts ruling on the ownership cap.

 

The next few weeks will definitely be interesting.

 

It’s interesting but it sounds like whatever happens Cox will not be the leadership or senior partner in this if they merge. It seems like a nice way of saying “we are selling”.

 

I do wonder what they mean by partnership? Them retaining the stations but join up with another group to handle and have more leverage on things like affiliate renewals, FCC compliance, retransmission consent, hubbinggasterl and traffic? Along with the smaller things like hubbing graphics and sharing correspondents.

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I really don't see WPXI becoming an NBC O&O. Odds are either Nexstar, Tegna or Scripps comes in and buys them.

 

I believe with the Steelers and Penguins shown on NBC A LOT and we have the highest sports ratings for most cities in the NBC Portfolio that are not owned by the Network, Comcast would be at least considering Buying WPXI so it has a strong sports presence in a strong sports market. If Comcast Passes, Scripps is the 2nd best option. It would also be nice to hear and see WPXI's news open in Scripps font and graphics as well as Steven Arnold Music's "Inergy" like WEWS and WCPO.

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It’s interesting but it sounds like whatever happens Cox will not be the leadership or senior partner in this if they merge. It seems like a nice way of saying “we are selling”.

 

I do wonder what they mean by partnership? Them retaining the stations but join up with another group to handle and have more leverage on things like affiliate renewals, FCC compliance, retransmission consent, hubbinggasterl and traffic? Along with the smaller things like hubbing graphics and sharing correspondents.

As someone said, it would be best for Cox to merge with someone and take the tax burden off their shoulders and not go piecemeal (and besides they only have 14 stations so there's really no need for Cox to go piecemeal with their stations but, as we've seen with Newport anything is possible)

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Well, if you believe the group's worth $2.65 billion, that takes a lot of companies out of the running to grab it all at once, save for (New) FOX.

 

Cox may have to do it piecemeal, even if one of those pieces is a huge chunk, which I imagine is why they're leaving open the possibility they may not do it at all.

 

BTW: It is not out of the question Cox sells to Sinclair. They did it to a large chunk of their PA / WV cluster, as well as KFOX. Sinclair is on pins and needles ATM but if they can weather the hearing, they definitely could do this instead of Trib.

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BTW: It is not out of the question Cox sells to Sinclair. They did it to a large chunk of their PA / WV cluster. Sinclair is on pins and needles ATM but if they can weather the hearing, they definitely could do this instead of Trib.

 

If they do that, we'll be hearing that "dangerous to our democracy" bullsmoke on WSB and WFTV and WSOC, among others, and I dread to think what that'll be like!

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How does selling the stations piecemeal create a tax burden for Cox but selling all fourteen together not do that?

It's like bundling with cable. The more stations they sell at once, the lower the tax burden for each station.

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Well, if you believe the group's worth $2.65 billion, that takes a lot of companies out of the running to grab it all at once, save for (New) FOX.

 

Cox may have to do it piecemeal, even if one of those pieces is a huge chunk, which I imagine is why they're leaving open the possibility they may not do it at all.

 

BTW: It is not out of the question Cox sells to Sinclair. They did it to a large chunk of their PA / WV cluster, as well as KFOX. Sinclair is on pins and needles ATM but if they can weather the hearing, they definitely could do this instead of Trib.

 

Sinclair would have huge conflicts in Dayton (where they already own the ABC and Fox affiliates) as well as Seattle (The FCC will never let them own both KIRO and KOMO). Tulsa is a question mark since that would just result in a duopoly (KTUL and KOKI).

 

No amount of sidecar trickery would be able to remedy this especially when you consider the fact that any transaction they make beyond the Tribune one will face a whole ton of scrutiny. I dont think Cox would want the headache that Tribune is currently having.

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Well, if you believe the group's worth $2.65 billion, that takes a lot of companies out of the running to grab it all at once, save for (New) FOX.

 

Cox may have to do it piecemeal, even if one of those pieces is a huge chunk, which I imagine is why they're leaving open the possibility they may not do it at all.

 

BTW: It is not out of the question Cox sells to Sinclair. They did it to a large chunk of their PA / WV cluster, as well as KFOX. Sinclair is on pins and needles ATM but if they can weather the hearing, they definitely could do this instead of Trib.

 

How funny would it be if Tribune decided to "partner" with Cox?

 

I don't think its likely even though the only possible conflict would be Seattle.

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