The deal includes Allbritton’s flagship WJLA, Washington’s ABC affiliate, and the NewsChannel 8 D.C. cable news network. To comply with FCC ownership rules, Sinclair will sell four of its current stations: WABM (MNT) and WTTO (CW) Birmingham, Ala.; WHP (CBS) Harrisburg-Lancaster-Lebanon-York, Pa.; and WMMP (MNT) Charleston, S.C. It says NewsChannel 8 "provides the perfect platform should we decide to expand it into other markets, especially given the amount of local news we produce across our entire portfolio.”
UPDATED
Sinclair Buying Allbritton Stations For $985M
Sinclair Broadcast Group today announced that it has entered into a definitive agreement to buy Allbritton Communications’ seven ABC affiliates for $985 million. The deal also includes NewsChannel 8, a 24-hour cable-satellite news network covering the Washington, D.C., metropolitan area.
Completion of the transaction is subject to the usual closing conditions, including approval by the FCC and antitrust clearance, as applicable. Sinclair said it anticipates that the transaction will close and fund in the fourth quarter of 2013. Sinclair also said it expects to fund the purchase price at closing through a bank loan and-or by accessing the capital markets.
The Allbritton stations to be owned and operated by Sinclair (with 4.9% U.S. coverage) are:
- WJLA ABC Washington (DMA 8)
- WBMA-LP ABC Birmingham-Tuscaloosa-Anniston, Ala. (DMA 42)
- WCFT ABC Birmingham-Tuscaloosa-Anniston, Ala. (DMA 42)
- WJSU ABC Birmingham-Tuscaloosa-Anniston, Ala. (DMA 42)
- WHTM ABC Harrisburg-Lancaster-Lebanon-York, Pa (DMA 43)
- KATV ABC Little Rock-Pine Bluff, Ark. (DMA 56)
- KTUL ABC Tulsa, Okla. (DMA 59)
- WSET ABC Roanoke-Lynchburg, Va. (DMA 68)
- WCIV ABC Charleston, S.C. (DMA 98)
In addition, Sinclair will acquire Allbritton’s NewsChannel 8, the region’s only 24-hour local cable/satellite news network dedicated to covering news, weather, sports and local information to over 2 million households in the Washington metropolitan area.
To comply with FCC local television ownership rules, Sinclair expects to sell its existing stations in:
- Birmingham, Ala. — WABM (MNT) and WTTO (CW)
- Harrisburg-Lancaster-Lebanon-York, Pa. — WHP (CBS)
- Charleston, S.C. — WMMP (MNT)
It added, however that it expects to provide sales and other non-programming support services to each of those stations pursuant to customary shared services and joint sales agreements.
BRAND CONNECTIONS
“We are thrilled to add the Allbritton properties to our growing portfolio and national footprint,” said David Smith, president-CEO of Sinclair. “To buy a full-blown news operation in our nation’s capital and an infrastructure that allows us to be connected to our branches of government and be at the pulse of national issues is a once-in-a lifetime event. We are especially excited to acquire the NewsChannel 8 local news channel, not only for the content it can provide our existing news stations, but moreover because their regional cable presence provides the perfect platform should we decide to expand it into other markets, especially given the amount of local news we produce across our entire portfolio.”
Including the Allbritton station acquisitions, all previously announced acquisitions, and pro forma for expected synergies, Sinclair said its 2011 and 2012 net broadcast revenues would have been $1.609 billion and $1.865 billion, respectively. The $985 million purchase price represents an 8.7x multiple of the average 2011-2012 cash flow including $21.5 million of operating synergies, which excludes any synergies associated with rolling out a national news cable channel.
In response to the news, Craig Aaron, president-CEO of the watchdog group Free Press, made the following statement: “The rapid expansion of Sinclair Broadcast Group — which is poised to double the number of stations it controls nationwide — is unwelcome news for local TV viewers. The company’s cookie-cutter approach to local news and repeated use of the airwaves to push a partisan agenda are well known. And the idea that one company should be allowed to control so many stations in so many markets is simply outrageous. What will it take for the FCC to wake up?
“Sinclair has exploited loopholes and laziness at the FCC to build its empire. The FCC needs to scrutinize these proposed deals and stop allowing covert consolidation through shared services agreements that allow Sinclair to run two or even three stations in a single market. In particular, it should require stations Sinclair has indicated it will put up for sale as part of this deal to be sold to independent competitors, not Sinclair front groups.
“Viewers need competing newsrooms and access to a range of viewpoints on local issues. And that means they need the FCC to ditch its rubber stamp and start doing its job to preserve localism, competition and diversity.”
Comments (36)
none none says:
July 29, 2013 at 9:56 am
What do you think this says about ABC’s commitment to broadcast television that they did not end up with WJLA in Washington?
Jill Hatzioannou says:
July 29, 2013 at 10:08 am
It probably says that Albritton wanted to sell the entire group and ABC wasn’t much interested in owning stations in the other, much smaller markets.
Linda Stewart says:
July 29, 2013 at 3:32 pm
Plenty,
Shenee Howard says:
July 29, 2013 at 10:06 am
Unbelievable, a sad day for broadcast television. Sinclair is way too big as it is, flaunts FCC rules, and operates stations in their own interests, promotes their own values, and is a cost cutting operation.
Diane Tryneski says:
July 29, 2013 at 11:06 am
So they’re just like most station groups in this country.
Meagan Zickuhr says:
July 29, 2013 at 4:35 pm
AGREED! AND THEY WILL BE THE ONES TRAMPLING ALL OVER LPTV WHEN THE REPACK OCCURS… AND YET, THEY CLAIM TO BE ‘FRIENDS OF LPTV’.
Brad Dann says:
July 29, 2013 at 10:11 am
Why is it constantly asserted that SInclair “Flaunts FCC rules” when the FCC approves these transactions before they can move forward?
Patrick Paolini says:
July 29, 2013 at 10:28 am
Can someone tell me a company that is NOT looking to be a profitable entitity? Sinclair is not a cost cutting operation? They just bought an antena company that was about to go out of business just so the market can continue to have the product. That company is NOT a profitable one, but Sinclair saved it. I think this is a good day for broadcast television. Sinclair flaunts no rules, its always above board. Sinclair is also JUST in the TOP 5 broadcast companies in terms of size, how is that TOO BIG?
alicia farmer says:
July 29, 2013 at 10:39 am
There goes the neighborhood. Good news for WJLA competition. Very bad news for Allbritton employees.
Raymond Lee says:
July 29, 2013 at 11:02 am
Folks at WRC, WBRC, KOTV and KTHV are cheering; the gates just re-opened for them to regain first place in their respective markets.
WJLA, after YEARS in the wilderness, is putting out a first-rate product. But can Sinclair service it’s monumental debt AND continue to pay Leon Harris, Maureen Bunyan, Gordon Peterson, Doug Hill and Tim Brant their big-ticket salaries? Is it willing to pony up for marquee talent such as James Spann (Birmingham) and Scott Inman (Little Rock)?
Sinclair may not be FLOUTING (the correct word) the rules in letter, but it certainly is in spirit. Can’t argue with the price,though. Compared to what these stations would have fetched, collectively, ten years ago–Sinclair picked up Albritton at a Fire Sale.
Diane Tryneski says:
July 29, 2013 at 11:09 am
WRC is already the number one station in DC.
larry bonko says:
July 29, 2013 at 12:33 pm
KOTV has been the overwhelmingly dominant station in Tulsa for over a decade now, ever since meters were introduced in 2000. KTUL struggles to finish third.
Roger Lyons says:
July 30, 2013 at 2:25 am
I’m certain KJRH isn’t making strides as a Scripps station with their mediocre “home-grown” fare (including the awful show “The List,” which they decided would be a good lead-in to NBC primetime). If KTUL is finishing third, is KOKI second?
Sheila Lindsay says:
September 18, 2013 at 12:06 am
That’s incorrect information. KOTV is #1 in most programs and demos. KTUL is #2 in most programs and demos. KOKI and KJRH battle it out for 3 & 4.
wendy l kaiser says:
July 29, 2013 at 2:49 pm
ABC O&O is Not Happy Sinclair Broadcasting Group is Buying WJLA-TV AND Lose Live Well Network Subchannel if FCC Appoved.
none none says:
July 29, 2013 at 3:12 pm
If ABC was truly committed to OTA broadcasting they would have done a deal for the group, with a side deal in place to spin off the stations they did not want/need.
Jill Hatzioannou says:
July 29, 2013 at 4:26 pm
Assuming they could have put together a deal, with the side deal in place, how would that have shown that ABC/Disney is committed to OTA broadcasting?
none none says:
July 29, 2013 at 3:13 pm
…and keep WJLA in Washington
antonio berretta says:
July 29, 2013 at 5:15 pm
Here is the only question that should be asked…Where is the FCC?????
antonio berretta says:
July 29, 2013 at 5:17 pm
I would take Sinclair over Nexstar anyday
Roger Lyons says:
July 30, 2013 at 2:27 am
Sinclair does invest in programming, but neither Sinclair or Nexstar invest in news. At least Nexstar doesn’t inject biased editorial segments in their newscasts.
Todd Barkes says:
August 5, 2013 at 2:19 pm
Last I counted, 72 News operations directly attributable (90 if you include News Shares…but I am not counting them). Tell me how we don’t invest? Is there anyone else out there that thinks that News comes for Free?
Joanne McDonald says:
July 29, 2013 at 7:10 pm
Finally:
One Message: Sinclair Broadcasting Group under David Smith will turned into the Paramount Pictures of the 1940’s with way way too too many antitrust issues that Sinclair fails to ever learn from when Paramount Pictures had the supreme dominance of owning and controlling the movie theatre chain with excessive block booking and Sinclair would have the ability to do block booking in the broadcasting industry by forcing the cable systems to only allow them to carry the in market stations in the markets Sinclair already owned controlled stations prior to 2010 and after 2010 by blocking them from being allowed to carry the out of markets stations affiliated with the same network as the in market station owned and controlled and being in the process of being owned and controlled by Sinclair. Sinclair will be the Garfield’s cats, the Cookie Monster’s, and the Miss Piggy’s as well as trying to be the General Tire/RKO General of the 1960’s to the 1980’s, and the Southern Methodist University football team of the 1980’s of the broadcasting industry of owning and controlling way way too too many TV stations that they are trying to owned and control. This does hurt and bother me very much since Sinclair planned of buying and controlling KPTM/KXVO, and KPTH/KMEG that are within my territory.
All the fans of the Allbritton broadcasting chain will gonna need me for help with the transaction to Sinclair ownership by the start of 2014.
Sinclair likely transfer WTTO and WDBB to Cunningham, WABM and WMMT to Deerfield and give up KRCG, KHQA, KTVO , WYZZ, WHP, WSYT, and WNYS to Mission/Nexstar with Nexstar giving up WUHF to Sinclair. WABM could air all of WBMA LD/WJSU/WCFT programming on their DT 2 channel to better serve the TV viewers in the Birmingham inner city proper.
My concessions to the Sinclair acquisition is that they would fully allow Walt Disney/ABC to buy WJLA, KOMO, and KATU, allow Tribune to have KTVI and WGHP being able to fully regain the ABC affiliation on those station with KPLR and KWGN both under Tribune and WXLV under Sinclair switching to FOX and KWGN sister station KDVR/KFCT under Tribune and KTVI /KPLR competitor KDNL under Sinclair switching to CW, the FCC should allow all cable, satellite, and Aereo to carry all the out of market station with the same affiliation in the markets Sinclair already owned and controlled stations prior to 2010 and after 2010 as the in market station owned and controlled and being in the process of being owned and controlled by Sinclair without any restrictions, interference, and difficulties and also be allowed to continue to carry the out of market station that it’s digital television signal is reachable by a outdoor antenna including both it’s SD and HD feeds on the cable, satellite, and Aereo service system for 12 whole years to meet FCC rules and regulators.
Keith ONeal says:
July 29, 2013 at 9:29 pm
Chirp, Chirp, Chirp. We all knew that it was either Sinclair or Disney/ABC buying WJLA and NewsChannel 8 anyway, so what’s the fuss?
Warren Harmon says:
July 30, 2013 at 1:25 am
James has Impeccable Grammar . . . lol
Keith ONeal says:
July 29, 2013 at 9:34 pm
Maybe Sinclair will turn around and sell WJLA (and NewsChannel 8) to ABC/Disney is ABC is REALLY interested to have a O&O in D.C.
Brad Dann says:
July 30, 2013 at 8:13 am
You need to consult your tax attorney, almost no price would make selling WJLA profitable for Sinclair, the tax liability passes to Sinclair from Allbritton by an all stock sale. This is why Robert was adamant about selling the group as a whole. A sale by Sinclair of any Allbritton station would trigger a tax liability that would eat most of the proceeds of any sale. Just won’t happen unless Sinclair gets in a cash crunch and is forced by creditors to liquidate assets.
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