It’s paying OTA Broadcasting $21 million for NBC affiliate KMIR and MNT affil KPSE-LD. Spectrum speculator OTA bought the two from Journal in 2014 for $17 million.
Entravision Communications Corp. today said it has an agreement with spectrum speculator OTA Broadcasting to pay $21 million for NBC affiliate KMIR and MyNetworkTV affiliate KPSE-LD, both in Palm Springs, Calif. (DMA 146).
Over the past several years, OTA Broadcasting, backed by billionaire computer retailer Michael Dell, bought independent stations with an eye toward selling the spectrum back to the government in the FCC’s incentive auction. It bought KMIR and KPSE-LP from Journal Broadcast Group in 2014 for $17 million.
Entravision said that including anticipated synergies, “the transaction represents an attractive purchase price multiple of less than 6.5 times expected blended 2016-2017 pro forma broadcast cash flow, is expected to be immediately free cash flow accretive and is expected to be funded on a tax efficient basis with proceeds from the FCC broadcast incentive auction ….”
It added that the deal is expected to close in the fourth quarter following FCC approval.
Walter F. Ulloa, Entravision chairman-CEO, said: “Palm Springs is a growing and vibrant market that we know very well and have served for more than 20 years. Our existing television and radio assets located in the market have helped us build strong relationships with the Palm Springs community and our local news programming, Noticias Ya, is highly rated. We are excited to add KMIR’s impactful and significant local news presence to our portfolio in Palm Springs. This is a strategic transaction that is extremely attractive on a financial basis, allowing us to broaden the services we provide the Palm Springs market and positions us to continue to build on the success of KMIR and KPSE.”
Bill Tolpegin, Chief Executive Officer of OTA Broadcasting, said, “We are grateful for the hard work and dedication of KMIR’s terrific employees during our ownership of the station. We are confident that Entravision will be a great new home for the station and its team, and look forward to following their continued success.”
Entravision currently owns and operates the market’s UniMas and Univision affiliated TV stations (KVER-CD, KEVC-CD and KVES-LD) and KLOB-FM and KPST-FM in Palm Springs.