Hoak Media, which yesterday announced its purchase of KVLY, the NBC affiliate in Fargo, N.D., has a deal to manage the market’s CBS affiliate following its sale to Parker Broadcasting.
When all the deal making is done, Dallas-based Hoak Media will end up with the same NBC-CBS duopoly in Fargo, N.D., that Wicks Television now has there.
Currently,Wicks operates a “virtual” duopoly in the 118th-largest TV market. It owns the NBC affiliate, KVLY, and manages the CBS affiliate, KXJB, under a contract with its owner, Catamount Broadcasting.
But, yesterday, Hoak announced it is buying the NBC affiliate from Wicks. And, today, Parker Broadcasting announced that it would acquire the CBS affiliate, KXJB, from Catamount and then “enter into a strategic arrangement” with Hoak under which Hoak would handle local news, sales and “other administrative services.” In the end, Hoak would own one, control both as Wicks did.
Kelly Callan, of Kalil & Co., which help put the whole deal together, declined to discuss terms of either the Hoak-Wicks or the Parker-Catamount sale, saying they would come out later when the parties applied for FCC approval. “It was a substantial deal,” he said.
Hoak has a similar duopoly in Grand Junction-Montrose, Colo. (DMA 187). There it owns the CBS affiliate, KREX, and manages the Fox affiliate, KFQX, which is also owned by Parker.
Many broadcasters operate second stations in small markets through contractual arrangements because the FCC ownership rule prohibit outright ownership of more than one station in small markets.