The E.W. Scripps announced this moring that it has a deal to buy two Granite Broadcasting stations -- ABC affiliate WKBW and MNT affiliate WMYD Detroit -- for $110 million in cash.
Scripps Buying Granite TVs In Buffalo, Detroit
The E.W. Scripps Co. today reaffirmed its commitment to broadcasting, acquiring ABC affiliate WKBW Buffalo (DMA 52) and MNT affiliate WMYD Detroit (DMA 11) from Granite Broadcasting for $110 million.
The acquisition of WMYD creates a duopoly with Scripps’ largest station, ABC affiliate WXYZ Detroit.
Upon closing, Scripps will own 21 stations reaching nearly 14% of U.S. TV homes. Its 11 ABC affiliates that will reach nearly 12%.
“These stations in Detroit and Buffalo will contribute strong cash flow to our core business, expand our reach in one of our best markets, and expand our TV footprint in partnership with ABC,” said Rich Boehne, Scripps chairman, president and CEO.
“Owning these stations also allows us to expand our newsgathering reach and our digital business and add more audiences for our original programs Let’s Ask America, The List and Right This Minute.”
The transaction is structured as a purchase of assets, and it will be funded with cash on hand, the company said. It is expected to be accretive to earnings in the first full year Scripps operates the acquired stations. The two stations together have about 100 employees.
The transaction is subject to regulatory approvals and is expected to close in the second quarter.
Scripps and Granite also have signed a time brokerage agreement, whereby Scripps will provide four to six hours of daily programming to WMYD until the deal closes.
“These two stations are a terrific fit for our TV portfolio,” said Brian Lawlor, senior vice president of television. “We love doing business in Detroit. WXYZ is one of our most important TV stations, and our ability to marry it with the MyNetworkTV station allows us to extend our commitment to that market and continue the conversation and the passion driving the renaissance of this great American city.
“We are equally enthusiastic about entering Buffalo for the first time in the company’s history. We have had decades of success running ABC stations along the eastern Great Lakes. We look forward to including Buffalo in our content and customer strategies that now run through Cleveland and Detroit.”