The addition of Intermountain West’s NBC affiliate will give Sinclair three stations in the market. One will be sold, with the programming moved to subchannels of the remaining two.
Sinclair Broadcast Group today agreed to buy NBC affiliate KSNV Las Vegas (DMA 42) from Intermountain West for $120 million.
Sinclair said the purchase price represents a 4.9x multiple of the average 2012-13 cash flow, including synergies. Subject to receipt of necessary regulatory approvals and the satisfaction of standard closing conditions, Sinclair said the transaction is expected to close in the first quarter of 2015.
Sinclair currently owns two other stations in Las Vegas, KVCW (CW) and KVMY (MNT). In order to comply with FCC ownership rules, the company said it intends to sell the FCC license and related assets (but not the programming) of one of the three stations. It did not identify which.
Sinclair will move the programming of the spun-off station to subchannels of the remaining two stations.
“We are pleased to add KSNV to our portfolio,” said Steve Pruett, Co-chief operating officer of Sinclair’s television group. “With the addition of the station, our news footprint will cover all the major cities in the state of Nevada, allowing us to be a leading provider of local and regional news.”
Wells Fargo Senior Analyst Marci Ryvicker’s take on the news was positive: Sinclair “is gaining a Big 4 affiliation in Las Vegas while still keeping programming for its other two networks, which sounds like a great deal at a great price,” she says. “This transaction also comes on the heels of a large station swap announced with Media General and LIN back on Aug. 20, so we think Sinclair is finding ways to improve and strengthen its portfolio through a better mix of stations.”