Sinclair Broadcast Group

The recent flurry of buying and selling TV stations is being fueled by an improving economy and more availiable credit. For many buyers, the focus is not on the large markets: “We believe there are many more opportunities to acquire quality assets and to unlock hidden value in both the middle and small markets,” says Sinclair CEO David Smith. And the activity shows no signs of slowing down.

The Wells Fargo Securities analyst says the group’s recent purchases of 29 stations in 19 markets are sound moves. “We like SBGI’s scale, leverage and opportunistic approach to M&A and anticipate there is more to come.”

Sinclair Broadcast Group announced Thursday that it reached agreement with DirecTV on a new retransmission consent agreement and “has entered into a short-term extension of its existing agreement in order to allow the parties to enter into a formal agreement.” As a result, DirecTV will continue to carry all the Sinclair stations.

Sinclair is paying $99 million, less $4.3 million of working capital adjustments, for network affiliates in El Paso, Texas; Johnstown-Altoona, Pa.; Reno, Nev,; and Wheeling, W.Va.

DirecTV accused Sinclair Broadcast Group of attempting to “frighten” subscribers in 47 markets with its threat to pull 87 stations that carry programming from Fox, ABC, CBS, NBC and other networks unless it agrees to pay increased retransmission consent fees.

Sinclair Broadcast Group has begun to warn DirecTV customers that its 87 stations in 47 markets may go dark on the No. 1 satellite broadcaster after Feb. 28 when their carriage contract expires. “Although DirecTV and Sinclair have been negotiating for quite some time in an effort to reach a new agreement, at this time it does not appear that these efforts will be successful,” Sinclair’s telling viewers in Baltimore.

The broadcaster is spending $8 million to convert the news operations at its WKEF-WRGT ABC-Fox duopoly as part of its push to upgrade all its news producing stations. Now there are only three left to go.

David Amy, the group’s CFO, tells analysts that “our philosophy has been to look toward Big 4 stations and adding on where we have an existing property. We see quite a bit of benefit or opportunity there. We’ll continue to be aggressive if and when they [opportunities] come up.”

Local net broadcast revenues, which include local time sales, retransmission revenues, and other broadcast revenues, were up 33.7% in the fourth quarter 2012, while national net broadcast revenues, which include national time sales and other national broadcast revenues, were up 58.8% versus the fourth quarter 2011.

The buyer of WLWC is OTA Broadcasting, a speculator that has been buying TV stations in anticipation of reselling their spectrum to the government in an eventual auction to wireless carriers. Sinclair is the seller of the CW affiliate, which is among the seven it acquired last year from Cerberus Capital for $200 million.

Wells Fargo Securities media expert Marci Ryvicker says in the wake of the station acquisitions the group has made in the last year, “we think Street estimates are too low on just about every metric.”

In a new deal with Newport Television, Sinclair is adding an ABC affiliate in upstate New York. That came as Sinclair closed on other Newport stations and other transactions.

Like Sinclair Broadcast Group, Dish Network is pushing some cash out to shareholders this month, anticipating that whatever agreement comes out of the current talks in Washington will mean higher tax rates in 2013.

Deerfield LLC is buying WUTB from Fox, but has made a deal that will let Sinclair operate the MNT affiliate through joint sales and shared services agreements.Sinclair already runs Fox affiliate WBFF and CW affiliate WNUV.

Multiple sources say Barrington Broadcasting’s 24 stations in 15 markets are for sale and that Sinclair and Nexstar are finalists among the bidders.

Sinclair’s Mark Aitken says adoption in the the next 3-5 years of ATSC 3.0 is crucial to broadcast TV, giving it the ability “not only to meet the needs of delivering lots of bits to the home, but delivering lots of bits to portable devices. I don’t think it’s just about 4K; it’s about portability.” The new standard would “catapult broadcasting into the middle of the distribution” universe where it could compete with other TV media and provide a seamless service as viewers move in and out of their homes watching big-screen TVs, tablets and phones.

The group owner’s engineering VP, Del Parks, says that while strategy and tactics are continually evolving for how to best incorporate desktops, laptops, tablets and smartphones, they are an extension of the station’s brand, “and because eyeballs are definitely there, we have to be there.”

The group owner says the show, criticized by some as having an anti-Obama bias, was “hard-hitting, but it was fair.”

The company is paying out a $1-per-share special dividend to shareholders, in addition to the 60 cents per year the company already pays in quarterly installments. Sinclair execs tell analysts that fourth quarter net broadcast revenues are expected to be up 48.3% to 49.4% from a year ago to a range of $268.1 million to $270.1 million.

$27.8 million in political ad money, as well as strong gains in local, national and retrans, account for the increase.

Sinclair Broadcast Group announced today that due to Hurricane Sandy,  it will report its third quarter 2012 earnings results at 7:30 a.m. ET on Thursday, Nov. 1, followed by a conference call to discuss the results at 8:30 a.m. The earnings release and call had been set for tomorrow, Tuesday, Oct. 30.

Young Broadcasting, which is operating a CBS-MNT duopoly in Lansing, Mich., will soon make it a triopoly. It has a deal to take over the operation of WLAJ just as soon as Shield Media completes its purchase of the ABC affiliate from Sinclair for $14.4 million. Young and Shield worked together to create a duopoly for Young earlier his year in Albany, N.Y.

T-VIPS America Inc., announced today that Sinclair Broadcast Group purchased and installed several T-VIPS products as part of a network that allows the broadcaster to transport, monitor and process ASI […]

Sinclair Broadcast Group has filled its coffers with $500 million in cash, minus offering expenses. The money will be primarily used to fund its pending $412.5 million purchase of six […]

Sinclair Broadcast Group announced today that its wholly-owned subsidiary, Sinclair Television Group (STG), is making a private placement of $500 million in senior secured notes. The new notes are expected […]

Dish Network and Sinclair Broadcast Group reached a last-minute agreement Thursday to keep Sinclair stations from going dark for Dish subscribers.

Station  group owner Sinclair Broadcast Group is giving some fair warning about upcoming carriage negotiations with satellite TV provider Dish Network: Things are not going so well. Sinclair’s retrans deal with Dish is due to expire on Aug. 15.

COO Steve Marks tells analysts that “political is expected to be up 85% through the third quarter and we believe that we will exceed the $34 million of political reported in the fourth quarter of 2008. And yes, that 85% number is a same-station number.

Increases across the board in local, national, political and retrans drive the $220 million in revenue. The board authorizes a 25% dividend increase to 15 cents per share.

Providence Equity Partners LLC is close to a deal to sell the bulk of its portfolio of Newport Television stations to three broadcasting companies for a total of just over $1 billion, according to people familiar with the matter, the Wall Street Journal is reporting. Nexstar plans to buy the bulk of the 24 stations. 

The broadcast group owner opts for StationView Essentials rather than renew contracts with Nielsen in Salt Lake City, West Palm Beach, Providence and Austin. It says it will consider “similar moves in other markets when our contracts with Nielsen come up for renewal in the near future.”

The new affiliation deal runs through 2017 and includes an option for Sinclair to buy Fox’s Baltimore MNT affiliate WUTB, while giving Fox the option to buy three MNT stations from Sinclair. For the WBFF Baltimore renewal and WUTB option, Sinclair is paying up to $53 million.

Political ad money powers the gain, aided by a 26% increase in local revenue, including retrans.

Sinclair is now using Harris OSi media software solution to manage business operations at 73 stations. The new Magellan Network Management System allows monitoring and controlling content creation, aggregation, playout and delivery across multiple facilities. For all that’s going on at NAB 2012, click here.

In a letter to the FCC, the station group’s general counsel, Barry Faber, answers claims made in an earlier statement by Mediacom CEO Rocco Commisso.

Sinclsir Broadcst Group completed its $385 million acquisition of eight Freedom Communications stations.

The group owner promotes the news director of its WBFF Baltimore to lead news operations at its 41 news-producing stations.

A mere two-and-a-half years after facing the possibility of massive loan defaults, Smith has guided his group of 68 stations into financial security and positioned it to capitalize on the improving economy. Sinclair has whittled down debt and corresponding leverage ratios significantly, all while steadily upgrading station technology and striking deals that expand its scope and scale. It’s bought 15 stations since last September and is ready to buy more if the deals are right.

CEO David Smith says: “There’s a fundamental disagreement between the Democrats and Republicans” over spectrum auction legislation and he sees no action likely in three-to-five years. He and other execs at the company say this year is shaping up to be a record on-year for political revenues at Sinclair and they have great expectations for the role super PACs will play.