It gets $17.1 million for WBXX Knoxville, Tenn.; WBDT Dayton, Ohio; and WCWF Green Bay-Appleton, Wis.
Acme Completes Three Station Sales
Acme Communications announced today that it has completed the sale of WBXX Knoxville, Tenn. (DMA 59); WBDT Dayton, Ohio (DMA 62; and WCWF (formerly WIWB) Green Bay-Appleton, Wis. (DMA 71).
WBXX was sold to Knoxville TV LLC on May 6. The FCC licenses, programming agreements, and related assets for WBDT were sold to WBDT Television, LLC. WCWF and the remaining WBDT assets were sold to units of LIN Television Corp. The WBDT and WCWF station sales were completed on May 20.
The aggregate sales price for the three stations was $17.1 million. All three stations are CW affiliates.
The WBDT and WCWF sales reflected the exercise of an option by LIN, which had assigned certain purchase rights for WBDT to WBDT Television LLC. LIN exercised its right under an option agreement with Acme to pay approximately 50% of the combined purchase price with its common stock and issued the company 1,150,000 unregistered shares. Resale of these shares is restricted.
Acme said it is expected that the shares will be sold by the company after a six-month holding period expires in November. Additionally, upon consummation of the sale of the stations, Acme repaid deferred programming payment obligations for the three stations in the aggregate amount of $2.2 million to four of its program suppliers.
Acme also funded from the proceeds approximately $3.2 million into an escrow account in connection with its ongoing litigation with MMT, LLC, its former national advertising sales representative. Net cash proceeds, after transaction costs and the aforementioned program payments and escrow funding, were about $5.4 million.
Doug Gealy, Acme president-CEO, commented: “The completion of these three sales was an important step in unlocking value and liquidity for our shareholders, and we expect to announce a return of capital to our shareholders in an amount equal to a meaningful percentage of these net cash proceeds within the next 30 days. We will also continue to look for ways to prudently monetize the rest of our assets.”