Former Tribune exec Wilson's Dreamcatcher Broadcasting is buying WNEP Wilkes-Barre/ Scranton, Pa., and WTKR-WGNT Norfolk-Portsmouth-Newport News, Va., The deal is necessitated by Tribune's need to spin off the recently purchased stations because it owns newspapers in those markets. It will operate them, however, under shared services agreements.
DMAS 44 & 54
Ed Wilson Buying 3 Tribune TVs For $27M
To stay in compliance with the FCC’s broadcast-newspaper crossownership rule, Tribune is spinning off three of the 19 stations it is acquiring from Oak Hill Partners — ABC affiliate WNEP Wilkes-Barre/ Scranton, Pa. (DMA 54), and WTKR-WGNT Norfolk-Portsmouth-Newport News, Va. (DMA 44), a CBS-CW combo — but Tribune will continue to operate them under a shared services agreement.
The buyer of the stations is Dreamcatcher Broadcasting, owned by Ed Wilson, a former president of Tribune Broadcasting and former chief revenue officer of Tribune Co.
Dreamcatcher is paying $27 million for the stations, according to a July 15 FCC filing seeking approval of the deal.
The deal includes an option that will allow Tribune to buy back the stations “under specified circumstances.”
When asked about the transaction, Tribune issues the following statement:
“In light of the FCC’s regulations regarding crossownership, we began taking the steps necessary to ensure the company is in compliance in two relatively small markets where, upon the closing of our acquisition of Local TV, we would otherwise own both a television station and a newspaper.”
BRAND CONNECTIONS
Among the Tribune newspaper holdings are The Morning Call in Allentown, Pa., and Daily Press in Newport News, Va.,
Tribune Co. announced on July 1 an agreement to buy 19 stations operating as Local TV LLC from Oak Hill Capital Partners for $2.7 billion.
Comments (5)
Just Fine says:
August 2, 2013 at 4:33 pm
Something about that deal smells fishy. This is how the story reads to me: Tribune sold three networks they just bought as part of a group to a guy with Tribune roots and a company nobody has ever heard of for less then a 20th of what each network is worth with an option to buy back the channels. Plus Tribune will continue to operate the three channels. This seems a bit shady to me.
Joanne McDonald says:
August 2, 2013 at 4:42 pm
I’d favor a 3 way swap with KRON(regains NBC affiliation) to NBC, KNTV(goes independent with KOFY getting MYNET affiliation) to Tribune, and WGHP, and WTVK/WGNT to Media General, Gannett giving KMSB/KTTU to Tribune with Gannett gaining KDAF to form a duopoly with WFAA, KIAH to form a duopoly with KHOU, KFSM/KXNW, WTVR, and WDCW to form a duopoly with WUSA, and Tribune giving WHNT to LIN for to gain KOIN to form a duopoly with KRCW.
Dennis Bragg says:
August 2, 2013 at 8:23 pm
Once Tribune Publishing Company is spun off into it’s own separate entity Tribune will buy those 3 stations back in under full ownership. Since legally Tribune Publishing will not be related (Name Only) to Tribune Company. Although they will have common shareholders in the banks that own the New Tribune after bankruptcy.
Jeff Hovendon says:
August 3, 2013 at 4:23 pm
James, how many times do I have to tell you, nobody cares what you “would favor”, ESPECIALLY the heads of major broadcasting companies or even guys like me who, unlike you, are actually employed in broadcasting.
Bill Vernon says:
August 4, 2013 at 1:51 pm
James, Seriously, Shut the f&*@ up! NO ONE CARES on what you think on how these station transactions go!