Morris Network pays $16.5 million for the ABC affiliate in Lexington, WTVQ. The sale is part of Media General's spin off of five stations that is intended to reduce debt and hold unhappy shareholders at bay.
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MEDIA GENERAL COMPLETES SALE OF KENTUCKY TV
Media General Inc. said Tuesday that it has completed the sale of WTVQ, the ABC affiliate in Lexington, Ky., to the Morris Network for $16.5 million.
“We are pleased to complete the sale of WTVQ and we will use the proceeds immediately for debt reduction,” said CEO Marshall Morton in a prepared statement. “We thank our former employees for their dedicated service and wish them well.”
Media General, which has been under pressure from dissident shareholders, has also agreed to sell WMBB, the ABC affiliate in Panama City, Fla., and KALB, a NBC/CBS station in Alexandria, La., to Hoak Media. The price tag on that deal is $60 million.
BRAND CONNECTIONS
Additionally, the sales of two other stations, WCWJ, the CW affiliate in Jacksonville, Fla., and WNEG in Toccoa, Ga., “are progressing,” the company said.
When the sales of all five stations are completed, Media General expects to realize total proceeds of $100 million to $105 million and use the after-tax proceeds to reduce debt by $60 million to $65 million.
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