DMA 42

Sinclair Buying KSNV Las Vegas For $120M

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.”


Comments (18)

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Marcelo Gama says:

September 3, 2014 at 9:14 am

The bigger they are, the harder they (eventually) fall.

Kate Waxley says:

September 3, 2014 at 9:30 am

It’s a great market for Sinclair to have a duopoly. The price was right. That market has a lot of upside.

    Roger Lyons says:

    September 3, 2014 at 9:58 am

    Sinclair ALREADY had a duopoly in Las Vegas, albeit not one with a major network.

Roger Lyons says:

September 3, 2014 at 10:03 am

I find it hard to believe they will keep the license facilities of KSNV. Low-VHF is not desirable for DTV, and Sinclair LOVES UHF.

    Sean Smith says:

    September 3, 2014 at 4:23 pm

    True, low V’s are not digital-friendly (KSNV’s digital channel is 2, virtual 3), but UHF digital is only economical when you’ve got a huge distance to cover. Basically, the Las Vegas metro is all of Clark County, and digital Channel 2 covers that very effectively. Viewers in the surrounding counties probably add up to less than all the viiwers in the entire city of Henderson. Sinclair might love U’s, but a U doesn’t help them outside Clark County, which is covered well with a low digital V.

    Diane Tryneski says:

    September 3, 2014 at 5:13 pm

    Used to live there and was about 25 miles from the tower. Never had a problem picking up the signal with a indoor antenna. Although KSNV is the only low V, ABC, CBS, FOX and PBS are all using VHF channels.

Don Thompson says:

September 3, 2014 at 3:30 pm

Last week, Sinclair cried about the Comcast-Time Warner Cable mergers in a 25-page rant filed with the Federal Communications Commission. If Sinclair were truly worried about this deal, how can it justify the purchase of the NBC affiliate in Las Vegas to its shareholders right now, with the merger still pending? Not for the first time, a TV #cashcasters has shameless sold a major whopper to either the FCC or Wall Street investors ………………… Please follow me on Twitter @TedatACA

    Wagner Pereira says:

    September 3, 2014 at 3:57 pm

    Hey Ted, unlike you, smart business people do not hide in fear of the future. They make their destiny with the cards given them, while trying to obtain a fair playing field, something you and the ACA have failed to provide………………… Please follow me on Twitter @NotTedatACA

    Maria Black says:

    September 3, 2014 at 4:25 pm

    As they should, because Comcast-Time Warner is about a zillion times bigger than their deals and will be even worse for retrans negotiations. There are only a couple major players in the cable game, but there are 3,000 TV stations around the country. There are NO ownership caps for cable, nor is there a rule about the maximum percentage that you’re able to reach with cable. And they can justify the purchase of an NBC affiliate in Vegas because that’s the best performing station in the market with a great history. Their shareholders are looking at the $$$. And DON’T follow me on Twitter.

    Michael Ford says:

    September 3, 2014 at 4:30 pm

    Ted, you’re officially the creepy old uncle that complains about buying an Edsel instead of a Packard. When you start getting ESPN for free and don’t pass along any cable channel costs to your viewers, then you have an argument about Broadcast stations, until then, stay focused on reality and understand that Dish or Direct TV can replace your cohorts in a heartbeat.

    Wagner Pereira says:

    September 3, 2014 at 5:37 pm

    Don’t forget Verizon Wireless that wants to become a MVPD via LTE Multicast, that can replace all the small ACA members.

Don Thompson says:

September 3, 2014 at 6:20 pm

Look at it this way: Nearly 90% of Sinclair’s problems with the Comcast-Time Warner Cable merger would evaporate if Congress passed the Rockefeller-Thune Local Choice proposal. In fact, it would not surprise me to see Sinclair ask the FCC to impose the Rockefeller-Thune Local Choice formula on Comcast-Time Warner Cable as a merger condition it could rely on in case it didn’t like the retrans fees Comcast was offering — of course, while continuing to fight Local Choice on Capitol Hill so @nabtweets and the TV cashcasters can continue to gouge the customers of brave and noble small cable operators …………… Please follow me on Twitter @TedatACA

    Wagner Pereira says:

    September 4, 2014 at 3:45 am

    TWC SEC’s filing show 2013 Video Revenues of $10.481Billion and Programming costs of $4.950 Billion, or 47.2% of total revenue. How much is ACA proposing their members cut the bills under Rockefeller-Thune…………… Please follow me on Twitter @NotTedatACA

    Darrell Bengson says:

    September 4, 2014 at 9:34 am

    Ted and his twisted view of reality…does anyone even take him for real?

John Pappert says:

September 3, 2014 at 7:36 pm

Given poetic license to lie. They would say this! … Sinclair said the purchase price represents a 4.9x multiple of the average 2012-13 cash flow, including synergies. Now thats really inventive, I would put it another way! Deals are actually made like this! Sinclair will pay the Company Executive Management the £120m as an incentive,then the actual Stations multi-billion dollar assets get disolved and free from Corporate structured fiscal policy,and ends up in a joint beneficary accounts in the sold executives names,then the Buyer will take up incoming revenue to re-coup the poultry price within about one Month. Am i fooled into believing that this particulare “small” station isnt earning at least half a billion bucks per annum? Now heres the trickiest bit! The word multiple is the “misnomer” its foxing the reader in reverse,for the Station would earn around 4.9x more per annum that the selling price. Now the Magic Hat trick is all about what happens to the sold companies assets! aaaaah!

    Wagner Pereira says:

    September 4, 2014 at 3:42 am

    Yes, you are delusional thinking that KSNV is earning “at least a half a billion bucks per annum”.

    Darrell Bengson says:

    September 4, 2014 at 9:33 am

    He seems to be one of those that believe Broadcasters use the airwaves for free and the cost of doing business is unrealistic small with no competition out there..delusional doesn’t even cut it to describe him

    Michael Ford says:

    September 4, 2014 at 12:42 pm

    Your comment does say given poetic license to lie and you accomplished all of that in short order. At least try to do some research before you rant next time, you might just figure out something worth sharing.

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