Update: Tribune to acquire Local TV for 2.75 billion

[tw-804 190]

 

Sounds like KTVI's old building in St. Louis. It's just sitting around collecting dust.

 

They were talking about demolishing it as part of some development but that got shelved during the Financial Crisis.

 

It was demolished in February.

 

http://www.stltoday.com/entertainment/television/old-ktvi-building-comes-tumbling-down/article_0ac3b24b-adda-53fb-b054-e7f40407bbf5.html

[Rusty Muck 4309]

I have been pondering the schematics of a swapping arrangement with Fox and Tribune over the past day.

 

Fox probably wants from Tribune three stations: WPHL (to pair up with WTXF), and the KPCQ/KZJO duopoly. They also probably want to purchase KWGN and KPLR outright so as to ensure Fox/My duopolies in both markets. (Unless Fox decides to sell KTVI outright to Tribune so they can have a legit KTVI/KPLR duopoly.) Maybe Fox tries to get KTXL and KSWB, but WPHL, KPCQ and KZJO (and KWGN and KPLR) make the most sense right off the gate.

 

What I'm wondering about, though, are the stations Fox might give to Tribune to make this work. Does Tribune want from Fox KTBC, WHBQ and/or a combination of either WJW, KSTU, WGHP or WITI (and possibly KTVI), along with the legacy NYT stations + WTVR... or do they just want the legacy NYT stations + WTVR?

 

Out of the former and current O&Os that Fox could offer, I can see KTBC, WHBQ, KSTU and WITI going to Tribune, with WJW and WGHP (and KTVI) either going to Tribune or staying with Fox. (I'd be on the fence with WJW and WGHP because WJW is still in a top 20 market - #17 Cleveland/Akron/Canton - and WGHP is close to the WJZY/WMYT duopoly in Charlotte.) But all - excluding WJW - are outside the top 20 markets. Is this enough to get Tribune to part ways with three, possible five, major stations in their portfolio?

 

I guess it depends on how much Tribune wants to realign themselves at this point (all the while waiting for a cash infusion via the sale of the newspaper division).

 

Either way, we could see a very significant broadcast realignment here. Of course this is all predicated on a massive IF.

[mre29 1359]

The talk about KWGN and KTVI's old buildings makes me wonder what happened to WLVI's old building after Sunbeam bought the station.

[sanewsguy 509]

 

The talk about KWGN and KTVI's old buildings makes me wonder what happened to WLVI's old building after Sunbeam bought the station.

 

It sat largely vacant for about 6 years. It even had the old "Boston's WB" logo on the outside still. But now it's getting converted to a car dealership and should be open by the fall. Also, I didn't know WHDH owned the building until I read the first article. Pretty interesting read if you get a chance.

http://www.dotnews.com/2012/chambers-looking-buy-ch-56-site-bmw-outlet

http://www.boston.com/yourtown/news/dorchester/2013/02/hold_morrissey_boulevard_bmw_d.html

 

Out of the former and current O&Os that Fox could offer, I can see KTBC, WHBQ, KSTU and WITI going to Tribune, with WJW and WGHP (and KTVI) either going to Tribune or staying with Fox.

Please no. I like KTBC, last decent newscast left in Austin. This is usually the station I watch when I make the trip up I-35 to Austin. Sometimes I even stream them live at 9 since their product is far better than the blood and guts KABB puts out. Unlike KABB (and most other Fox affiliates), they actually cover real news and not just recount every other shooting, accident, and fire that happened today. I don't really see them maintaining high standards under Tribune like they have now.

[Mrtraveler01 737]

 

It was demolished in February.

 

http://www.stltoday.com/entertainment/television/old-ktvi-building-comes-tumbling-down/article_0ac3b24b-adda-53fb-b054-e7f40407bbf5.html

 

I stand corrected.

 

Now that I think of it, I do remember seeing this article back in February.

[A3N 996]

 

Tribune still owns the KWGN building.

 

Although an LMA can always be unwound it's pretty rare. In this example the staff has been totally integrated, I assume onto the Local TV payroll. I would think alot of of the equipment was sold off. Tribune was in bankruptcy at the time and hard up for cash. So, I'd think anything they could sell they did. Also, wasn't the set moved, too.

 

So, really if they were to "undo" the LMA I'd have to think it would be a "worst case senerio" at this point. It would basically involve building the station back from the ground up. Great they have the building. But, now they need to re-staff it, buy new equipment, pay for a new set, etc. At what point does it become worth it? IDK, But I got to think given the expense they would try to work out something with their partner before going going that route.

 

And, if Tribune did go "nucular" and end the LMA it wouln't be rebuilding just one station, but two. That's alot of cash to lay out. Whoever, Tribune's new partner is will have them by the short hairs. Sure they could always say "screw it ,we're out." But, I think it would take alot of really unreasonable demands from the new LMA partner to tip the scales in favor restarting the station. Unfortunately, from a logistical and financial standpoint it just doesn't make sense unless their hand is really forced (which would take alot, I'm afraid.)

 

Somewhat related, but when KNSD was producing KSWB's newscasts for about three years or so (when they were still affiliated with the WB/CW), KNSD received some of KSWB's equipment. I believe I read that the equipment was still labeled with KSWB branding, but when the newscast arrangement ended, KNSD returned the equipment. When KSWB affiliated with FOX, Tribune spent quite a bit of money building the station up from scratch. The only thing that they went cheap on was the set, which used recycled pieces from the old set integrated with some new elements, but I have to give them props because they were the first station in San Diego to broadcast in HD from the field.

 

I have been pondering the schematics of a swapping arrangement with Fox and Tribune over the past day.

 

Fox probably wants from Tribune three stations: WPHL (to pair up with WTXF), and the KPCQ/KZJO duopoly. They also probably want to purchase KWGN and KPLR outright so as to ensure Fox/My duopolies in both markets. (Unless Fox decides to sell KTVI outright to Tribune so they can have a legit KTVI/KPLR duopoly.) Maybe Fox tries to get KTXL and KSWB, but WPHL, KPCQ and KZJO (and KWGN and KPLR) make the most sense right off the gate.

 

What I'm wondering about, though, are the stations Fox might give to Tribune to make this work. Does Tribune want from Fox KTBC, WHBQ and/or a combination of either WJW, KSTU, WGHP or WITI (and possibly KTVI), along with the legacy NYT stations + WTVR... or do they just want the legacy NYT stations + WTVR?

 

Out of the former and current O&Os that Fox could offer, I can see KTBC, WHBQ, KSTU and WITI going to Tribune, with WJW and WGHP (and KTVI) either going to Tribune or staying with Fox. (I'd be on the fence with WJW and WGHP because WJW is still in a top 20 market - #17 Cleveland/Akron/Canton - and WGHP is close to the WJZY/WMYT duopoly in Charlotte.) But all - excluding WJW - are outside the top 20 markets. Is this enough to get Tribune to part ways with three, possible five, major stations in their portfolio?

 

I guess it depends on how much Tribune wants to realign themselves at this point (all the while waiting for a cash infusion via the sale of the newspaper division).

 

Either way, we could see a very significant broadcast realignment here. Of course this is all predicated on a massive IF.

 

KSWB and KTXL make sense for FOX because they are run pretty lean and they can share resources with KTTV and KSAZ. Plus it would give FOX a nice little cluster on the West Coast.

[MidwestTV 1177]

I personally don't really see Tribune buying anything. Selling, yes. Buying, no.

[Mrtraveler01 737]

 

I personally don't really see Tribune buying anything. Selling, yes. Buying, no.

 

At least not until they sell off some of their newspapers.

 

I think the broadcasting part of the company is doing fine, it's the newspaper segment that's dragging Tribune down.

[Thundershock MN 169]

One other quick note. AFAIK the KPLR/KTVI building is leased and the lease was transferred to Local TV when they took over ops. I don't know this as 100% fact. But, since Local TV is the managing partner and Tribune was in financial disarray (and would want the lease off the books) it makes sense.

 

So, that would really leave Tribune further out to dry if the LMA ended. Hence, why I see that only as a last resort.

 

 

I have been pondering the schematics of a swapping arrangement with Fox and Tribune over the past day.

 

Fox probably wants from Tribune three stations: WPHL (to pair up with WTXF), and the KPCQ/KZJO duopoly. They also probably want to purchase KWGN and KPLR outright so as to ensure Fox/My duopolies in both markets. (Unless Fox decides to sell KTVI outright to Tribune so they can have a legit KTVI/KPLR duopoly.) Maybe Fox tries to get KTXL and KSWB, but WPHL, KPCQ and KZJO (and KWGN and KPLR) make the most sense right off the gate.

 

What I'm wondering about, though, are the stations Fox might give to Tribune to make this work. Does Tribune want from Fox KTBC, WHBQ and/or a combination of either WJW, KSTU, WGHP or WITI (and possibly KTVI), along with the legacy NYT stations + WTVR... or do they just want the legacy NYT stations + WTVR?

 

Out of the former and current O&Os that Fox could offer, I can see KTBC, WHBQ, KSTU and WITI going to Tribune, with WJW and WGHP (and KTVI) either going to Tribune or staying with Fox. (I'd be on the fence with WJW and WGHP because WJW is still in a top 20 market - #17 Cleveland/Akron/Canton - and WGHP is close to the WJZY/WMYT duopoly in Charlotte.) But all - excluding WJW - are outside the top 20 markets. Is this enough to get Tribune to part ways with three, possible five, major stations in their portfolio?

 

I guess it depends on how much Tribune wants to realign themselves at this point (all the while waiting for a cash infusion via the sale of the newspaper division).

 

Either way, we could see a very significant broadcast realignment here. Of course this is all predicated on a massive IF.

OK, since this is providing some good discussion and debate I'd like to add a few points. This is working with strictly the Fox/Tribune/Local TV discussion.

 

1. I don't see Fox buying Local TV whole. If anything I see them buying the FoxCo holding portion of Local TV at most. FoxCo is all the old O&O's + WTVR. WTVR is in there by virtue of the swap Local TV made.

 

2. AFAIK, The STL market doesn't have enough full power stations to allow for a true duopoly. So, an LMA would be needed. Would either company be interested in setting up a "shell" IDK. But, I think that's unlikely. And as I stated I don't think they will disolve the LMA. So, your stuck working with your partner.

 

So, operating with the premise that Tribune & Fox now have to work together it opens up the window for discussions...

 

3. As I've stated Fox would love to have KCPQ/KZJO along with WPHL In the fold. I'd think all of the Local TV stations (minus KTVI/KDVR) + WHBQ & KTBC will be put on the table. The discussion would basically be: "Here you go. What combo out of these stations would work for you and essentially get you equal cash flow in order to part with the three aforementioned stations."

 

4. Fox could offer up services to Tribune to help entice them, too. They could offer the services of the graphics hub for example. Most of them are using variations or knock offs of them anyway. And, if you have to work together anyways why not give them all the "Fox Look."

 

5. Lastly, WRT newspapers. Let's not forget Rupert has a new publishing company, the "new" News Corp. He set that company up so it has no debt and a large cash pile when the split happens. Hmmm...how convenient! And, He's expressed interest in the Tribune papers in the past. So, Put another way: Rupert to Tribune Execs "Since we are here having discussions. I can help you out with those papers, too."

[Mrtraveler01 737]

 

2. AFAIK, The STL market doesn't have enough full power stations to allow for a true duopoly. So, an LMA would be needed. Would either company be interested in setting up a "shell" IDK. But, I think that's unlikely. And as I stated I don't think they will disolve the LMA. So, your stuck working with your partner.

 

I'm not well versed on the regulations concerning that but there are 7 full power stations in St. Louis (5 Commercial, 1 religious, 1 educational/PBS).

 

I think you're right in thinking an LMA will be needed if KTVI/KPLR continue under new ownership.

 

 

 

3. As I've stated Fox would love to have KCPQ/KZJO along with WPHL In the fold. I'd think all of the Local TV stations (minus KTVI/KDVR) + WHBQ & KTBC will be put on the table. The discussion would basically be: "Here you go. What combo out of these stations would work for you and essentially get you equal cash flow in order to part with the three aforementioned stations."

 

Fox tried to get into the Seattle market back in the 1990's when it tried to buy KIRO from Cox. Back then Fox was disgruntled with their relationship with KCPQ. However since it's been run under Tribune, I think the relationship has gotten better.

 

So Fox already has a history of wanting to enter the Seattle market so it's not far fetched to see Fox go after KCPQ if it's put up for sale.

[WXmanTim 88]

 

 

3. As I've stated Fox would love to have KCPQ/KZJO along with WPHL In the fold. I'd think all of the Local TV stations (minus KTVI/KDVR) + WHBQ & KTBC will be put on the table. The discussion would basically be: "Here you go. What combo out of these stations would work for you and essentially get you equal cash flow in order to part with the three aforementioned stations."

 

 

I don't see them offering Austin as part of any deal. It's a mid-sized market with growth potential and fits well with the other Texas O&Os, which rely on it for coverage of central Texas and the capital.

 

If NewsCorp (and/or "21st Century Fox") were interested in getting rid of KTBC, they would have done so during the last sell off cycle.

 

Memphis, yes. It's an island unto itself in slow-growth and/or declining market. I believe it would have been part of the deal to Local TV if not for WREG.

 

But beyond Seattle and Philly, I don't see any station on Tribune's list Fox would be interested (or legally allowed) to own out-right. Maybe San Diego and Sacramento, but I think that's stretching it.

 

Same with Local TV. Not much there aside from their old O&Os.

[FirstNews8 13]

Here is my thing, Doesnt one of the Local TV stations house the entire companies Digital Operations Center? Now, this was awhile ago, so things may have changed, but to me this is why I could see them trying to give it up as an entire package, because if Local where to divide it up, each station would need some major equiptment purchases. Now, I could be wrong, and the centralized DOC could be extinct, but this to me would be a reason for Local trying to give it up as a one package deal, then making it someone elses problem down the road.

[GoldenShine9 1509]

 

Here is my thing, Doesnt one of the Local TV stations house the entire companies Digital Operations Center? Now, this was awhile ago, so things may have changed, but to me this is why I could see them trying to give it up as an entire package, because if Local where to divide it up, each station would need some major equiptment purchases. Now, I could be wrong, and the centralized DOC could be extinct, but this to me would be a reason for Local trying to give it up as a one package deal, then making it someone elses problem down the road.

 

If a package deal, there aren't too many companies with the resources to buy the entire portfolio, since the cost would likely be around $2 billion.

[Ntropolis 593]

 

Here is my thing, Doesnt one of the Local TV stations house the entire companies Digital Operations Center?

 

Yes, WTKR, and it goes back to the New York Times days.

 

[Thundershock MN 169]

Someone can correct me if I'm wrong. But, I don't believe any of the old Fox o&o's + WTVR were ever added to The DOC w/ their old NYT brothern. I'm pretty sure if seen openings for MC operators at the various individual stations over the years, fairly recently too if my memory serves me correct.

 

The DOC is really only of value to station group looking to start (or add another) hub. Most of them would much rather shift those MC ops to their own current hubs.

 

All that said, it's really not the end of the world to "dehub" a station. There are plenty of examples. If Oak Hill sees they will make more money selling individually or, in prices that's what they will do.

[ABC 7 Denver 1600]

 

Wow. I hope it gets some use again, it sounds like a waste of a decent facility.

 

Was its distance from Denver proper ever a problem for them?

 

I'm sure!

[Brother 82]

 

I'm not well versed on the regulations concerning that but there are 7 full power stations in St. Louis (5 Commercial, 1 religious, 1 educational/PBS).

 

I think you're right in thinking an LMA will be needed if KTVI/KPLR continue under new ownership.

 

 

St. Louis has eight total stations - 7 commercial licenses (2-4-5-11-24-30-46), and one educational (9).

 

There's also Daystar's WPXS Channel 13 - though licensed to Mount Vernon, IL at the northern edge of the Paducah DMA, its transmitter is well within the St. Louis DMA.

[Rusty Muck 4309]

Last I checked, WJW still has their MC running at their 5800 South Marginal Road studios. Only thing that ever really changed was the automation of the chroma key operators - that took place at the same time longtime VO Bill Ward was dismissed.

 

Of course, if Fox buys it back and retains it, the MC will be moved to Vegas... but it's still in Cleveland, for now. (Does Tribune centralize their MC operations at all?)

 

I can't recall any standardization or centralization by LocalTV for the former Fox O&Os. Outside of the Tribune Interactive-designed websites, of course... and the current LocalTV websites are Wordpress-hosted.

[Rusty Muck 4309]

If a package deal, there aren't too many companies with the resources to buy the entire portfolio, since the cost would likely be around $2 billion.

Thundershock MN brought up the FoxCo holding portion of LocalTV that contains the former Fox O&Os + WTVR (which I forgot) that makes me wonder if it is even possible to sell the group off as a whole. I guess it can still happen...

[CircleSeven 1945]

And now TVNewsCheck is posting that a senior analyst of a leading investment bank is speculating value estimates of the Local TV LLC & Allbritton stations. For example he estimate that it the Local TV could fetch up from $2B to $2.3B. For the Allbritton, he estimate that it could be between $595M to $1.028B. WJLA by itself could fetch around the $400M range.

 

The article also list most of the other past M&As dating back to the 2011 Liberty Media sale of WFRV/WJMN to Nexstar.

[TheRob 920]

 

Last I checked, WJW still has their MC running at their 5800 South Marginal Road studios. Only thing that ever really changed was the automation of the chroma key operators - that took place at the same time longtime VO Bill Ward was dismissed.

 

Of course, if Fox buys it back and retains it, the MC will be moved to Vegas... but it's still in Cleveland, for now. (Does Tribune centralize their MC operations at all?)

 

I can't recall any standardization or centralization by LocalTV for the former Fox O&Os. Outside of the Tribune Interactive-designed websites, of course... and the current LocalTV websites are Wordpress-hosted.

 

Yes, the former FOX O&Os still have individual master control and graphics. Traffic is consolidated: we do both our traffic and KSTU's, for example.

 

A lawyer friend of mine who has a lot of experience in carriage negotiations thinks FOX will buy back the former O&Os, by the way.

[Thundershock MN 169]

 

Yes, the former FOX O&Os still have individual master control and graphics. Traffic is consolidated: we do both our traffic and KSTU's, for example.

 

A lawyer friend of mine who has a lot of experience in carriage negotiations thinks FOX will buy back the former O&Os, by the way.

 

Would you be willing to elaborate? Is it just a hunch, some inside info, or a theory? Just curious since it's a take from someone kinda on the outside of the industry (albeit indirectly.)

 

Also, were there any whispers of groups coming through touring your station (or, sister stations) to size up a purchase?

 

You provide us an interesting point of view being at a Local TV station. However, If you are not willing to (or can't) share I totally understand.

 

 

Also, I hope this sale goes though soon. So, you and your co-workers are no longer on edge as to what the future holds.

[Rusty Muck 4309]

A lawyer friend of mine who has a lot of experience in carriage negotiations thinks FOX will buy back the former O&Os, by the way.

Do note that Fox handled carriage renegotiations for the former Fox O&Os - on LocalTV's behalf - last year.

 

So it's not as if your lawyer friend is unfamiliar with the situation.

[Thundershock MN 169]

Do note that Fox handled carriage renegotiations for the former Fox O&Os - on LocalTV's behalf - last year.

 

So it's not as if your lawyer friend is unfamiliar with the situation.

I'm almost 100% sure Fox has always negotiated on Local TV's behalf for all the old Fox O&O's. For example, during the Dish/Fox dispute in 2010 all the former O&O's were lumped into negotiations at the same time.

 

I believe this is partly why FoxCo was arranged as a separate but wholly owned subsidiary of Local TV. Fox/News Corp could then handle negotiations by proxy for the FoxCo portion of the company.

 

PS - I think your link is broken. I can't get it to work, at least on my mobile phone.

[TheRob 920]

 

Would you be willing to elaborate? Is it just a hunch, some inside info, or a theory? Just curious since it's a take from someone kinda on the outside of the industry (albeit indirectly.)

 

Also, were there any whispers of groups coming through touring your station (or, sister stations) to size up a purchase?

 

You provide us an interesting point of view being at a Local TV station. However, If you are not willing to (or can't) share I totally understand.

 

 

Also, I hope this sale goes though soon. So, you and your co-workers are no longer on edge as to what the future holds.

 

 

Do note that Fox handled carriage renegotiations for the former Fox O&Os - on LocalTV's behalf - last year.

 

So it's not as if your lawyer friend is unfamiliar with the situation.

 

Considering how many sales some co-workers have experienced, it's just business as usual. I have not personally seen anyone touring the station, and I suspect that won't happen until after a sale is announced.

 

The lawyer says it's his feeling, based on back-channel chatter. He has negotiated for affiliates of all four networks, but not the former FOX O&Os, nor the current Local TV LLC. stations.