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Update: Tribune to acquire Local TV for 2.75 billion


Jterry

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Well, seeing as LocalTV basically operated like Tribune Jr. I guess not much will be changing.

 

The whole reason a bunch of the LocalTV stations adopted bad knockoffs of the FOX O&O package was because LocalTV decided to standardize everyone onto VizRT systems over the Chyron systems that the O&O graphics were designed for. LocalTV stations were left to their own devices which left them building graphics on systems they didn't have much experience with, and we get to where we are today. I seem to recall someone at WITI saying they would have used the real O&O graphics when they went HD had they worked with their Viz system.

 

I'm going to remember all these "xxxx needs new gffx" posts when Tribune announces a new standardized graphics package (but really, with some of the graphics on the stations they just bought, who can blame them?).

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That, and KDVR can keep their distinctive look without being re-standardized back into the Fox O&O motif. That would have been awkward.

 

And not at all attractive.

 

I had a conversation with Kirk Yuhnke (Morning Anchor at KDVR) and Jeremy Hubbard (Evening Anchor at KDVR).

Me: Congrats on the acquisition! I'm excited for you and for our market! The transition should go fairly easily since the KDVR/KWGN LMA is in effect.

Kirk: Seems that way. Turns the LMA into an official duopoly. I don't pretend to know anything about the buyout but I am interested to see how it all plays out! I hear great things about Tribune.

 

 

 

@JeremyHubbard Congrats on the buyout! I hope the transition between Local & Tribune is smooth, thought it should be easier under the LMA.

 

 

 

 

 

@SamUnreel I doubt we'll notice any change at all. And I think we're all breathing a sigh of relief. Whew!

 

 

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That, and KDVR can keep their distinctive look without being re-standardized back into the Fox O&O motif. That would have been awkward.

 

Let's hope so. One of the nicer outcomes of the KWGN-KDVR merger was that both stations received nice, unique, in-house branding that fit those stations better than any of their previous outside packages did. Let's hope Tribune recognizes this. While I wouldn't be completely surprised if they went to a standardized look, I would imagine that doing so would be more difficult than other station groups considering that Tribune's stations are currently far more diverse in affiliations and branding than Gannett or Scripps ever were.

 

But also w/r/t Denver, I really hope they do something about the morning newscasts. The whole "two sister stations competing at the same time" thing doesn't work when viewers can change channels and see the exact same reports being introduced oftentimes with the exact same copy. The duopoly can't provide two distinct news products at the same time without them being clones of each other. Either KWGN should go for a fluffy format and bring some of Everyday's entertainment format to Daybreak, or they should scrap mornings altogether and perhaps look into making a go with a KCAL-style afternoon block.

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Modeling themselves on KCAL could be interesting...probably preferable to the trashy talk shows they currently fill the afternoons with.

 

(Also, I admit, I think it would be interesting to see them try running sitcoms or old cartoons where Daybreak is now.)

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B&C has a follow-up article on now the biggest merger of this M&A craze.

 

It explains about the 'UHF discount' and stating the 'name' of that third-party management company Local TV & The Trib was involved in.

 

But also w/r/t Denver, I really hope they do something about the morning newscasts. The whole "two sister stations competing at the same time" thing doesn't work when viewers can change channels and see the exact same reports being introduced oftentimes with the exact same copy. The duopoly can't provide two distinct news products at the same time without them being clones of each other. Either KWGN should go for a fluffy format and bring some of Everyday's entertainment format to Daybreak, or they should scrap mornings altogether and perhaps look into making a go with a KCAL-style afternoon block.

My big concern will folks watch the afternoon newscasts on KWGN? I mean Denver is not like Los Angeles. I agree that KWGN should focus on having like an 8am or 9am fluff show and eliminate the parallel early morning news format. Let KDVR do that heavy lifting in the morning. After all, which station is scoring the most revenue? It's a no brainer.
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My big concern will folks watch the afternoon newscasts on KWGN? I mean Denver is not like Los Angeles. I agree that KWGN should focus on having like an 8am or 9am fluff show and eliminate the parallel early morning news format. Let KDVR do that heavy lifting in the morning. After all, which station is scoring the most revenue? It's a no brainer.

 

It's a tricky situation, and the stations are obviously aware of it. I think most people there would like to see KDVR's Good Day be more news-focused while letting the lighter stuff stay on KWGN, where they've managed to keep most of their quirky morning staff. The problem is that I still haven't seen anything done to remedy the situation.

 

They do have a women-focused lifestyle/entertainment/talk "fluff show" called Everyday. It started out at 4pm on KDVR, then they moved it to 10am on KWGN following Regis and Kelly, and then they ultimately moved Regis and Kelly and Everyday to KDVR with Good Day as the lead in. It must have an audience and do well, as it's one of the few leftovers of the Dennis Leonard era of a few years ago. Perhaps moving it into the 7-9am slot on KWGN or doing a show with a similar ethos would work. You're right in that it would be difficult to get news viewers in the mid afternoon in any market that isn't Los Angeles, but I would be all for reducing the hours of either Daybreak or Good Day and putting them elsewhere. Bringing back the 11am news on KWGN, for instance, wouldn't be a bad idea, and it would mean one less hour of the two stations competing against each other with the same news content.

 

Though at the end of the day, maybe it doesn't mean much. After all, both morning shows do attract eyeballs (KWGN more than KDVR, but still) and must bring in some ad revenue. Maybe the status quo is the only thing that makes practical sense, though from a viewer's experience, anything that I listed above may have more potential interest than the clones that we currently have.

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In hindsight, this deal does make sense. I guess the most surprising part is most didn't expect Tribune to purchase such a valuable group whole with them just coming out of bankruptcy. If you want to be amused check out the early pages of this thread when the sale was first announced. Tribune was indeed discussed a good bit. Particular kudos to TennTV1983 for calling Tribune a dark horse almost immediately.

It is surprising; on one hand, it makes sense, but then, it is a bit of a shocker considering what Tribune has gone through the past six years. Tribune is a decent station owner (they have a few mushy apples in the bunch - like WPIX and KDAF, but they do run most of them quite well, like WGN-TV and KTLA). For KFOR and KAUT, it was the best outcome. Heck, even for KOKH, it was the best outcome. Of the stations Sinclair had before its rabid buying spree, KOKH and WICD are the only ones that still produce their news in SD. If Sinclair got their hands on KFOR/KAUT, it would have given Sinclair an out to shut down KOKH's news department and turn over news production to KFOR (whose morning and 9 p.m. newscasts it produces for KAUT compete with KOKH's). Sinclair claims that it wants to keep it newer Big Four duopolies separate (as with KABB and WOAI or WEAR amd WPMI), but I think they might have made an exception had they gotten KFOR.

 

The way it came out, Oklahoma City will still have five news operations (among six stations; 5 English stations, if KAUT is counted in, plus one Spanish); so it's a win-win. Tribune also cemented Antenna TV's future with the deal: if Nexstar had bought any of the stations, it would have most likely dropped Antenna from them (there is some truth to the rumor that Nexstar isn't keen on digital subchannels, even though the company does have subchannels affiliated with diginets like Bounce TV here and there, plus carriage of major networks in a few markets, mostly rebroadcasting stations whose signals don't cover the market adequately enough like with KNWA and KFTA). It would be hard for Antenna TV to find new affiliates in a few of the markets had that scenario played out.

 

Given that Tribune is taking over Weigel Broadcasting's stake in This TV, Tribune might start moving the network to the soon-to-be-former Local TV stations after the sale closes and once This' existing agreements with other stations expire. This TV has already been on two OKC stations, KOCO had it first through Hearst's now-defunct deal with the network for a year-and-a-half, then it moved to KSBI the same day that station joined MyNetworkTV last September (KSBI preempts much of the overnight classic shows for religious, outdoor and lifestyle shows, and whatever airs from 9-11 (or 11:30) a.m. weekdays for a block of mostly court shows produced by Byron Allen that used to air on the main channel, as well as the Friday primetime films for Rangers games produced by KTXA - preemptions that didn't happen when This was on KOCO).

 

I agree. Another example might be WXYZ(Scripps)/ABC.

One note along the same lines. TV News Check's article points out this little tidbit. "One of the key synergies: Tribune will pay no reverse compensation through 2018 to Fox for the seven Fox stations acquired in the deal."

Also, In the article they state Tribune will have four independent stations after the deal closes. They reiterate the point later in the article stating "Those stations include news-producing independent stations in New York, Chicago and Los Angeles." Umm...did I miss something and Tribune gave up the CW affiliation on their flagships? Or, is Tv News Check attempting to predict the future?

Actually, TVNewsCheck quoted Tribune's own press release! (see here: http://corporate.tribune.com/pressroom/?p=5734) So did many other outlets that ran the story (run "Tribune Local TV" into a Google News search and you'll see). The folks at Tribune forgot or blocked it out of their memory bank that MyNetworkTV exists. They lumped WPHL, KZJO and KXNW with KAUT (KAUT will be the only true indie, and the first one Tribune's had since the mid-1990s).

 

There will be 14 CW affiliates - including KTLA, WGN and WPIX - with Trib's 13 plus Local's WGNT (to be the fifth Tribune station to bear "WGN" in its calls - including now-Meredith owned WGCL, the former WGNX), TVNewsCheck clearly didn't realize that the MyNetworkTV stations being "independents" is what the release implied and errored in calling KTLA, WGN and WPIX independents, so it's an error on both parts.

 

The fact that Tribune is buying a dozen Big Three stations is interesting since of the 23 stations it has now, only WGNO is affiliated with a network that existed before 1986. And Tribune has only owned four Big Three stations in its history (WGN-TV - once with CBS until 1953 - WGNO, WGCL and KDLH).

 

The fact that Tribune will own stations in New York, Los Angeles and Chicago as well as small markets is interesting too, only Fox has that wide a market variance; though Sinclair and Nexstar are close behind (Hagerstown, where Nexstar owns WHAG, is techically part of the D.C. market) and the merged Gannett/Belo and Media General/Young will have almost as wide a market swath as well.

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There is one issue Tribune might have to overcome, and that is that one of it's newspapers is The Daily Press in Newport News, VA, which would bring it under common ownership with WTKR and WGNT, which, of course, is prohibited under FCC rules. So if they want to sell their newspapers, they'd better sell them quick.

 

IIRC, they could get a temporary waiver from the FCC allowing them to operate in the market as long as the newspaper(s) are for sale. They would have to divest the newspaper but in the interim they could operate while a buyer emerges.
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There is one issue Tribune might have to overcome, and that is that one of it's newspapers is The Daily Press in Newport News, VA, which would bring it under common ownership with WTKR and WGNT, which, of course, is prohibited under FCC rules. So if they want to sell their newspapers, they'd better sell them quick.

 

The Daily Press is the smaller of the two major newspapers serving Southeast Virginia, the other being The Virginian-Pilot in Norfolk. The Daily Press is primarily for the Peninsula which is the northern part of the market... I don't know anywhere one can buy a copy of it on the Southside. WTKR and the Daily Press already have a news partnership.

 

If Tribune assumes ownership of both WTKR and the Daily Press, it'll be the second time in the station's history the station would be co-owned with a newspaper. Landmark Communications owned both what was then WTAR and The Virginian-Pilot from the station's inception until the FCC forced the sale of the TV station to Knight-Ridder, at which WTAR became WTKR. WTKR's studios and the Pilot building are still located adjacent to one another.

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Actually, TVNewsCheck quoted Tribune's own press release! (see here: http://corporate.tribune.com/pressroom/?p=5734) So did many other outlets that ran the story (run "Tribune Local TV" into a Google News search and you'll see). The folks at Tribune forgot or blocked it out of their memory bank that MyNetworkTV exists. They lumped WPHL, KZJO and KXNW with KAUT (KAUT will be the only true indie, and the first one Tribune's had since the mid-1990s).

 

There will be 14 CW affiliates - including KTLA, WGN and WPIX - with Trib's 13 plus Local's WGNT (to be the fifth Tribune station to bear "WGN" in its calls - including now-Meredith owned WGCL, the former WGNX), TVNewsCheck clearly didn't realize that the MyNetworkTV stations being "independents" is what the release implied and errored in calling KTLA, WGN and WPIX independents, so it's an error on both parts.

 

 

I don't believe that MyNetworkTV counts as a true network anymore, but as a "programming service" akin to the old "Prime Time Entertainment Network" (PTEN) that many independent stations carried prior to the creation of the WB and UPN.

 

I would say it is fair to describe MyNetworkTV stations as independent stations that happen to carry the MyNetworkTV syndicated programming.

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I don't believe that MyNetworkTV counts as a true network anymore, but as a "programming service" akin to the old "Prime Time Entertainment Network" (PTEN) that many independent stations carried prior to the creation of the WB and UPN.

 

I would say it is fair to describe MyNetworkTV stations as independent stations that happen to carry the MyNetworkTV syndicated programming.

 

Exactly. With the only differentiating factor being that most MNT stations behave like network affiliates in their use of common branding.

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Tribune also cemented Antenna TV's future with the deal:

.........

 

Given that Tribune is taking over Weigel Broadcasting's stake in This TV, Tribune might start moving the network to the soon-to-be-former Local TV stations after the sale closes and once This' existing agreements with other stations expire.

 

I wished Tribune can hurry up and get This TV from KPRC and move it to KIAH. Or give KPRC some extra dough to drop the affiliation early. They also better hurry up and take This TV from soon-to-be Sinclair's KOMO 4. Ooooohh I hate saying that.

 

Weigel can easily move This TV to WITI 6.3 with no problem. It would also benefit WDJT with one less subchannel and put more bits on the main stream. This TV is already moving from one flagship station to another in the fall so it shouldn't be no issue in Milwaukee.

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I don't believe that MyNetworkTV counts as a true network anymore, but as a "programming service" akin to the old "Prime Time Entertainment Network" (PTEN) that many independent stations carried prior to the creation of the WB and UPN.

 

I would say it is fair to describe MyNetworkTV stations as independent stations that happen to carry the MyNetworkTV syndicated programming.

Exactly. With the only differentiating factor being that most MNT stations behave like network affiliates in their use of common branding.

And if I'm not mistaken, PTEN never had a set schedule but allowed stations that cleared the shows to air them at the stations' discretition. That came in handy when WUAB had to wrap Cleveland Indians telecasts around the hourlong shows (and WUAB would double-up the programming, usually rerunning PTEN shows on Saturday afternoons or late nights).

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Let's hope so. One of the nicer outcomes of the KWGN-KDVR merger was that both stations received nice, unique, in-house branding that fit those stations better than any of their previous outside packages did. Let's hope Tribune recognizes this. While I wouldn't be completely surprised if they went to a standardized look, I would imagine that doing so would be more difficult than other station groups considering that Tribune's stations are currently far more diverse in affiliations and branding than Gannett or Scripps ever were.

 

But also w/r/t Denver, I really hope they do something about the morning newscasts. The whole "two sister stations competing at the same time" thing doesn't work when viewers can change channels and see the exact same reports being introduced oftentimes with the exact same copy. The duopoly can't provide two distinct news products at the same time without them being clones of each other. Either KWGN should go for a fluffy format and bring some of Everyday's entertainment format to Daybreak, or they should scrap mornings altogether and perhaps look into making a go with a KCAL-style afternoon block.

 

A better strategy for KWGN would be to treat their morning news as an extension of Good Day. Call it Good Day on Colorado's Own 2, air it from 9-11 AM against what would be the last two hours of Today in other markets, but still use KWGN talent and branding (namely music and graphics).

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The fourth hour of Today airs at 11AM here (KUSA shoves their infomercial talk show, Colorado & Company, between the third and fourth hours).

 

KWGN used to have an 11AM newscast...maybe they could bring that back to one of the stations? (KUSA has a half-hour 11AM show on KTVD, and KMGH has an hour-long show)

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And following the lead of News Corp, Belo and others. Tribune announced today their intention to spin-off the publishing assets into a separate company.

 

Yep. Tribune Publishing Company will be the new spun-off company. I still think the Trib should sell all the papers, except for the Tribune. But this is some shocking and somber news that Channel 9 and the paper won't be in common ownership of each other in the next few months, despite the FCC granted them a permanent waiver to allow them to own the paper and Channel 9 (in contrast with the others who continue to have temporary waivers).

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Yep. Tribune Publishing Company will be the new spun-off company. I still think the Trib should sell all the papers, except for the Tribune. But this is some shocking and somber news that Channel 9 and the paper won't be in common ownership of each other in the next few months, despite the FCC granted them a permanent waiver to allow them to own the paper and Channel 9 (in contrast with the others who continue to have temporary waivers).

But it also immediately solves the issue of bringing WTKR/WGNT into the fold. And didn't Tribune have to have a waiver to own WGN-AM as well?

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But it also immediately solves the issue of bringing WTKR/WGNT into the fold. And didn't Tribune have to have a waiver to own WGN-AM as well?

 

Looking at the rbr.com article from November, the permanent waiver included AM 720, too. The other papers that have TV properties had temporary yearly waivers. So those waivers are expected to expire shortly.

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The Paperwork Is Up!!!!

 

Alright y'all. Here's the thorough breakdown of the consent applications (Form 315) to transfer control of the television stations owned by the Local TV Holdings, LLC of Newport, KY (owned by Oak Hill Capital) to Tribune Broadcasting Company, LLC of Chicago, IL. Here's the transaction agreement summary & purchase agreement, which Tribune will buy the stations from Local TV for $2.725B. The agreement was made on Saturday, June 29 (with the public announcement the following Monday, July 1st). The formal paperworks were made on Monday, and its posted on the FCC site after midnight (7/17).

 

Since they are filing a 315, all the stations will likely keep their licensee name. Nearly all the stations will be formally transferred from "Members of Local TV Holdings, LLC" to "Tribune Broadcasting Company II, LLC".

 

As for the duopolies, in Denver, KDVR is within the top-4 highest rated station, while KWGN is not. And with 22 stations (5 of which are non-com & 17 are commercial, and 18 different owners), that's more than enough stations and enough equal voices to form a duopoly. They have also filed to keep its satellite waiver of KDVR's satellite KFCT in Fort Collins.

 

In St. Louis, since KTVI is within the top-4 highest rating station, and based on that document, KPLR is not. And with 9 stations (8 com (including 2 IL licensed stations) & 1 non-com), that's shockingly enough to form the city's first major duopoly.

 

The Following Local TV stations will be transferred to Tribune proper.

KSTU (Fox) Salt Lake City - (Community Television Of Utah License, LLC)

KDVR (Fox) Denver - (Community Television Of Colorado License, LLC)

KFCT (Fox) Fort Collins, CO - (Community Television Of Colorado License, LLC)

KFOR (NBC) Oklahoma City - (Local TV Oklahoma License, LLC)

KAUT (IND) Oklahoma City - (Local TV Oklahoma License, LLC)

WDAF (Fox) Kansas City - (WDAF License, Inc.)

KTVI (Fox) St. Louis - (Community Television Of Missouri License, LLC)

WHO (NBC) Des Moines - (Local TV Iowa License, LLC)

WQAD (ABC) Moline, IL - (Local TV Illinois License, LLC)

KFSM (CBS) Fort Smith, AR - (Local TV Arkansas License, LLC)

KXNW (MyN) Eureka Springs, AR - (Local TV Arkansas License, LLC)

WREG (CBS) Memphis - (Local TV Tennessee License, LLC)

WHNT (CBS) Huntsville - (Local TV Alabama License, LLC)

WITI (Fox) Milwaukee - (Community Television Of Wisconsin License, LLC)

WJW (Fox) Cleveland - (Community Television Of Ohio License, LLC)

WGHP (Fox) High Point, NC - (Community Television Of North Carolina License, LLC)

WTVR (CBS) Richmond, VA - (Community Television Of Virginia Licensee, LLC)

 

NEW INFO!!!!

 

It appears to be a shell after all. Many folks have stated about Tribune's newspaper property The Daily Press in the same market. And what were they going to do with the paper, after acquiring a twinstick television property in the Hampton Roads. I strongly assumed that they were willing to assign the television properties to this shell, even before announcing the split of the print media asset from the main company (which that was announced last week). Anywho, WTKR/WGNT & Scranton's WNEP will be transferred to a new shell called Dreamcatcher Broadcasting, LLC of Santa Monica, CA, ran by former Tribune executive, Ed Wilson. From this separate purchase agreement Dreamcatcher will be paying Tribune $27M for WTKR/WGNT & WNEP. Tribune will operate these stations under a shared services agreement There's also an option agreement for Tribune to acquire the Dreamcatcher assigned stations under 'special circumstances'. So the transfer will be like this.

 

Local TV Pennsylvania/Virginia > Tribune Broadcasting > Dreamcatcher

 

The Following Local TV stations will be transferred and assigned to Dreamcatcher.

WNEP (ABC) Scranton - (Local TV Pennsylvania License, LLC)

WTKR (CBS) Norfolk - (Local TV Virginia License, LLC)

WGNT (CW) Portsmouth, VA - (Local TV Virginia License, LLC)

____________________________________________

 

Okay, Tribune might've thought about throwing some 'Dreamcatcher Dust' because of that paper that they already own (Daily Press). Or like I stated they thought about it before thinking about splitting the newspaper business to a different entity. But maybe they also thought about the ownership cap, which after consummation it would be past the 39% mark. But should they'd announced the spin-off of the papers beforehand, they probably would've not use a new shell, or probably feared about the ownership cap. But only four stations within the two groups (KCPQ, WHO, WJW & WPIX) are physically on the UHF dial, and the discount would favor them greatly. So other than that print reason, I don't see any other reason to use the new shell, especially for WNEP, where there's no other media property in that market.

 

But the shocking thing about it is that St. Louis will now have a true duopoly for the first time. I strongly thought that they would use a shell to acquire KTVI. But the paperwork explains it otherwise. But there won't be anymore duopolies because it would keep the eight voices rule. For example, if Sinclair ever wants that Roberts Broadcasting station, WRBU, they would have to use a shell to acquire it. At least this time, after closing hopefully, it will be business as usual for channel 2 & 11.

 

The other shocking thing about this is, this was one of those things that I would never thought, a company that got sold almost six years ago, then the new folks drove it down to bankruptcy for four years, and six month after their emergence from it, they would come from behind and shock the nation with this $2.7B takeover of the former New York Times & Fox O&Os. With the Media General/Young and the Gannett/Belo M&A, I thought this would've been OPEN SEASON for those devils in Maryland. I mean, we shouldn't be surprised because over half a decade, both have worked together sharing resources and merged ops in Denver & St. Louis. But I'm still shocked because I strongly thought everything would've been sold in pieces. That's what I call the 'Spirit of that rolling thunder of the Windy City'. LIN should've done that to get the Fisher stations. This just proves that you can't go to sleep on unexpected news like this, you just can't.

 

So Tribune's getting Local TV. There's spinning off the papers. And they have now hired someone to asses the real estate side of the business, including their soon-to-be spun-off papers.

 

I would still would've been happy, since they have a permanent waiver, they should keep the Tribune Paper as common ownership with Channel 9 & AM 720 and sell the rest to the papers (including the LA Times) to another firm. But as you see it's a whole different Tribune Company and it appears that they're trying to do baby steps. A lot of work they need to do to help its news departments. Case in point, WPIX. But I'm hoping for the best for this administration. I hope they don't mess this up, like Zell's tenure.

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According to the KTVI application, Tribune can own both KTVI and KPLR because apparently, WPXS is considered part of the St. Louis market even though its city of license is in the Cape Girardeau, Mo market, and there wiil be eight unique station owners left in the market after the transaction. Also, despite KDNL being one of the weakest ABC affiliates, KPLR isn't ranked in the top four.

https://licensing.fcc.gov/cdbs/CDBS_Attachment/getattachment.jsp?appn=101561073&qnum=5190&copynum=1&exhcnum=1

 

Tribune will also seek a failing station waiver to own KFSM and KXNW in the Fort Smith, Ark market.

https://licensing.fcc.gov/cdbs/CDBS_Attachment/getattachment.jsp?appn=101561000&qnum=5190&copynum=1&exhcnum=1

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