Gannett to acquire Belo

[roscoryan 21]

http://www.reuters.com/article/2013/06/13/belo-gannett-idUSL2N0EP0BC20130613

 

Media company Gannett Co Inc said on Thursday that it agreed to pay $1.5 billion in cash to buy Belo Corp and assume $715 million in debt, giving television company Belo an enterprise value of $2.2 billion.

The deal, which represents a 28.1 percent premium on Belo's Wednesday closing price, would make Gannett the fourth-largest U.S. owner of major network affiliates, reaching nearly a third of U.S. households, according to the company.

[CircleSeven 1944]

DAMN!!! WOW!!! Just WOW!!! I think we going another big station group in our hands soon.

 

And I just watching an online stream of WWL's morning newscast announcing the news just now (7:07am/CT).

 

But Seriously, there's an overlap in St. Louis (KSDK & KMOV) and Phoenix (KTVK/KASW & KPNX). Which station will be divested at this point? The press release below stated that Gannett will operate the overlap stations via shared service agreements.

 

I guess my other concern is could this be the end of the Belo/615 relationship? It would be hell if WFAA drops The Spirit Of Texas theme after almost 30 years. It will also be devastating that WFAA will not be a flagship station anymore.

 

But this Big News!!! Very Interesting indeed.

[Nelson R. 560]

First post. Ironic that the respective ABC and NBC affiliates in Charlotte and Atlanta will be sister stations.

[CircleSeven 1944]

First post. Ironic that the respective ABC and NBC affiliates in Charlotte and Atlanta will both be sister stations.

Welcome to the board.

 

You mean both NBC affiliates (WCNC - Belo & WXIA - Gannett) will be sister stations. Both ABC stations in those same cities (WSB & WSOC) are already owned by the same company (Cox).

 

Here's the press release from the Gannett site.

 

The combination creates a broadcast “Super Group,” catapulting Gannett into the nation’s fourth-largest owner of major network affiliates reaching nearly a third of all U.S. households. The acquisition nearly doubles Gannett’s current broadcast portfolio from 23 to 43 stations, including stations to be serviced by Gannett through shared services or similar sharing arrangements. Upon completion of the transaction, Gannett’s Broadcast segment will have greater geographic and revenue diversity, with 21 stations in the top 25 markets and will become the #1 CBS affiliate group, the #4 ABC affiliate group, and will expand its already #1 NBC affiliate group position.

So Gannett will have a shell. Which shell would it be to acquire the Phoenix & St. Louis properties. I assume they will keep KSDK & KPNX to Gannett proper.

[mike91 66]

Don't forget FOX in Charlotte and Atlanta in a few weeks too. This is interesting news. I hope that Gannett can invest more in some of the newly acquired stations (cough cough HD for WCNC).

[tyrannical bastard 3458]

I would imagine that Gannett would dump (or trade) something in St. Louis or Phoenix. This isn't like Sinclair or Nexstar owning two or more bottom-feeder stations in the same market using shells or JSAs.....these stations are rank very well in their markets. The FCC would SHOULD take issue if the #1 and #2 stations join forces.

 

If not, ownership rules be damned....

 

It makes St. Louis and what could happen VERY interesting. I wouldn't be surprised if Sinclair decided to trade or buy any station in question (including KTVI from LocalTV) just to give KDNL either a way to swap affiliations or to add some street credibility that it desperately needs.

 

Gannett has traded in the past....they had to trade WLWT to Hearst-Argyle back in 1996 when they purchased Multimedia (since Gannett owns the Inquirer)

[TVIntheDesert 183]

There is going to be scrutiny over Phoenix though. Gannett owns The Arizona Republic and KPNX. I can't see how they can get away with owning a major daily newspaper and three TV stations in one market. They had to get FCC permission to buy the Republic and keep KPNX. If they have to sell, please DON'T let it be Sinclair!

 

Also, I don't feel that they'll keep Tucson. They'll sell those stations directly to Raycom/American Spirit

[CircleSeven 1944]

 

Gannett has traded in the past....they had to trade WLWT to Hearst-Argyle back in 1996 when they purchased Multimedia (since Gannett owns the Inquirer)

 

Gannett also did a swap with former station KVUE for Belo's KXTV back in 1999. Now both will become sister stations.

 

 

Don't forget FOX in Charlotte and Atlanta in a few weeks too. This is interesting news. I hope that Gannett can invest more in some of the newly acquired stations (cough cough HD for WCNC).

 

Actually, Fox already owns WJZY since April. It's still affiliating the CW programs for another two weeks or so. But you're right Fox, Cox and by 2014, Gannett will have both Charlotte & Atlanta markets locked.

[Nelson R. 560]

Welcome to the board.

 

You mean both NBC affiliates (WCNC - Belo & WXIA - Gannett) will be sister stations. Both ABC stations in those same cities (WSB & WSOC) are already owned by the same company (Cox).

 

Yeah that's what I meant. Didn't word it right.

 

Glad to be here. Been lurking on this board since the news came out about Fox buying WJZY and WMYT.

[Nelson R. 560]

Don't forget FOX in Charlotte and Atlanta in a few weeks too. This is interesting news. I hope that Gannett can invest more in some of the newly acquired stations (cough cough HD for WCNC).

No kidding. And while they're at it, go easy on the blue on the set!

[A3N 996]

There is going to be scrutiny over Phoenix though. Gannett owns The Arizona Republic and KPNX. I can't see how they can get away with owning a major daily newspaper and three TV stations in one market. They had to get FCC permission to buy the Republic and keep KPNX. If they have to sell, please DON'T let it be Sinclair!

 

Also, I don't feel that they'll keep Tucson. They'll sell those stations directly to Raycom/American Spirit

There's no way that Gannett gets away with this in Phoenix. I think that we will see a few of those stations sold or traded if they start to run into problems with the FCC. Now we get to see who will have the worst media company in the U.S: Gannett or Sinclair?

[bhratbrat 423]

Sinclair is the worst bar none. I am going to wonder what is going to happen to BELO. A great company and sad to see it leave.

[CircleSeven 1944]

Oh I just realized another thing.

 

Once they file the FCC paperwork is made, I wouldn't be shocked if they file a 315 'Transfer Of Control' application for all the stations; and all of the station's licensee names are kept intact, like Gannett's other acquisitions in the past (Pacific and Southern Company, Combined Communications Corp., Multimedia Holdings). So King Broadcasting Company licensee name for KING 5 & KGW 8 would probably stay the same. Most others uses their calls for their names like WFAA-TV, Inc.

 

Sinclair is the worst bar none. I am going to wonder what is going to happen to BELO. A great company and sad to see it leave.

That's going to really be a tough thing to adjust. Because when you think of Belo, you think of the state of Texas. And after the transaction is over, WFAA will be Gannett's largest station by market size but it will not be the flagship property. Nexstar's big man Perry Sook mentioned about the rise of the Super Groups a few months back and so far, he's been right on the dime. Last Thursday was the merger of Young & Media General. This morning is Belo & Gannett. What's Next?

[bhratbrat 423]

http://www.dallasnews.com/business/20130613-gannett-buying-dallas-based-belo-corp.-wfaa-in-2.2b-deal.ece

 

I wonder how much WFAA would have gotten on its own since that is Belo's Beachfront property?

[Rusty Muck 4165]

Now we get to see who will have the worst media company in the U.S: Gannett or Sinclair?

Gannett doesn't overtly force political agendas on their newscasts or prempt network programming because it doesn't fit their views.

 

They will, however, preempt shows to clear local ad inventory.

[Rusty Muck 4165]

I guess my other concern is could this be the end of the Belo/615 relationship? It would be hell if WFAA drops The Spirit Of Texas theme after almost 30 years. It will also be devastating that WFAA will not be a flagship station anymore.

Sort of ironic in the sense that WKYC used Propulsion for their evening newscasts prior to the most recent G3 standardization upgrade.

[Rusty Muck 4165]

Last Thursday was the merger of Young & Media General. This morning is Belo & Gannett. What's Next?

Depends on who gets the Allibitron stations (sans WJLA) and the LocalTV stations.

 

And does this trend start to make groups like Scripps (who themselves swallowed up the McGraw-Hill group) buyers or takeover targets? Young was an obvious target even with KRON, but Belo selling is shocking as hell.

[TexasTVNews 1366]

You gotta be kidding me?! As a native North Texan; born and raised here in Dallas area, I just don't know if I'm going to like this. What is the future with the Belo stations including WFAA? Will there be a name change from Belo to Gannett? There's going to be a whole lot of questions that needs to ask.

[TVIntheDesert 183]

 

There's no way that Gannett gets away with this in Phoenix. I think that we will see a few of those stations sold or traded if they start to run into problems with the FCC. Now we get to see who will have the worst media company in the U.S: Gannett or Sinclair?

 

Well, anything's possible with "Today's FCC." When Comcast took control NBC, they were forced to sell KWHY in Los Angeles.

 

This will be about whether or not Gannett still wants to own a newspaper in Phoenix, or control three TV stations (well, actually two and a half. The only local program KASW airs is a replay of KTVK's political roundtable show from the week before).

 

St. Louis will be all about revenue. I take that KSDK and KMOV control almost 50 percent of TV revenue there.

[skbl17 188]

All I can say to the Belo stations is: prepare for Gannettization. No more of this "Spirit of Texas" or "Spirit of Louisiana" stuff, it's all "This is Home" for you guys now. Also, prepare for black box graphics and droves of viewer complaints because of said boxes.

 

Still, all this M&A is getting silly. Be prepared, tomorrow we could all wake up only to see crazy headlines like "Scripps to merge with Sinclair" or "Nexstar to acquire Cox" or stuff like that. Also, I am shocked that Belo would go bye-bye; it's one of the best-run station groups in my opinion. Another well-run station group falls.

 

Finally, what will happen to TXCN? Will Gannett get its first cable news channel? Will TXCN be closed? So many questions.

 

R.I.P. Belo.

[A3N 996]

 

Gannett doesn't overtly force political agendas on their newscasts or prempt network programming because it doesn't fit their views.

 

They will, however, preempt shows to clear local ad inventory.

 

Well, aside from the political bias, It was more for which company will/is worse for the employees. Both companies don't treat their employees like they should, and we all know Gannett's history with furloughs and layoffs, etc.

 

 

Well, anything's possible with "Today's FCC." When Comcast took control NBC, they were forced to sell KWHY in Los Angeles.

 

This will be about whether or not Gannett still wants to own a newspaper in Phoenix, or control three TV stations (well, actually two and a half. The only local program KASW airs is a replay of KTVK's political roundtable show from the week before).

 

St. Louis will be all about revenue. I take that KSDK and KMOV control almost 50 percent of TV revenue there.

 

Good points. On a side note, its sad to see that Gannett will get its hands on WFAA, KING and WWL. Let's hope that they don't mess these stations up.

[MidwestTV 1173]

Wait, perhaps I've missed it, but do we know WHY Gannett and Belo have done this or WHAT sparked it all?

[Jterry 43]

Good grief. I thought the Young/MG deal was big. What a year it's been. Going to be hard to imagine the Gannett look on stations like WFAA and KING. So many complications too in markets like St. Louis with KMOV/KSDK. This will be "fun" to watch unfold.

[TexasTVNews 1366]

What about the Belo Headquarters in Downtown Dallas? Gannett's going to take over that building too?

[MidwestTV 1173]

 

And does this trend start to make groups like Scripps (who themselves swallowed up the McGraw-Hill group) buyers or takeover targets? Young was an obvious target even with KRON, but Belo selling is shocking as hell.

 

I'm sorry, but what do you mean by this? But what I do find sort of confusing is why no one seemed to "care as much" when Scripps bought all of McGraw-Hill's station. While it was sort of surprising, (I think), no one really flipped out over it and some even thought that it might be beneficial for a few of the stations. But it seems to me as if almost EVERY company after that who bought another company's entire broadcast side or just took them over, shit was flipped and hell was raised.