Gannett to acquire Belo

[mre29 1341]

 

Because this has become the fashionable deal to criticize with regards to the recent consolidation. For whatever reason Sen. Cantwell singled out this deal to complain about JSA's and ownership rules. And, since then it's been easy for more groups to just glom on in order help further/draw attention to their various agendas.

 

She complains about Gannett/Belo yet doesn't say anything about Sinclair/Fisher? Amazing.

[Mrtraveler01 737]

 

She complains about Gannett/Belo yet doesn't say anything about Sinclair/Fisher? Amazing.

 

Especially considering that she represents Washington State and lives near Fisher's hometown.

 

And the fact she's a Democrat should tell you that KOMO won't be too kind to her under their soon-to-be new ownership.

[Samantha 2878]

 

It sucks it has gotten to this point. Unfortunately, the results of "un-doing" these arrangements might be worse and not what some people think would happen by "un-doing" them.

 

Facility consolidation, contractual obligations, and the changed economy have definitely played a factor.

 

Look at Yuma, where what is being proposed is a full duopoly consolidating two of the three news operations in the market. I am not one to like the business practices that sometimes happen with failing station waivers, but I actually agree with Brian Brady.

 

DMA 165 is small, and these stations have very limited resources. The unemployment rate in Yuma ran from 25-30% in the past six months and 23-25% in El Centro, where no other economy in the state of AZ even topped 9%. (Not saying high unemployment is a factor in every SSA. In Idaho Falls and Pocatello, the unemployment rate is 5 to 6 percent!) In addition, the arrival of KECY to local news may play a role; Yuma has only ever had two news operations at a time for long stretches, barring 2012-13 and 1988-94.

 

Here is what would happen to have to unwind these SSAs...

 

-Acquisition of studio facilities. It would be quite uncomfortable for stations in a splitting SSA to have to share facilities. In some markets the only available facilities might be older, or they may not even exist at all if it's a particularly long-running agreement. There's additional cost in upgrading the older plant to include HD and modern digital equipment. That can get mighty expensive.

 

-Economic improvement. In, say, 2004, Yuma-El Centro probably could bear the weight of three news operations, but not now.

 

-De-emphasis of economies of scale. Consolidation is forcing broadcasters to create economies of scale to maintain leverage against networks, syndicators and advertisers, usually through yet more consolidation. What happened to little, family-run KTVK in 1994 could happen in different ways to other smaller companies as they are bypassed in favor of larger companies that offer their clients more reach and convenience.

 

I don't agree with SSAs/JSAs on the whole, especially in markets that could probably sustain four local news operations (St. Louis, Raleigh-Durham, Columbus, Albuquerque, Jacksonville). Some (KYMA/KSWT) are economic necessities. But others have no reason to exist other than profit.

[CircleSeven 1944]

Well, in a rarity, the FCC has docketed the sale.

 

http://transition.fcc.gov/Daily_Releases/Daily_Business/2013/db0731/DOC-322491A1.pdf

Not Only Tribune/Local TV sale was docketed today, but the Gannett/Belo sale was also docketed by the FCC today.

 

Why they didn't do this with any of the Sinclair acquisitions in the last two years? Because How massive these two deals are? Now to me, that doesn't make any damn sense.

[hathawaynson2 38]

[Thundershock MN 169]

Comments copied from Media General, Young to merge thread. Reply below fits better here.

 

Ummm...what is really all that qusetionable about these three that they need the extra microscope?

 

Media General/Young is a merger with no real overlaps. So, what's the big deal here?

 

Tribune/Local TV only has a couple on conflicts because of newspaper cross-ownership rules. Tribune has already stated that the newspapers will be spunoff. WNEP, WGNT & WTKR are going to Dreamcatcher in the interm until the spinoff is complete. The SSA paperwork even has the buyback clause included in it. So, again what's the big deal with this transaction?

 

Gannett/Belo is the only one that might deserve a little more attention. First the sale of the Louisville (WHAS) & Portland (KGW) stations is due to newspaper cross-ownership rules. Not really a big deal in my mind. On to Tucson, the same deal there with the duopoly of KMSB/KTTU being sold because of newspaper ownership. I haven't heard for sure if the SSA to Raycom/KOLD will continue or not. The Raycom GM there expects it to but I haven't seen anything stating that as fact. So, the situation could technically improve with an "unwinding" of the SSA with Raycom. Otherwise, it's just status quo there as it is now with the virtual triopoly. So, if nothing is really "changing" what's the big deal? Phoenix & St. Louis is where the deal gets sticky. If Gannett was smart they should have tried to swap these with another station group. If they did that it would really be smooth sailing for them.

 

So all in all we are docketing all of these when only three TOC's (KMOV, KTVK & KASW) really need extra review and scrutiny.

 

What I like to know is that 1) what is your definiton of "unwinding" of the SSA mean? and 2) the docketing has been done so that the FCC can really have input on what to do with the Gannett/Belo deal and how that deal is going to work out.

Right now the SSA is Belo->Raycom. Once the sale is complete the SSA will either go Sander/Tucker->Gannett->Raycom. Or, just simply go Sander/Tucker->Gannett there by not continuing or "unwinding" the SSA with Raycom. It is very likely that the Gannett will continue the SSA with Raycom basically mantianing status quo. However, I haven't seen any comments directly from Gannett stating for a fact that they intend to continue the SSA to Raycom. There has been comments from the KOLD GM stating that they expect it to continue but, nothing 100%. So, there is the possibility albeit slim that the virtual triopoly could end. Some people (read:FCC commissioners/ interest groups) could view the Tucson market as technically "improving" with an "unwinding" of the SSA with Raycom as it would theoretically add another tv voice to market. You would have a Gannett controlled duopoly of KMSB/KTTU and a standalone Raycom owned KOLD.

 

The economics really call for continuing the SSA to Raycom. However, if I were King I'd tell Gannett to end the SSA with Raycom when they take over and return most of the operational fuctions to KTVK. This would return KMSB to it's early-mid 00's roots. They could leave a small sales staff and a "news bureau-like" operation in Tucson but, just about everything would originate (or, be based) in Phoenix. As KTVK would be effectively running 4 stations the economics should allow for it to be profitable and basically be a standalone/independent (or, at least very close to) operation from KPNX. And, since they are really trying to sell that KTVK/KASW will have some deal of seperation from KPNX this would help in that regard, too. That could kill two birds with one stone leaving St. Louis as the only real problem.

 

WRT to the docketing. I saw little to no need to docket the Media General/Young & Tribune/Local TV sales. The Gannett/Belo sale really only had 3 TOC applications (KMOV, KTVK & KASW) that I could see as potentially needing docketing or, further examination and public input if you will. Holding up all the rest comes across as grandstanding to me that they are "doing something" due to public outcry on all consolidation going on. But, is there really a need to hold up the transfer of all of those other licenses? Is there a legitimate reason anyone can give to deny the rest of these TOC's?

[GoldenShine9 1509]

 

Comments copied from Media General, Young to merge thread. Reply below fits better here.

 

 

 

Right now the SSA is Belo->Raycom. Once the sale is complete the SSA will either go Sander/Tucker->Gannett->Raycom. Or, just simply go Sander/Tucker->Gannett there by not continuing or "unwinding" the SSA with Raycom. It is very likely that the Gannett will continue the SSA with Raycom basically mantianing status quo. However, I haven't seen any comments directly from Gannett stating for a fact that they intend to continue the SSA to Raycom. There has been comments from the KOLD GM stating that they expect it to continue but, nothing 100%. So, there is the possibility albeit slim that the virtual triopoly could end. Some people (read:FCC commissioners/ interest groups) could view the Tucson market as technically "improving" with an "unwinding" of the SSA with Raycom as it would theoretically add another tv voice to market. You would have a Gannett controlled duopoly of KMSB/KTTU and a standalone Raycom owned KOLD.

 

The economics really call for continuing the SSA to Raycom. However, if I were King I'd tell Gannett to end the SSA with Raycom when they take over and return most of the operational fuctions to KTVK. This would return KMSB to it's early-mid 00's roots. They could leave a small sales staff and a "news bureau-like" operation in Tucson but, just about everything would originate (or, be based) in Phoenix. As KTVK would be effectively running 4 stations the economics should allow for it to be profitable and basically be a standalone/independent (or, at least very close to) operation from KPNX. And, since they are really trying to sell that KTVK/KASW will have some deal of seperation from KPNX this would help in that regard, too. That could kill two birds with one stone leaving St. Louis as the only real problem.

 

WRT to the docketing. I saw little to no need to docket the Media General/Young & Tribune/Local TV sales. The Gannett/Belo sale really only had 3 TOC applications (KMOV, KTVK & KASW) that I could see as potentially needing docketing or, further examination and public input if you will. Holding up all the rest comes across as grandstanding to me that they are "doing something" due to public outcry on all consolidation going on. But, is there really a need to hold up the transfer of all of those other licenses? Is there a legitimate reason anyone can give to deny the rest of these TOC's?

 

The skeptic in me suggests they were placed there as an attack on Gannett, Tribune and Media General by some bureaucrats tied to Sinclair, who are mad they are not getting into those companies (Belo, Local TV and Young). That might explain the double standard. Of course, that cannot be proven.

 

I agree, the other two have no real conflicts at all (just with newspapers which are going the way of the Dodo bird). Gannett/Belo definitely has issues in St. Louis and Phoenix, but there is an easy way out - Gannett could trade them to another company for similar stations (i.e. high-ranking in 11-25 markets) where no Gannett assets exist. I don't think the duopolies there were the catalyst for the purchase as much as they wanted greater reach.

 

I agree, the Tucson situation will be - basically - status quo (they would be Raycom-tied more than Gannett-tied). Also I would eliminate the newspaper-TV rule personally given the fall of newspapers and inconsistency of application, and in this case, Gannett would be free to own WHAS and KGW with no need for shells (likewise, Dreamcatcher would be unnecessary as Tribune proper could own WNEP, WTKR and WGNT).

[GoldenShine9 1509]

In markets 11-25, only three markets - Miami (16), Pittsburgh (23) and Raleigh-Durham (24) - have no Belo/Gannett assets at all. The only company that has Big Three stations in even 2 of those markets is CBS, with WFOR and KDKA.

 

In addition, two other markets - Detroit (11) and Orlando (19) - have no TV assets but Gannett has a newspaper in those markets (Florida Today in Melbourne, FL and the Detroit Free Press).

[hathawaynson2 38]

 

Comments copied from Media General, Young to merge thread. Reply below fits better here.

 

 

 

Right now the SSA is Belo->Raycom. Once the sale is complete the SSA will either go Sander/Tucker->Gannett->Raycom. Or, just simply go Sander/Tucker->Gannett there by not continuing or "unwinding" the SSA with Raycom. It is very likely that the Gannett will continue the SSA with Raycom basically mantianing status quo. However, I haven't seen any comments directly from Gannett stating for a fact that they intend to continue the SSA to Raycom. There has been comments from the KOLD GM stating that they expect it to continue but, nothing 100%. So, there is the possibility albeit slim that the virtual triopoly could end. Some people (read:FCC commissioners/ interest groups) could view the Tucson market as technically "improving" with an "unwinding" of the SSA with Raycom as it would theoretically add another tv voice to market. You would have a Gannett controlled duopoly of KMSB/KTTU and a standalone Raycom owned KOLD.

 

The economics really call for continuing the SSA to Raycom. However, if I were King I'd tell Gannett to end the SSA with Raycom when they take over and return most of the operational fuctions to KTVK. This would return KMSB to it's early-mid 00's roots. They could leave a small sales staff and a "news bureau-like" operation in Tucson but, just about everything would originate (or, be based) in Phoenix. As KTVK would be effectively running 4 stations the economics should allow for it to be profitable and basically be a standalone/independent (or, at least very close to) operation from KPNX. And, since they are really trying to sell that KTVK/KASW will have some deal of seperation from KPNX this would help in that regard, too. That could kill two birds with one stone leaving St. Louis as the only real problem.

 

WRT to the docketing. I saw little to no need to docket the Media General/Young & Tribune/Local TV sales. The Gannett/Belo sale really only had 3 TOC applications (KMOV, KTVK & KASW) that I could see as potentially needing docketing or, further examination and public input if you will. Holding up all the rest comes across as grandstanding to me that they are "doing something" due to public outcry on all consolidation going on. But, is there really a need to hold up the transfer of all of those other licenses? Is there a legitimate reason anyone can give to deny the rest of these TOC's?

 

Apparently, I like your definition of the SSA continuation of this: Belo->Raycom and/or Sander/Tucker->Gannett->Raycom concept that you pointed out in the first paragraph and If I was in charge of the FCC, I would say to Gannett: end the SSA transaction and return to seven or eight owners and operators in the market and basically return the ownership of the two stations in Tucson to the way things were before the Belo/Gannett Merger.

 

Now, to answer you query regarding the TOC or Transfer of Control of KMOV, KTVK and KASW, I personally would not like to see these three stations go to Sander Media at all. I would like to see them sold in a way that can preserve an stable and more of competitive environment in the Television Industry besides using and abusing the SSA/JSA agreements with Gannett and if you think I am not the person who writes long sentences on TVNewsCheck and predicts this station will go to this owner and request that this or rather be happy with WXXX goes to this and that, I never never never ever ever do that! I wait and see if the TV station or Station group goes through and if one station needs to be separated from the others just because of the cross ownership regulations or rules based on what the FCC has in store.

:rant:

[NewsMaster 226]

In markets 11-25, only three markets - Miami (16), Pittsburgh (23) and Raleigh-Durham (24) - have no Belo/Gannett assets at all. The only company that has Big Three stations in even 2 of those markets is CBS, with WFOR and KDKA.

 

In addition, two other markets - Detroit (11) and Orlando (19) - have no TV assets but Gannett has a newspaper in those markets (Florida Today in Melbourne, FL and the Detroit Free Press).

That has Post-Newsweek written all over it. I could see a deal where KTVK/KASW and KMOV go to P-NW and Gannett gets WDIV and WPLG (the former of which would have to be sold to Sander because of the Free Press). Unlikely to happen though…

[Thundershock MN 169]

The skeptic in me suggests they were placed there as an attack on Gannett' date=' Tribune and Media General by some bureaucrats tied to Sinclair, who are mad they are not getting into those companies (Belo, Local TV and Young). That might explain the double standard. Of course, that cannot be proven.[/b']

 

I agree, the other two have no real conflicts at all (just with newspapers which are going the way of the Dodo bird). Gannett/Belo definitely has issues in St. Louis and Phoenix, but there is an easy way out - Gannett could trade them to another company for similar stations (i.e. high-ranking in 11-25 markets) where no Gannett assets exist. I don't think the duopolies there were the catalyst for the purchase as much as they wanted greater reach.

 

I agree, the Tucson situation will be - basically - status quo (they would be Raycom-tied more than Gannett-tied). Also I would eliminate the newspaper-TV rule personally given the fall of newspapers and inconsistency of application, and in this case, Gannett would be free to own WHAS and KGW with no need for shells (likewise, Dreamcatcher would be unnecessary as Tribune proper could own WNEP, WTKR and WGNT).

Right now I think it's more a reaction to Sen. Cantwell's outrage towards Gannett/Belo and everyone else piling on after that. The FCC felt compelled to act or, "do something". So, Media General/Young & Tribune/Local Tv just happen to be in the wrong place at the wrong time if you will. Now, if the Allbritton/Sinclair deal doesn't get the same treatment I'll agree with you.

In markets 11-25, only three markets - Miami (16), Pittsburgh (23) and Raleigh-Durham (24) - have no Belo/Gannett assets at all. The only company that has Big Three stations in even 2 of those markets is CBS, with WFOR and KDKA.

 

In addition, two other markets - Detroit (11) and Orlando (19) - have no TV assets but Gannett has a newspaper in those markets (Florida Today in Melbourne, FL and the Detroit Free Press).

Therein lies part of the problem. Even if they really wanted to swap KMOV (or any of the others) it's not always easy to find a dance partner.

Apparently, I like your definition of the SSA continuation of this: Belo->Raycom and/or Sander/Tucker->Gannett->Raycom concept that you pointed out in the first paragraph and If I was in charge of the FCC, I would say to Gannett: end the SSA transaction and return to seven or eight owners and operators in the market and basically return the ownership of the two stations in Tucson to the way things were before the Belo/Gannett Merger.

 

Now, to answer you query regarding the TOC or Transfer of Control of KMOV, KTVK and KASW, I personally would not like to see these three stations go to Sander Media at all. I would like to see them sold in a way that can preserve an stable and more of competitive environment in the Television Industry besides using and abusing the SSA/JSA agreements with Gannett and if you think I am not the person who writes long sentences on TVNewsCheck and predicts this station will go to this owner and request that this or rather be happy with WXXX goes to this and that, I never never never ever ever do that! I wait and see if the TV station or Station group goes through and if one station needs to be separated from the others just because of the cross ownership regulations or rules based on what the FCC has in store.

:rant:

How far back before the Belo/Gannett merger? Belo has had the SSA with Raycom in place since February 2012. So, you'd have to go back a full 15 months before the merger was announced. If Gannett decided to discontinue the SSA with Raycom it would theoretically due what you are hoping for (return the Tucson market to it's state circa February 2012) and add another operator back to the Tucson market. Unfortunately, the economics of the Tucson market make it very unlikely, though.

 

I tend to agree on KMOV, KTVK & KASW. The Phoenix duo doesn't bother me as much. The Phoenix market is much more diverse when compared to St. Louis. So, it makes it slightly more palatable but, still tough to swallow. KMOV is a pretty big issue, though. I agree that Gannett should really try to swap/sell in this case. I can't imagine they really want(ed) to go through the meat grinder. And, It's entirely possible they want(ed) to sell/swap and avoid the FCC microscope but, can't make the pieces of the puzzle fit with regards to a sale/swap.

[hathawaynson2 38]

 

Right now I think it's more a reaction to Sen. Cantwell's outrage towards Gannett/Belo and everyone else piling on after that. The FCC felt compelled to act or, "do something". So, Media General/Young & Tribune/Local Tv just happen to be in the wrong place at the wrong time if you will. Now, if the Allbritton/Sinclair deal doesn't get the same treatment I'll agree with you.

Therein lies part of the problem. Even if they really wanted to swap KMOV (or any of the others) it's not always easy to find a dance partner.

How far back before the Belo/Gannett merger? Belo has had the SSA with Raycom in place since February 2012. So, you'd have to go back a full 15 months before the merger was announced. If Gannett decided to discontinue the SSA with Raycom it would theoretically due what you are hoping for (return the Tucson market to it's state circa February 2012) and add another operator back to the Tucson market. Unfortunately, the economics of the Tucson market make it very unlikely, though.

 

I tend to agree on KMOV, KTVK & KASW. The Phoenix duo doesn't bother me as much. The Phoenix market is much more diverse when compared to St. Louis. So, it makes it slightly more palatable but, still tough to swallow. KMOV is a pretty big issue, though. I agree that Gannett should really try to swap/sell in this case. I can't imagine they really want(ed) to go through the meat grinder. And, It's entirely possible they want(ed) to sell/swap and avoid the FCC microscope but, can't make the pieces of the puzzle fit with regards to a sale/swap.

 

AFAIK, the annoucement from Belo was very much like this in 2011; they announced the SSA agreement with Raycom Media in November of 2011 to operated KTTU/KMSB at time and basicly it was 2 years ago when they said it. I personally think it had something to do with the economy and/or the Tucson Market was looking horrible. Also, the article, stated that they wanted to increase production of more newscasts in the mornings that they could not do other wise and due to KTTU/KMSB entering the Shared Services Agreement with Raycom, KMSB shuts down its news department completly and starts pink slipping 20 staff members. At around that time the two master controls were being "hubbed" out of Phoenix via KTVK instead of having the controls in Tucson.

There is an article I would like to share about what had happened with KTTU/KMSB (if its okay to do such)

http://www.tvnewscheck.com/article/55453/belo-turning-over-kmsb-kttu-to-kold

[CircleSeven 1944]

B&C states both Gannett & Belo have made replies to those 'petitions of deny' from those activist groups & cable firms, Basically saying that the Sander & Tucker assignment apps, violates no FCC rules, and such, and many of their objections are based on "mischaracterizations and baseless speculation".

[AaronQ 259]

The DOJ wants to seek more information in regards to the sale between Gannett and Belo according to the Washington Business Journal. http://www.bizjournals.com/washington/news/2013/08/23/doj-seeks-more-information-on-gannett.html?full=true

[mre29 1341]

Funny, I don't remember them saying anything about Sinclair...

[GoldenShine9 1509]

It sure sounds like there is an anti-Gannett bias in DC...

[CircleSeven 1944]

The Free Press wants this deal halted on the overlapped markets, at any cost. They just now posted the 1,000+ signatures who've signed an online petition to block the Gannett/Belo transaction.

[TexasTVNews 1367]

Gannett, Belo get DOJ request for merger info

http://www.usatoday.com/story/money/business/2013/08/23/gannett-and-belo-receive-doj-request/2694061/

[jero23 105]

 

Funny, I don't remember them saying anything about Sinclair...

 

Exactly...

[hathawaynson2 38]

 

Funny, I don't remember them saying anything about Sinclair...[/quote

Me neither.

[ABC 7 Denver 1554]

I just received important documentation regarding the merger. There will be a special meeting of the shareholders in Dallas on September 25th.

[mike91 66]

http://m.us.wsj.com/articles/a/SB10001424127887323846504579071320775678460?mg=reno64-wsj

 

Belo stockholders are planning to vote against the deal according to the Wall Street Journal (only have the preview though)

[GoldenShine9 1509]

If shareholders vote against the deal, it is dead, correct?

[broadcastfan9751 136]

 

If shareholders vote against the deal, it is dead, correct?

 

Yes, unless Gannett submits a better offer.

[GoldenShine9 1509]

 

Yes, unless Gannett submits a better offer.

 

The offer price does seem fairly low, especially compared to the $2.7B price Tribune is paying for Local TV (mind you, that was likely inflated by the fact they needed to get aggressive to beat out Sinclair).