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LIN TV to Buy 5 Stations From Emmis Communications for $260M

Posted on: Monday, 22 August 2005, 21:00 CDT

Aug. 23--LIN TV Corp. of Providence said yesterday it has reached an agreement to buy five network-affiliated TV stations for $260 million in cash from Emmis Communications Corp.

The move, if completed as planned, would bring to 30 the number of TV stations that LIN owns and operates. The company now owns and operates 25, including WPRI Channel 12 in the Providence market. (The company also operates WNAC Channel 64.)

"The acquisition of these stations will be an important step in the implementation of LIN TV's multi-station strategy," Gary R. Chapman, LIN TV's chairman, president and chief executive officer, said in a statement.

"All of these new stations will have the opportunity to benefit from LIN TV's industry-leading operating capabilities, as they will be able to leverage our considerable experience and industry-leading infrastructure," he said.

By operating multiple stations in various markets, and "hubbing" single stations out of its technology centers, LIN TV seeks to increase market share while controlling costs at each station, the company said.

If the deal is completed as planned, LIN would acquire from Indianapolis-based Emmis the following stations:

--KRQE-TV, the CBS network affiliate in Albuquerque, N.M., the 47th largest market in the nation.

--WLUK-TV, the Fox network affiliate in Green Bay, Wis., the 69th largest market.

--WALA-TV, the Fox affiliate serving Mobile/Pensacola in the Florida area market, the No. 63 market.

--WBPG-TV, the WB network affiliate in the Mobile/Pensacola market.

--WTHI-TV, the CBS affiliate that serves Terre Haute, Ind., the No. 149 market.

In related deals, Emmis announced agreements to sell three other stations to Journal Communications Inc., of Milwaukee, and another to Gray Television Inc., of Atlanta.

The LIN acquisitions, which are subject to various regulatory approvals, could be completed in the first quarter of 2006, said Vincent L. Sadusky, LIN's chief financial officer. The company plans to raise additional cash to help pay for the acquisition, he said. Borrowing could take the form of publicly issued debt, bank loans or some combination, he said.

The company does not plan to dispose of any of the stations in its portfolio, Sadusky said in an interview yesterday. In fact, he said, "our goal is to continue to grow our business," he said.

The acquisitions would sharply increase LIN's annual net revenue. The company generated about $375 million in net revenue last year; the stations to be acquired had a combined total of about $60 million in net revenue last year, Sadusky said.

Total employment would also grow: LIN TV has about 1,900 employees, Sadusky said, and the stations to be acquired have about 350. (If the acquisitions are completed as planned, all 350 workers would initially transfer over to LIN TV; evaluations would follow, he said.)

The acquisitions would bring to seven the number of TV stations that LIN has acquired within about a year's time. The company bought two UPN affiliates from Viacom in March for $85 million: WWHO-TV, in Columbus, Ohio, and WNDY-TV, of Indianapolis.

Also yesterday, LIN said its board of directors has approved a share repurchase program, authorizing the company to buy back up to $200 million of the company's Class A common stock.

"We have concluded the current market value of the company represents an attractive investment opportunity and this action demonstrates our commitment to enhancing shareholder value," Chapman said in the statement.

Shares of LIN rose 24 cents yesterday to close at $14.35.

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Copyright (c) 2005, The Providence Journal, R.I.

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TVL, EMMS, JRN, GTN, VIA,

Source: Providence Journal

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