Sinclair Broadcast Group Announces Agreement to Purchase Freedom Communications Television Stations for $385M
Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) announced today that it has entered into a definitive agreement to purchase the broadcast assets of Freedom Communications for $385.0 million. Freedom owns and operates eight stations in seven markets, reaching 2.63% of the U.S. TV households.
The transaction is subject to Freedom's shareholder approval which must be obtained by November 8, 2011, approval by the Federal Communications Commission, and customary antitrust clearance. Following receipt of antitrust approval of the transaction, which is expected to occur within thirty days, and prior to closing of the acquisition, Sinclair will operate the stations pursuant to a Local Marketing Agreement. The companies anticipate closing and funding of the acquisition to occur late in the first quarter/early in the second quarter of 2012.
Upon closing, the Company expects to finance the $385.0 million purchase price, less a $38.5 million deposit payable upon Freedom's shareholder approval, either through a bank loan or by accessing the capital markets.
