Sinclair Broadcast Group Announces Strategic Initiative Creating Small Market TV Unit; to Buy Certain COX Media Stations
Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) (the "Company" or "Sinclair") announced that it has entered into a definitive agreement to purchase the stock and broadcast assets of four television stations owned by COX Media Group ("CMG") for $99.0 million less $4.3 million of working capital adjustments and entered into an agreement to provide sales services to one other station. The five stations are located in four markets and reach 0.9% of the U.S. TV households. The transaction is subject to approval by the Federal Communications Commission ("FCC"), and antitrust clearance. The Company anticipates the transaction will close and fund in the second quarter of 2013, subject to closing conditions. The Company expects to finance the purchase price, less $5.0 million in deposits, through a bank loan and/or by accessing the capital markets.
Due to FCC ownership restrictions, Sinclair will continue providing the services to KAME in Reno, NV that CMG has historically provided. The license assets of KAME will be purchased by Deerfield Media, Inc.
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