FCC approves Tribune Co. acquisition of Local TV

Tribune Co.’s $2.73 billion acquisition of Cincinnati-based Local TV LLC was approved by the Federal Communications Commission Friday.

The deal makes Tribune Co. the largest combined independent television station owner and content creator in the U.S., according to the company.

The acquisition, struck in July, adds 19 television stations in 16 markets to Tribune Co.’s existing portfolio of 23 stations. Once completed, the Chicago-based media company will reach 50 million homes across the U.S.

"On behalf of thousands of Tribune and Local TV employees across the country, I want to thank the Commission for reaching this decision; we are extremely pleased to move forward with the transaction," Peter Liguori, Tribune Co.’s president and CEO said in a statement.  

"The logic and investment thesis underlining our acquisition of Local TV is as powerful as it is simple—in a fragmenting media landscape, there is value in scale, for our viewers, advertisers, networks, cable and satellite partners and, most important, the communities we serve.  We are very excited to bring the employees of these two great companies together."

As part of the approval process, Tribune Co. transferred control of three newly-acquired stations – WTKR-TV and WGNT-TV in Norfolk, Va., and WNEP-TV in Scranton, PA. – to Dreamcatcher Broadcasting for $27 million.  The stations are in the same markets as Tribune Co.'s Daily Press in Newport News, Va. and The Morning Call in Allentown, Pa., which is prohibited by the FCC’s newspaper/broadcast cross-ownership rules.

Dreamcatcher is owned by Ed Wilson, the former president of Tribune Broadcasting, and has no other media interests. Tribune Co. has an exclusive option to buy back the stations “under specified circumstances,” and will operate them under a shared services agreement.

Tribune Co. emerged Dec. 31 from a four-year stay in Chapter 11 bankruptcy. In addition to the TV stations, the company owns national cable channel WGN America; WGN-AM 720; eight daily newspapers including the Chicago Tribune and Los Angeles Times; and other media assets.

Last week, Tribune Co. filed a registration statement with the Securities and Exchange Commission, a key step in the planned spinoff of its publishing business, which is expected to take place during the first half of 2014. Once the spinoff is completed, only the newspapers and associated publishing assets will move to the new company, with Tribune Co. focusing on its higher-margin broadcasting business.

The acquisition of Local TV will add stations in Denver, Cleveland, St. Louis, Kansas City, Mo., Salt Lake City and Milwaukee, among other markets. After the deal’s closing, Tribune Co. will own 14 stations in the top 20 markets, including 14 CW stations and 13 FOX stations, the largest affiliate group for each network. 

The combined portfolio will make Tribune Co. the largest station owner in terms of coverage, reaching nearly 50 million TV households and 44 percent of the U.S., according to SNL Kagan.

Source: http://cablequest.org/news/international-news/item/3875-fcc-approves-tribune-co-acquisition-of-local-tv.htmlSource: http://cablequest.org/news/international-news/item/3875-fcc-approves-tribune-co-acquisition-of-local-tv.html