Six Bidders Vie For WLNE
"Stalking horse" bid should be identified in a few weeks
By Michael Malone -- Broadcasting & Cable, 1/20/2011 4:35:48 PM
Six legitimate bidders have expressed interest in for WLNE Providence, says Steve Doerr, VP and general manager at the station. One from that group will be deemed the best fit by the court-appointed receiver in the next few weeks, both for the price it has offered and for the structure of the deal it proposes. The leading bidder's so-called "stalking horse bid" then sets the benchmark bid for a subsequent auction.
Doerr would not reveal the six interested parties due to a confidentiality agreement.
Global Broadcasting of Southern New England owns WLNE, an ABC affiliate in DMA No. 53. Around 80 people work at the station, which entered receivership in July. Similar to Chapter 11, receivership gives a distressed business concern breathing room to regroup and reorganize.
The media brokerage firm Cobb Corp. is handling the sale. Providence attorney Matthew McGowan is the appointed receiver of the station.
"It's a slow process," says Doerr, "but we're getting there."
Global Broadcasting acquired WLNE from Freedom Broadcasting for $14 million in 2007.
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Media General (WJAR) can legally own WLNE (LIN (WPRI)can too), by applying for a "failing station waiver" from the FCC.
WLNE qualifies for such a thing.
Peter Smith - 1/24/2011 8:45:27 PM EST -
Just do an LMA and a shell corporation to get around the duopoly rule. It's been done in markets like Duluth and Fort Wayne
EricPost - 1/21/2011 10:40:27 PM EST -
Hearst and Nexstar should also be in the mix. Both have synergies that could be exploited in order for WLNE to become profitable. Both operators are also at the forefront of extracting retransmission consent revenue that could help stabilize the finances of the long-struggling ABC affiliate.
Hearst could run WLNE as a semi-satellite of WCVB out of Needham while maintaining the Providence facility as a news bureau and local sales office. Any waiver that would be needed should be easy to obtain due to WLNE's "failing station" status as evidenced by its revenue shortfall and receivership of the station's licensee.
Nexstar already manages WLWC, the Four Points-owned CW affiliate in the Providence market. There are obvious synergies for consolidating the operations of WLNE at the same facility.
c handler - 1/21/2011 9:39:55 PM EST -
Media General already owned NBC affiliate WJAR-TV. The FCC does not allow duopolies between two of the four largest stations in a single market; this is clearly the case with the NBC and ABC affiliates in Rhode Island.
Daniel Belgrave - 1/21/2011 5:08:26 PM EST -
six bidders: i'll say 1.media general 2. Meredith
3. pro journal/belo 4.cox 5.smith/boston ventures
6.local tv
e davis - 1/20/2011 8:05:19 PM EST
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