Sinclair On a Tear: Over $1.5 Bil in M&A
Sinclair is at it again, grabbing the Barrington TV group for $370 million, with those stations (18 owned plus management deals for six more) coupled with four more from Cox, acquired earlier in the week, to launch Sinclair subsidiary Chesapeake TV.
Sinclair has plunked down in excess of $1.5 billion for stations dating back to its $200 million buy of the Four Points group in September 2011, followed by $385 million for the Freedom Broadcasting stations in November, followed by $412.5 million for six Newport TV stations–and the $99 million for the Cox quartet and $370 million Barrington pickup.
There were a few smaller deals too, such as $54 million for WHAM Rochester in a separate pact with Newport, and WTTA Tampa for $40 million.
The Barrington announcement included word of Sinclair looking to sell WSYT Syracuse and WYZZ Peoria for regulatory reasons.
Keep in mind, Sinclair discussed the prospect of bankruptcy in 2009, when its stock was around a dollar, and it owned 58 stations.
Marci Ryvicker, analyst extraordinaire at Wells Fargo, likes the latest deal. “We view Barrington as a sensible addition to SBGI’s small market focus,” she wrote. “Recall that SBGI has created a new small market operating entity called Chesapeake TV. As we understand it, this operating entity is within the Sinclair umbrella but will provide the tailored support for small market stations and will be run by Steve Pruett (as COO), who was most recently CEO of Communications Corporation of America’s 25 television station group. We think the separate management of small and mid-size markets is one of the keys to a successful strategy given the distinct needs of these DMAs.”
Speaking of Communications Corp., the group is for sale, Pruett obviously knows them well, and Sinclair certainly appears to remain in acquisition mode. Perhaps there’s a match to be made.
Ryvicker’s bottom line? “Another smart move by SBGI. We continue to like SBGI’s accretive acquisitive streak.”
So does the rest of Wall Street, it appears. Sinclair stock is at $15.70 as I write this Friday afternoon. Before the Barrington deal was announced, it was a little over $14.
jamesjimcie commented:
Sinclair ought enter a JSA/LMA/SSA with KDBC and move all of KDBC operations into KFOX studios completely away from KTSM with Deerfield Media running KDBC in El Paso, Texas and also buy KPTM with Deerfield running KXVO in Omaha, Nebraska, KPTH with Deerfield running KMEG in Sioux City, Iowa, KMPH and KFRE in Fresno, California, and Deerfield running WCWG in Greensboro, North Carolina to keep those stations alive. Chesapeake TV gets KPTM/KXVO, KPTH/KMEG, and KDBC and Sinclair gets KMPH/KFRE, and WCWG. Sinclair may see KDNL getting CW in Saint Louis, and WXLV getting FOX and WCWG keeping CW in Greensboro-High Point while ABC moves to WGHP in Greensboro-High Point, ABC moves to KTVI and FOX moves to KPLR in Saint Louis and FOX moves to KWGN and CW moves to KDVR in Denver with Tribune for KPLR and KWGN and Local TV LLC for WGHP, KTVI and KDVR in a side deal unrelated to a Sinclair owned and or operated TV station. Sinclair ought to send KABB in San Antonio, and WMYV in Greensboro-High Point over to Cunningham while sending WSMH to Deerfield Media. I would favor Nexstar/Mission grabbing WPMI/WJTC, WHP/WLYH, WSYT/WNYS, WYZZ, KRCG, KHQA, KTVO, and KBTV from Sinclair with Sinclair grabbing KLRT/KASN, and WUHF from Nexstar/Mission. I would favor Raycom/American Spirit Media grabbing WFXL. I would favor London Broadcasting grabbing KGBT, and KVII/KVHI. I would favor Gannett buying WTTA to merge with WTSP, WUCW to merge with KARE, and KDNL to merge with KSDK.