Entravision has struck a deal with OTA Broadcasting to buy two Palm Springs, Calif., stations.
Subject to FCC approval, Entravision will pay $21 million for NBC affiliate KMIR and MyNetworkTV affiliate KPSE.
The price is estimated at 6.5 times blended cash flow. Entravision will use proceeds from the broadcast incentive auction—it got $264 million—for the purchase. The FCC this week began paying winning TV station forward auction bidders, so Entravision should have the money in hand by next week.
Entravision said it expects to close the deal by the fourth quarter of 2017.
OTA, which is owned by computer exec Michael Dell, was essentially assembled to put stations in the auction and wound up being one of the biggest winners, raking in about $400 million for 10 stations.