Sinclair Broadcast Group Inc. said Tuesday that it will make a $20 million cash
investment in Summa Holdings Ltd., a mid-Atlantic holding company controlled by
Sinclair president and CEO David Smith that owns automobile dealerships, retail
tire franchises and a car-leasing company.
The investment will represent a 17.5 percent equity interest and will give
Sinclair another board seat in addition to Smith's.
Sinclair said Summa will use the proceeds solely to acquire automobile
dealerships, and it will commit to advertising with Sinclair's Baltimore stations,
WBFF-TV and WNUV-TV.
"Because the automobile industry represents the largest category of
advertisers for television stations, and because Summa is a profitable and
well-run company, we believe the Summa investment is an attractive one for
Sinclair," said Martin R. Leader, a member of Sinclair's board and chairman of
the special committee.