| 
Tribune to Acquire WTTV-TV (WB4), Indianapolis
Purchase
creates company's fourth duopoly
CHICAGO, April 19, 2002 -- Tribune
Company (NYSE:TRB) announced
today that it has agreed to acquire the assets of WTTV-TV
(WB4), Indianapolis, and its satellite station WTTK-TV in
Kokomo, Ind., from Sinclair Broadcast Group (Nasdaq: SBGI)
for $125 million. The purchase price represents a multiple
of 11x pro forma 2002 EBITDA, including duopoly savings. The
transaction is intended to be structured as an asset exchange,
funded with the proceeds from the sale of certain Tribune
Denver radio assets to Entercom Communications Corp., which
is currently managing the Denver radio stations.
"We have stated our intention to be a
consolidator in television, and this is another step in that
direction," said Dennis FitzSimons, Tribune Company president
and chief operating officer. "This transaction creates
our fourth duopoly and adds to our position as The WB Network's
largest affiliate group."
FitzSimons added, "It makes both strategic
and financial sense-we are exiting Denver radio at a premium
cash flow multiple and are acquiring WTTV/WTTK in an excellent
Midwest market. By creating a two-station cluster in Indianapolis
we have immediate opportunities to reduce costs and improve
revenue, which makes the purchase price very attractive in
today's environment."
Tribune acquired WXIN-TV (Fox59), Indianapolis,
in 1997. Upon completion of this acquisition, Tribune Broadcasting
will own 24 stations with a combined reach of 38.4% of U.S.
television households (nearly 29% by Federal Communication
Commission standards).
"The Indianapolis duopoly significantly
increases Tribune's presence in that market. WTTV has always
been a strong VHF competitor and coupled with WXIN, Tribune
stations will be the leading provider of information and entertainment
programming to the country's 25th largest market," said
Pat Mullen, Tribune Television president.
The transaction is expected to close during
the fourth quarter 2002, pending regulatory approvals.
:: :: ::
Tribune Broadcasting owns and operates
24 major-market television stations, including national superstation
WGN-TV, and reaches more than 80 percent of U.S. television
households. The group's investment interests include The WB
Television Network (22%) and TV Food Network (31%). Los Angeles-based
Tribune Entertainment develops and distributes first-run television
programming for the Tribune station group and for national
syndication. Tribune Broadcasting also owns and operates Chicago's
WGN-AM and the Chicago Cubs baseball team.
TRIBUNE (NYSE:
TRB) is one of the country's premier media companies,
operating businesses in broadcasting, publishing and on the
Internet. It reaches more than 80 percent of U.S. households,
and is the only media company with television stations, newspapers
and Web sites in the nation's top three markets. Tribune media
span 23 major-market television stations, including national
superstation WGN-TV; 12 market-leading daily newspapers, including
the Los Angeles Times, Chicago Tribune and Newsday; and news
and information Web sites in 18 of the nation's top 30 markets.
|
