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Cox Television sale

DavidEduardo said:
That sounds to me like they are looking at low-tax or no-tax options, not outright sales. Because all the stations were acquired at low or no cost, the capital gains taxes would reduce the proceeds significantly, while a merger preserves all or nearly all the capital.
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The thing that will probably hurt Cox the most in doing this is that they are a multi-platform media company that is mainly based in OLD MEDIA. Namely, print, radio, and local TV affiliates. The kinds of companies that are looking for this kind of deal and expansion aren't at all interested in newspapers or radio. They're moderately interested in local TV stations. But even Sinclair is looking to create some kind of national footprint that Cox simply doesn't have. So what Cox brings to the table is a lot of horse & buggy technology while the rest of the industry is in another galaxy.
 
I'm of the opinion that a Meredith-Cox tie-up seems sensible. The only overlap market, IIRC, is Atlanta, where WGCL could be sold to CBS or Gray/Raycom.

- Trip
 
tripinva said:
The only overlap market, IIRC, is Atlanta, where WGCL could be sold to CBS or Gray/Raycom.

- Trip
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What about WPCH?

I think Scripps might make a little more sense. Larger company, larger existing footprint, more large market experience...and a common link in newspaper publishing.

G
 
upstate29651 said:
I think Scripps might make a little more sense. Larger company, larger existing footprint, more large market experience...and a common link in newspaper publishing.
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If so, that's bad for Cox Radio, because earlier this year, Scripps put its radio division on the market.
 
TheBigA said:
If so, that's bad for Cox Radio, because earlier this year, Scripps put its radio division on the market.
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Did Scripps have the same "synergy" as Cox does in markets where it had tv and radio? Might make Scripps re-think a few things.

G
 
upstate29651 said:
Did Scripps have the same "synergy" as Cox does in markets where it had tv and radio? Might make Scripps re-think a few things.
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In some markets, yes:

"The divestiture of these stations – which were acquired through the company's 2015 acquisition of Journal Communications – would result in the separation of Scripps's television stations in Tulsa, Omaha, Milwaukee, Boise and Tucson from their co-owned radio clusters."
 
only1moore said:
One problem with CBS eyeing a Atlanta duopoly. WSB has loyalty with ABC, so that one can be ruled out. Seattle on the other hand could be a possibility.
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Not necessarily. Though, CBS would have to pay a truckload of money to the current CBS affiliate to change networks, as a new long-term agreement was signed in 2017.
 
Cox missed their chance(s) to buy and expand their station group. We all know they've had many years to do it. Now, they are throwing in the towel, as it is too late.
 
Markxxx said:
So Cox is considering selling them one by one? I wonder if CBS cares anymore about buying stations? Seems like Atlanta and Seattle (duopoly, they already own KSTW)
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CBS is eliminated from the talks over getting some of the Cox Stations because one you have a fight over the Redstones vs. moonves lawsuit over National Amusements role in making CBS merge with Viacom with both sides accusing each other over interfering with investments. Plus we have to wait on The National Amusements Board to decide who should take over the CBS CEO seat and CBS News management seat given the latest on Moonves and Fager accused of Misconduct.

For Now I have no idea How the Cox talks is going to play out though.
 
Any possibilities in mind for an acquisition partner? I don't think the network O&Os would be going after them. Tegna is certainly out with the number of stations in top-markets. Perhaps the other two newspaper-heritage owners, Hearst and Scripps, might be interested in most or all of the stations. There are also several "new media" ownership groups such as Nexstar, Meredith, Gray, et al. that specialize in medium-to-small markets that might want outlets that are closer towards the top.

Out of the blue, I could see Graham take an opportunity to expand out of the 6-group (single station in each market) all-VHF, Big 3 network affiliate, stale 2-decade old model, now with a flush Jeff Bezos from his Amazon holdings. BTW Out of a stroke of luck, the company owns KPRC-TV here in Houston, now the largest NBC affiliate (but not their flagship station) and their only top-10 market station (DMA #7).
 
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I could see Hearst or Scripps pairing up with Cox’s flagship in Atlanta, WSB. Tegna and Meredith already have duopolies there and most all other stations are owned by a network.
 
Cox may not be as large as a Tegna or Nexstar, but that never appeared to be their model. Their model seemed to be more focused on being the market leader in TV, and use radio to build synergies where possible. Even now, that's not a bad strategy. Are they just "done" with broadcasting for whatever reason? Something doesn't make sense here.

G
 
upstate29651 said:
Are they just "done" with broadcasting for whatever reason? Something doesn't make sense here.
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Apparently yes. Cox is a private, family-owned company, and from what I can see, the family is at a point, after about 130 years, that they want the assets sold and the money divided among the family members.
 
TheBigA said:
Apparently yes. Cox is a private, family-owned company, and from what I can see, the family is at a point, after about 130 years, that they want the assets sold and the money divided among the family members.
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Is this the same company owning the Cox cable systems?
 
landtuna said:
Is this the same company owning the Cox cable systems?
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Same overall company, Cox Enterprises, but separate division: Cox Communications. The TV & radio stations are under the Cox Media Group.

It's all 99% owned by the Cox family. I haven't seen any news about them selling Cox Communications.
 
https://www.ftvlive.com/sqsp-test/2018/10/9/this-should-scare-the-hell-out-of-cox-employees

Theres Rumors that Sinclair wants Cox Owned stations like WSB and KIRO.

Sinclair’s CEO CEO Chris Ripley said that the company could look at acquiring 14 TV stations currently owned by Cox.

Ripley said Sinclair wants to be one of the last few remaining broadcasters after consolidation.

"We are absolutely in the market for broadcast stations," Ripley said. "From an FCC perspective there is nothing that prevents us from moving forward on future license transfers. We are actively looking at opportunities as we speak and preparing for bigger opportunities like the one I mentioned earlier, Cox."
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https://www.bizjournals.com/baltimo...roadcast-ceo-eyes-deal-for-foxs-regional.html

Update Sinclair is a Rumored party to get the Cox Stations.

Sinclair Broadcast Group Inc. is eyeing potential deals with its attempted takeover of Tribune Media Co. a thing of the past.

CEO Chris Ripley said Tuesday the pipeline for mergers and acquisitions "is quite full right now." In particular, Hunt Valley-based Sinclair could look at acquiring 14 TV stations currently owned by Cox Enterprises Inc. or 21st Century Fox Inc.'s portfolio of 22 regional sports networks.

Ripley called the regional sports networks an "interesting fit" because Sinclair's already has the infrastructure in place to improve production, administration and sales for the networks. Sinclair (NASDAQ: SBGI) is the largest TV broadcaster in the U.S. with 191 television stations in 89 markets.

The regional sports networks are up for sale because the Walt Disney Co.'s (NYSE: DIS) acquisition of Fox (NASDAQ: FOX). The U.S. Department Justice made the sale of the networks a condition for approval of the $71 billion deal. Guggenheim Securities valued the package at $22.4 billion, the Los Angeles Times reported.

""It’s a very interesting fit," Ripley said "It of course has to be at the right value. It has to be accretive."
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