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Cox Television sale

Y2kTheNewOldies

Y2kTheNewOldies

Cox Media to consider options for its TV stations

https://www.ajc.com/news/local/cox-...CT3s8ahfxiOSbL/?icmp=np_inform_variation-test

. Cox Enterprises announced today that it will explore strategic options for its ownership or other interest in 14 television properties, including partnering or merging the stations into a larger company.


. The company owns Atlanta’s WSB-TV Channel 2 Action News, which has been the dominant television station in the market and one of the leading stations in the industry throughout its 70-year history.

Cox also owns or has interest in stations in Seattle, Boston, Charlotte, Orlando, Pittsburgh, Memphis, Jacksonville, Tulsa and Dayton, Ohio.

“We didn’t take this decision lightly. It is clear that scale is critical for TV affiliates to be positioned well for the future. Our stations are some of the best in the industry and we want them to stay that way,” said Alex Taylor, president and chief executive officer of Cox Enterprises.
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Note these are all talks for now and they affect WSB-TV Atlanta and KIRO-TV Seattle.
 
I see a lot of broadcasters whipping out their checkbooks for these stations. The biggest question is what market they want to enter and which station they might have to give up just in case they enter one.
 
only1moore said:
I see a lot of broadcasters whipping out their checkbooks for these stations. The biggest question is what market they want to enter and which station they might have to give up just in case they enter one.
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If there wasn’t such a glutton of stations for sale, Cox probably would have rather sold their radio properties. They don’t have as much control of national sales for radio like they do for TV.
 
Interesting...a few years ago, they invested in a lot of online media, and then shut it all down in April. I just figured they were going to build the online network to replace all the towers and transmitters. Now it looks like they may be just cashing out completely.
 
If anyone is buying this group as a whole, it seems like Nexstar would be a good fit. They should be able to buy all of the stations except for Memphis and Dayton, where Nexstar already operates duopolies. The question is whether Nexstar has the finances to be able to do the transaction after its acquisition spree in recent years.
 
What about Gray buying Dayton? I've got to think radio isn't far behind but it also doesn't seem like medium market clusters are flying off the shelves (witness Scripps still having only sold 2 markets just into Q3.
 
I wouldn’t be surprised if Sinclair start circling around places like Atlanta, Jacksonville, Boston, Charlotte, or eye a duopoly if they get WHBQ to go along with the soon-to-be acquired WREG Memphis. Knowing the situation they’re in, they’ll find new ways to win over the FCC and DOJ, and that’s a big if.
 
PTBoardOp94 said:
If anyone is buying this group as a whole, it seems like Nexstar would be a good fit. They should be able to buy all of the stations except for Memphis and Dayton, where Nexstar already operates duopolies. The question is whether Nexstar has the finances to be able to do the transaction after its acquisition spree in recent years.
Click to expand...


Wait one Second Nexstar is apparently in talks with the Apollo Group though. Nexstar is eliminated from this talk though.
 
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)
 
Alex Taylor, president and chief executive officer of Cox Enterprises said, "We didn’t take this decision lightly. It is clear that scale is critical for TV affiliates to be positioned well for the future. Our stations are some of the best in the industry and we want them to stay that way".

So you stay best in class by...selling yourself off? Just be honest....you don't want to finance the repack.

G
 
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.
 
I am cross posting something I said in the local Boston TV section.

The way I read the statement makes me think that they are looking to "associate" with another TV operator to achieve the degree of scale needed to prevail in today's highly concentrated TV environment. Only if such an avenue is not found will they sell.

That seems logical, too. A like kind exchange of shares keeps the tax burden for the surviving heirs to a minimum. The family holds the chairmanship of the board, but operations are predominantly not family businesses. So the major goal is asset preservation and income, so a merger or similar arrangement avoids huge tax liabilities.

The Wall Street Journal says,

"The Atlanta-based company said Tuesday it is looking into options for the broadcast stations, part of Cox Media Group, which could include a partnership or merger into a larger television company."

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.
 
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.
Click to expand...

Also in Atlanta, CBS has a long-term affiliation agreement with WGCL. The Meredith duopoly there seems to be locked in.
 
nickp said:
Interesting to see what they do with WFXT My money is on FOX buying them back
Click to expand...
Doubtful. Even the Red Sox & Patriots as good as they are weren't good of a reason for Fox to keep the station

My guess is that Graham would absorb ALL the TV properties (Except for Jacksonville, there'd be no conflicts if they did)
 
DavidEduardo said:
I am cross posting something I said in the local Boston TV section.

The way I read the statement makes me think that they are looking to "associate" with another TV operator to achieve the degree of scale needed to prevail in today's highly concentrated TV environment. Only if such an avenue is not found will they sell.

That seems logical, too. A like kind exchange of shares keeps the tax burden for the surviving heirs to a minimum. The family holds the chairmanship of the board, but operations are predominantly not family businesses. So the major goal is asset preservation and income, so a merger or similar arrangement avoids huge tax liabilities.

The Wall Street Journal says,

"The Atlanta-based company said Tuesday it is looking into options for the broadcast stations, part of Cox Media Group, which could include a partnership or merger into a larger television company."

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.
Click to expand...
Not a good exception as Scripps is KEEPING them (Except for what seems to be KGUN 9 who STILL has the old Journal graphics last I checked)
 
only1moore said:
I wouldn’t be surprised if Sinclair start circling around places like Atlanta, Jacksonville, Boston, Charlotte, or eye a duopoly if they get WHBQ to go along with the soon-to-be acquired WREG Memphis. Knowing the situation they’re in, they’ll find new ways to win over the FCC and DOJ, and that’s a big if.
Click to expand...
With both on virtual VHF's - Not possible (Memphis is not NYC)
 
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)
Click to expand...
CBS can't even buy THE STUDIOS KIRO 7 is housed in (Let alone buy the station itself)
 
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