The company that buys KRON has to have money for the purchase (at whatever $ figure that may be) and enough to operate it long enough to bring it to profitability.
Among current duopolies:
Cox couldn't buy without selling KTVU or KICU.
NBC Universal couldn't buy without selling KNTV or K-whatever Channel 48, San Jose is.
CBS couldn't buy without selling KPIX or KBCW (44)
I think the key to what happens is whether there's improved profit to be had by spending money to change stations from a U to a V for a year.
Ya have to think about whether selling the current second-tier station will bring in enough cash to make it practical to buy KRON and sell the other, and whether there's any real value in owning the KRON analog and DT licenses.
When Over the Air was all there was, a low V dial position was valuable for coverage and lower transmitter operating costs. In some markets, being next to your market competitors on the dial had merit, as in 2, 4, 5, 7, 9, 11.
Also:
The sale price may have no relationship to what Young paid for it, since station prices are usually built around multiples of what the station is billing.
What's KRON billing per year?
Not enough to get mentioned in this story about the DMA billings:
http://www.broadcastingcable.com/article/CA6515709.html
"The nation's No. 6 DMA is poised to pull in $686.6 million in 2007, according to BIA Financial.
Cox's KTVU led the pack in 2006 with $133.7 million, ahead of NBC O&O KNTV ($116.8 million), KGO ($105 million) and CBS-owned KPIX ($100.5 million).
The DMA also features an array of smaller stations, including a CBS-owned CW outlet, NBC's Telemundo station, Granite's independent KBWB and Young Broadcasting's MyNetworkTV affiliate KRON, the latter the subject of constant sale rumors."
Political ad spending is expected to boost revenue in 2008, B&C reported. “The market's going to have a great 2008,” says KRON President/General Manager Mark Antonitis. “All I can say is, God, I love this country.”
BIA Financial predicts a 12 percent or greater uptick in the SF DMA.
See map at http://www.bia.com/pressitem1.asp?id=1115
So what about potential buyers not already players in the SF/Oak/SJ DMA?
If it has money after the Zell takeover, Tribune potentially COULD buy, and would then have a nice package of three stations in the state's largest markets and a station in markets 1, 2 ,3, 4, 5, 6, (SF).
That might be a move Zell's new Tribune TV honcho, (former Jacor/Clear Channel exec) Randy Micheals would go for.
http://www.tribune.com/pressroom/releases/2007/12212007.html
Hearst or Hearst/Argyle might also be a prospect. The newly relaxed FCC newspaper/television cross-ownership rules might make it possible. Or not.
http://www.broadcastlawblog.com/arc...broadcasters-under-other-ownership-rules.html
A reunited Chronicle/KRON could take advantage of the Hearst-owned Chronicle's news gathering forces and SF Gate's web presence to bolster KRON's programming and advertising reach.
KRON in the Hearst fold would connect it to market leader KCRA (NBC) Sacramento ad sister KQCA, (MyTV) Stockton and KSBW, Salinas-Monterey, and could offer some news program development opportunities. It might help create some programming that could be shared between KRON and fellow My TV affiliate KQCA.
With KTVU adding more news to both KTVU and KICU, it might make a difference for KRON.
More importantly, being able to sell comprehensive advertising packages including the Chronicle, KRON, and the other three stations to regional and national advertisers could help keep the Chron and KRON afloat at time when newspapers are struggling and KRON definitely is.
With either Tribune or H/A, expect to see some moves to get programs that draw more eyeballs, and that can be obtained at a price that enables profit.
What other companies have the chops to buy KRON?
Maybe Oak Hill Partners, the Robert Bass-founded company. It is spending 1.1 Billion to buy eight stations from News Corp, after buying the nine-station New York Times TV stations for $575 Million. Oak Hill subsidiary Local TV, LLC CEO Randy Micheals is now at Tribune. Local and Tribune have ties in which Local will provide back-room development services to Tribune.
Perhaps Cerberus Capital Management would like to add KRON to the four CBS stations it bought in Austin, TX, Salt Lake City, Providence, RI and West Palm Beach, FL for $185 Million.
Or Gannett? It bought WATL, Atlanta from Tribune for $180 Million and has both newspaper and broadcasting chops. KRON would be an out of market sister to Gannett's Sacramento ABC affiliate KXTV, 10. (News10)
Fresno's Harry Pappas loves a challenge and has made money taking turkeys and turning them into an attractive meal for viewers and advertisers alike. Although he's considering selling stations to "simplify my life,"
http://www.tvnewsday.com/articles/2007/12/19/daily.9/
... Pappas is still an active broadcaster committed to stations that are local, and the connection with Pappas would create a duopoly with Spanish TuVision network affiliate KTNC, 42, Concord and its satellite KUNO, 8, Fort Bragg.
Pappas owns KTRB (AM), 860, San Francisco, KMPH (AM) 840, Modesto, Pappas Television flagship KMPH-TV, 27,Fresno, KREN-TV, 27, (CW) and KAZR-CA, 46, (TuVision) Reno, and the Los Angeles Azteca America affiliate KAZA-TV, 54 Avalon, an affiliation agreement that was just renewed. He helped found Azteca America, and when that didn't produce the results he expected on his stations, he started TuVision, which is fed via IP pathways from servers at KREN/KAZR Reno.
Ted
Among current duopolies:
Cox couldn't buy without selling KTVU or KICU.
NBC Universal couldn't buy without selling KNTV or K-whatever Channel 48, San Jose is.
CBS couldn't buy without selling KPIX or KBCW (44)
I think the key to what happens is whether there's improved profit to be had by spending money to change stations from a U to a V for a year.
Ya have to think about whether selling the current second-tier station will bring in enough cash to make it practical to buy KRON and sell the other, and whether there's any real value in owning the KRON analog and DT licenses.
When Over the Air was all there was, a low V dial position was valuable for coverage and lower transmitter operating costs. In some markets, being next to your market competitors on the dial had merit, as in 2, 4, 5, 7, 9, 11.
Also:
The sale price may have no relationship to what Young paid for it, since station prices are usually built around multiples of what the station is billing.
What's KRON billing per year?
Not enough to get mentioned in this story about the DMA billings:
http://www.broadcastingcable.com/article/CA6515709.html
"The nation's No. 6 DMA is poised to pull in $686.6 million in 2007, according to BIA Financial.
Cox's KTVU led the pack in 2006 with $133.7 million, ahead of NBC O&O KNTV ($116.8 million), KGO ($105 million) and CBS-owned KPIX ($100.5 million).
The DMA also features an array of smaller stations, including a CBS-owned CW outlet, NBC's Telemundo station, Granite's independent KBWB and Young Broadcasting's MyNetworkTV affiliate KRON, the latter the subject of constant sale rumors."
Political ad spending is expected to boost revenue in 2008, B&C reported. “The market's going to have a great 2008,” says KRON President/General Manager Mark Antonitis. “All I can say is, God, I love this country.”
BIA Financial predicts a 12 percent or greater uptick in the SF DMA.
See map at http://www.bia.com/pressitem1.asp?id=1115
So what about potential buyers not already players in the SF/Oak/SJ DMA?
If it has money after the Zell takeover, Tribune potentially COULD buy, and would then have a nice package of three stations in the state's largest markets and a station in markets 1, 2 ,3, 4, 5, 6, (SF).
That might be a move Zell's new Tribune TV honcho, (former Jacor/Clear Channel exec) Randy Micheals would go for.
http://www.tribune.com/pressroom/releases/2007/12212007.html
Hearst or Hearst/Argyle might also be a prospect. The newly relaxed FCC newspaper/television cross-ownership rules might make it possible. Or not.
http://www.broadcastlawblog.com/arc...broadcasters-under-other-ownership-rules.html
A reunited Chronicle/KRON could take advantage of the Hearst-owned Chronicle's news gathering forces and SF Gate's web presence to bolster KRON's programming and advertising reach.
KRON in the Hearst fold would connect it to market leader KCRA (NBC) Sacramento ad sister KQCA, (MyTV) Stockton and KSBW, Salinas-Monterey, and could offer some news program development opportunities. It might help create some programming that could be shared between KRON and fellow My TV affiliate KQCA.
With KTVU adding more news to both KTVU and KICU, it might make a difference for KRON.
More importantly, being able to sell comprehensive advertising packages including the Chronicle, KRON, and the other three stations to regional and national advertisers could help keep the Chron and KRON afloat at time when newspapers are struggling and KRON definitely is.
With either Tribune or H/A, expect to see some moves to get programs that draw more eyeballs, and that can be obtained at a price that enables profit.
What other companies have the chops to buy KRON?
Maybe Oak Hill Partners, the Robert Bass-founded company. It is spending 1.1 Billion to buy eight stations from News Corp, after buying the nine-station New York Times TV stations for $575 Million. Oak Hill subsidiary Local TV, LLC CEO Randy Micheals is now at Tribune. Local and Tribune have ties in which Local will provide back-room development services to Tribune.
Perhaps Cerberus Capital Management would like to add KRON to the four CBS stations it bought in Austin, TX, Salt Lake City, Providence, RI and West Palm Beach, FL for $185 Million.
Or Gannett? It bought WATL, Atlanta from Tribune for $180 Million and has both newspaper and broadcasting chops. KRON would be an out of market sister to Gannett's Sacramento ABC affiliate KXTV, 10. (News10)
Fresno's Harry Pappas loves a challenge and has made money taking turkeys and turning them into an attractive meal for viewers and advertisers alike. Although he's considering selling stations to "simplify my life,"
http://www.tvnewsday.com/articles/2007/12/19/daily.9/
... Pappas is still an active broadcaster committed to stations that are local, and the connection with Pappas would create a duopoly with Spanish TuVision network affiliate KTNC, 42, Concord and its satellite KUNO, 8, Fort Bragg.
Pappas owns KTRB (AM), 860, San Francisco, KMPH (AM) 840, Modesto, Pappas Television flagship KMPH-TV, 27,Fresno, KREN-TV, 27, (CW) and KAZR-CA, 46, (TuVision) Reno, and the Los Angeles Azteca America affiliate KAZA-TV, 54 Avalon, an affiliation agreement that was just renewed. He helped found Azteca America, and when that didn't produce the results he expected on his stations, he started TuVision, which is fed via IP pathways from servers at KREN/KAZR Reno.
Ted
