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KRON for sale-Young hires advisers to help make a deal by first-quarter end
- Thread starter TedL
- Start date
"NBC might buy Channel 4 just to get back on the Sutro Tower. How's reception of KNTV vs. the Sutro Tower stations? I think NBC should sell KNTV after purchase and it will become an independent station. It will be like ABC 7 in both cities once this is completed."
I'm not an expert on either finances or broadcasting, but the problem with both the Cox and NBC speculation is that it doesn't seem to make sense, economically.
After - what - 6 years, everybody is used to tuning in NBC on 11 or Cable 3 - most people have cable or satellite, and NBC spent a lot of money to move KNTV's transmitter. What's the economic up-side from spending maybe $500 million more to buy KRON? Switching NBC programming back to KRON, then turning KNTV into an independent station certainly devalues KNTV and would depress what NBC could get for it.
Though the Spanish language market is certainly growing, I don't see the economic upside in moving Telemundo programming to 4 and selling TV48, either.
What would Cox gain? Move FOX to KRON so they can call it "Fox 4?" Stupid. Move KICU programming to 4 making KICU a worthless empty shell with no programming (similar to KRON in 02)? Also stupid.
I'm not an expert on either finances or broadcasting, but the problem with both the Cox and NBC speculation is that it doesn't seem to make sense, economically.
After - what - 6 years, everybody is used to tuning in NBC on 11 or Cable 3 - most people have cable or satellite, and NBC spent a lot of money to move KNTV's transmitter. What's the economic up-side from spending maybe $500 million more to buy KRON? Switching NBC programming back to KRON, then turning KNTV into an independent station certainly devalues KNTV and would depress what NBC could get for it.
Though the Spanish language market is certainly growing, I don't see the economic upside in moving Telemundo programming to 4 and selling TV48, either.
What would Cox gain? Move FOX to KRON so they can call it "Fox 4?" Stupid. Move KICU programming to 4 making KICU a worthless empty shell with no programming (similar to KRON in 02)? Also stupid.
Well, the idea with Cox is that they'd have both the Fox and My Network TV affiliates, but I can't see the FCC allowing this one.
I doubt NBC would buy it as well, since KNTV-DT is on channel 12 and will cost much less to operate and likely have much better coverage due to being on VHF. (KRON-DT is on UHF)
I could see Fox getting it though, as a My Network TV affiliate (Fox is smarter than to pull their affiliation from KTVU--don't mess with success).
- Trip
I doubt NBC would buy it as well, since KNTV-DT is on channel 12 and will cost much less to operate and likely have much better coverage due to being on VHF. (KRON-DT is on UHF)
I could see Fox getting it though, as a My Network TV affiliate (Fox is smarter than to pull their affiliation from KTVU--don't mess with success).
- Trip
radioprince said:
Yeah, I'm sure that it is real likely that the owners of KTSF would be able to cough up the amount of money that KRON would be likely to sell for. Even with the collapse in value on this station, the amount of money that KRON would sell for is far in excess of what could be made running multilingual programming on it -- and that's making the dubious assumption that the KTSF owners could even get the funding to make the acquisition.
KTN Corp said:
KNTV is apparently the second highest billing station in the SF/Oakland market, right after KTVU. So apparently NBC is making do just fine despite the disadvantage of not being on the Sutro Tower. So why spend a lot of money to buy KRON and fix something that doesn't seem to be much of a problem?
Lkeller said:
Everyone used to 11/3? KMSP in Minneapolis/St. Paul and its sister station switched networks around 6 years ago. I guess the "Make the Switch" campaign was successful.
How about NBC back on 4, Telemundo moving to Ch. 11, and sell KSTS to an independent station company? I think the new NBC 4 logo will have a white 4 to match the golden 4 on KNBC.
I don't think with DTV this matters much. Oh sure there is channel position but I bet with some wangling NBC could wangle a better channel through PSIP. I know that the stations have to use their NTSC channel but who says that rule is forever?
Right at the moment with the shaky economy and the digital transition TV stations aren't what they used to be. They will pick up again, probably, but it'll take a bit of doing.
Besides with the subchannels NBC if it got less than stellar reception could put their programs on a digital subchannel of another station, through a local agreement. True it wouldn't be High Def, but it'd be extra income for a smaller TV station that could reach the north end of the Bay market and it would bring NBC to those who don't want cable or don't care all that much about High def
Right at the moment with the shaky economy and the digital transition TV stations aren't what they used to be. They will pick up again, probably, but it'll take a bit of doing.
Besides with the subchannels NBC if it got less than stellar reception could put their programs on a digital subchannel of another station, through a local agreement. True it wouldn't be High Def, but it'd be extra income for a smaller TV station that could reach the north end of the Bay market and it would bring NBC to those who don't want cable or don't care all that much about High def
"How about NBC back on 4, Telemundo moving to Ch. 11, and sell KSTS to an independent station company?"
But why? Yes, it's all neat and tidy and puts NBC back "where it should be" like LA, New York, and wherever else. But in this cable-satellite-HDTV era, what's the upside for NBC? Even with KRON's depressed value, I'm sure it's worth more than KSTS. So NBC would spend a lot of money to re-shuffle the dial and confuse people for a few weeks.
And if you're talking about dial positions, I think one could make a good argument that 3 is superior -for cable viewers, in any case.
But why? Yes, it's all neat and tidy and puts NBC back "where it should be" like LA, New York, and wherever else. But in this cable-satellite-HDTV era, what's the upside for NBC? Even with KRON's depressed value, I'm sure it's worth more than KSTS. So NBC would spend a lot of money to re-shuffle the dial and confuse people for a few weeks.
And if you're talking about dial positions, I think one could make a good argument that 3 is superior -for cable viewers, in any case.
Lkeller said:
$500 million? Not a chance.
Think about this. Before the WB folded, Granite had a deal in place to sell Channel 20 for $65 million. If you take into account that KRON has a news department and someone were to give a little something for its history (even though people who buy TV stations don't buy based on it's history), Young would be extremely lucky to get an offer for $200 million.
Do you really think that NBC, a company that has been cutting costs to the bone, is going to shell out a couple hundred million for a license? By the way, KRON will be moving its digital operations from channel 57 to channel 38 before the February 2009 deadline. In it's FCC filing on Feb. 21, Young told the Commission it will retune one of the cabinets housing the channel 57 transmitter in December to work on channel 38. Then in May 2009, it will retune the second transmitter cabinet to channel 38. That means KRON will be at reduced power for several months. Do you really think NBC wants to be at reduced power and pay for the conversion when it already has a full power digital facility up and running and paid for?
If NBC decides to buy KRON it will probably be moved down to their new facilities in San Jose. Channel 4 will be licensed to San Francisco but will be broadcast out of their San Jose facilities. You will see more shows originating from Burbank or the new NBC/Universal state of the art Broadcast Center they are moving to. The current KRON Van Ness location will more than likely be sold or converted into condos/appartments. Regarding the reduced power I'm sure there will be a workaround if they go that route.
Telemundo would be moved to Channel 11 and KSTS/48 would more than likely be sold off to another Spanish Broadcasting chain or group.
Telemundo would be moved to Channel 11 and KSTS/48 would more than likely be sold off to another Spanish Broadcasting chain or group.
peteb said:
Of course they would operate the station from San Jose. To move to Van Ness would amount to throwing millions of dollars down the drain. Your statement about more shows from Burbank is nonsense. The only thing produced in San Jose is local news. The master control and traffic departments for KNTV and KSTS are already in Burbank. So, under your scenario, if NBC bought KRON, sold the KRON studio building for development and sold KSTS (which isn't likely since KNTV would be more attractive on the open market), it would have to find a buyer who wouldn't need a studio building. or employees to run master control or traffic.
You also ignored the fact that if NBC owned KRON and sold either KNTV or KSTS, it would have the problem of operating two stations from two different transmitter sites. It's not as if NBC can simply pack up from San Bruno and relocate to Sutro.
You are more likely to see NBCU go after the Weather Channel than KRON.
G
gibby88
Guest
1069_KIFR said:
I'll take a wild guess here. Fox's Orlando duopoly?
Fox/Young Station Swap in Florida
The stations in Orlando are WOFL and WRBW - Fox currently owns these stations and Young would take over and essentially give-up ownership of KRON. Fox would operate KRON as a MYTV O&O until the KTVU Fox affiliation ends in a couple of years. This is only speculation but I think its headed in this direction.....
The stations in Orlando are WOFL and WRBW - Fox currently owns these stations and Young would take over and essentially give-up ownership of KRON. Fox would operate KRON as a MYTV O&O until the KTVU Fox affiliation ends in a couple of years. This is only speculation but I think its headed in this direction.....
I'm going to have to agree with your thinking on this one - but why would Fox want to swap or have anything to do with Young and all their debt - credit wise they are practically off the Nasdaq.
1069_KIFR said:
In this item about Young's 2007 Q4 performance:
http://news.moneycentral.msn.com/ti...bol=US:YBTVA&feed=BW&date=20080307&id=8299100
"Based on current information, it is unlikely that the Company will be able to enter into an agreement to sell KRON-TV before March 31, 2008. We continue moving forward in the sale process"
Young has also been given a NASDAQ "delisting" notice, because its stock price has been under a dollar a share for more than 30 days.
It closed at 84 cents a share today (3/13/08) up from 78 cents the day before.
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