KRON for sale-Young hires advisers to help make a deal by first-quarter end

[artie fufkin]

6 days. Tick-tock!

Vince Young already said in the last earnings report that it's not likely the station will be "sold" (i.e. signing an asset purchase agreement) by the end of the quarter. Relax.

 

[LKellerIII]

"Vince Young already said in the last earnings report that it's not likely the station will be "sold" (i.e. signing an asset purchase agreement) by the end of the quarter. Relax."

Uh...I don't think anybody is tense about any sale of KRON. Well, maybe Vince Young is tense - he has reason to be.

It's the end of the quarter, and no sale. Is anybody surprised?

 

[JackBauer112]

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

You probably forgot one other potential buyer for KRON, Belo Corp. The former owner of KXTV 10 when Gannett swapped the station with Austin's ABC affiliate KVUE. They could be more profitable and this would mark their re-entry for Belo Corp which owns flagship station WFAA-TV ABC Dallas/Fort Worth, KHOU CBS Houston, KING 5 NBC Seattle and KGW NBC Channel 8 among those stations.

One more owner is Seattle based Fisher Communications which owns KOMO 4 ABC Seattle and KATU 2 ABC Portland and recently bought CBS affiliate KBAK-TV in Bakersfield earlier this year, so it's not really out of the question.

 

[1069_KIFR]

>>It's the end of the quarter, and no sale. Is anybody surprised?<<

I believe Vince Young is very surprised nobody paid them the price they wanted by now!

 

[JackBauer112]

Here are my list of potential owners that KRON should be sold to

1.) Belo Corp of Dallas, TX.
2.) Gannett Company of Washington, D.C.
3.) Hearst-Argyle Television of NYC
4.) Fisher Communications of Seattle, WA
5.) Tribune Company of Chicago IL, (Owned by Sam Zell)
6.) Nexstar Communications
7.) Allbrittion Communications
8.) McGraw-Hill Companies of Denver, CO
9.) Local TV LLC
10.) Providence Equity Partners/Newport Television or Cowles Broadcasting Company of Spokane, WA

 

[LKellerIII]

Here are my list of potential owners that KRON should be sold to

1.) Belo Corp of Dallas, TX.
2.) Gannett Company of Washington, D.C.
3.) Hearst-Argyle Television of NYC
4.) Fisher Communications of Seattle, WA
5.) Tribune Company of Chicago IL, (Owned by Sam Zell)
6.) Nexstar Communications
7.) Allbrittion Communications
8.) McGraw-Hill Companies of Denver, CO
9.) Local TV LLC
10.) Providence Equity Partners/Newport Television or Cowles Broadcasting Company of Spokane, WA

The economy is entering a serious an prolonged recession, and revenues at money losing KRON will be down even further. Presumably these companies you mention are either public and obligated to stockholders; or private, but run by sensible people.

Why would any of them want to buy an albatross like KRON?

 

[JackBauer112]

Here are my list of potential owners that KRON should be sold to

1.) Belo Corp of Dallas, TX.
2.) Gannett Company of Washington, D.C.
3.) Hearst-Argyle Television of NYC
4.) Fisher Communications of Seattle, WA
5.) Tribune Company of Chicago IL, (Owned by Sam Zell)
6.) Nexstar Communications
7.) Allbrittion Communications
8.) McGraw-Hill Companies of Denver, CO
9.) Local TV LLC
10.) Providence Equity Partners/Newport Television or Cowles Broadcasting Company of Spokane, WA

The economy is entering a serious an prolonged recession, and revenues at money losing KRON will be down even further. Presumably these companies you mention are either public and obligated to stockholders; or private, but run by sensible people.

Why would any of them want to buy an albatross like KRON?

I take it as if it was just a hunch. But look at WTVJ-TV in Miami/Fort Lauderdale, FL which was sold a while back to Post-Newsweek Stations Inc. I take it that WTVJ and WVIT were sold as part of the NBC Local Media Group focusing on the top 10 markets. While WTVJ-TV was sold to P-N pending approval by the FCC, and making it a duopoly to WPLG-TV Local 10, WVIT's sale was sold off as like them which they were facing what KRON is right now, NBC I believe called off the sale in late September of this year. But IMO, I would'nt hold my breath just yet for KRON being sold as of yet.

 

[Newschannel4SF]

More Changes at Channel 4

Mark Antonitis the General Manager at KRON has left and Michael Kelting will be leaving this coming Friday. Michael is the proud father of a new baby boy. Mike congratulations and you will be missed and sorry to see Mark go who was well respected here in the Bay Area Television Industry.

 

[Markxxx]

The Tribune is taking a beating. Zell overpaid, the only way he'd be interested is if he gets his billion dollars for the Cubs/Wrigley Field/Comcast Sports Network (20 some percent)

 

[Newschannel4SF]

Hacienda Heights

There is a new spanish (english) version soap opera starting this December on KRON. This appears to not be a My Network Tv series and will also be airing on stations in Reno (KRNV) and also in Tucson on (KVOA).

 

[LKellerIII]

Re: Hacienda Heights

There is a new spanish (english) version soap opera starting this December on KRON. This appears to not be a My Network Tv series and will also be airing on stations in Reno (KRNV) and also in Tucson on (KVOA).

Your post is a little confusing...if it will be on KRON, I presume it will be in English. FYI: Hacienda Heights is an uninorporated suburb in Los Angeles County - quite ethnically diverse, but predominantly Latino. I assume that will be the locale of the show.

 

[Michael Rivers Kramer]

Re: Hacienda Heights

There is a new spanish (english) version soap opera starting this December on KRON. This appears to not be a My Network Tv series and will also be airing on stations in Reno (KRNV) and also in Tucson on (KVOA).

Your post is a little confusing...if it will be on KRON, I presume it will be in English. FYI: Hacienda Heights is an uninorporated suburb in Los Angeles County - quite ethnically diverse, but predominantly Latino. I assume that will be the locale of the show.

I just knew there would be something to turn KRON-4 around.... :

 

[Newschannel4SF]

The reason I brought this up is because this may be a change in the not so popular My Network Tv programming that we have been seeing on KRON. I checked with KCOP MY13 in Los Angeles and I didn't see the show on their program schedule for December when KRON will begin running it. What kinda of is unique is the fact that KRNV in Reno and KVOA in Tucson mentioned in my last post are both NBC affiliates
for what thats worth....

 

[Newschannel4SF]

No buyers for KRON-TV and the station will continue under the Young umbrella during this fourth quarter. Young said it will continue to seek a buyer.

 

[1069_KIFR]

"Under the Young Umbrella"
Although KRON is a discontinued property, that umbrella may have lots and lots of holes in it!

 

[LKellerIII]

"Under the Young Umbrella"
Although KRON is a discontinued property, that umbrella may have lots and lots of holes in it!

OK - I'm no financial expert, but what's this "discontinued" property BS? Sounds like some kind of financial chicanery to me to make their balance sheet look better. How can you take a property that's a liability off your books just be declaring it "discontinued" if you still have to pour money into it to keep it operating?

Maybe somebody can explain that...

 

[JackBauer112]

Well, it looks like with Young Broadcasting unable to sell KRON-TV (IMO Belo Corp should've been their owner because they owned KXTV 10 from 1984-1999 before selling them to Gannett) Young is filing for Chapter 11 Bankruptcy protection. How pathetic could they get not able to sell KRON since it is their jewel. But then again, KRON is nothing more than a joke ever since their NBC loss nearly 7 years ago in 2002. Things just haven't been the same since.

 

[LKellerIII]

Well, it looks like with Young Broadcasting unable to sell KRON-TV (IMO Belo Corp should've been their owner because they owned KXTV 10 from 1984-1999 before selling them to Gannett) Young is filing for Chapter 11 Bankruptcy protection. How pathetic could they get not able to sell KRON since it is their jewel. But then again, KRON is nothing more than a joke ever since their NBC loss nearly 7 years ago in 2002. Things just haven't been the same since.

I've heard Young use that "jewel" analogy before. So let me update the analogy by saying that they took a diamond and turned it into cubic zirconia.

Here's a link about the possible Chapter 11 filing - stating they have $825 million in long term debt. Hmm...that's just a little more than they paid for KRON...

http://dallas.bizjournals.com/sanfrancisco/stories/2008/11/17/daily43.html

 

[LKellerIII]

Young Broadcasting announced today (Thurs., Jan. 9, 2008) that it had hired advisers to help it sell it's San Francisco My TV affiliate, KRON, 4, San Francisco, eight years after purchasing what was then the Bay Area's NBC affiliate.

Not that anybody cares anymore, but I thought I'd note the milestone. January 9th will be the one year anniversary of Young Broadcasting's announcement that they intend to sell their KRON, their broadcast "jewel" by the end of first quarter 08.

I'm sure we're all past thinking Young will get any takers in 2009. I do have to give a mild "cheer" to Young, however, since KRON has managed to tread water, and not get any worse in the past 12 months. That's something, I guess...

 

[Newschannel4SF]

We have learned that Jan Wahl KRON's Movie Critic contract will not be renewed. This unfortunately comes as another misfortune to a station that has lost some of the Bay Area's best personalities.