Would Gannett part with WCSH/WLBZ?

[jdb820]

With Nexstar and Sinclair buying everything in sight while companies like Hearst and Gannett stand pat and are totally passive, I'm starting to wonder if Gannett would part with WCSH and WLBZ for the right price. Portland and Bangor are two of their smallest markets, they're a corporate outlier, and when a company wants to dominate they'll find a way to do so. Both would be a good fit with Nexstar now in Burlington and I'm sure Sinclair would swap WGME for WCSH and WLBZ if given the chance.

All this buying makes Sinclair's selling of WGGB and pending sale of WLWC look very, very shortsighted.

 

[Joseph_Gallant]

Given that both WCSH-6 and WLBZ-2 are NBC affiliates, would WHDH-7 Boston owner Ed Ansin be interested??

He'd be able to expand his New England footprint with TV stations up the coast from Boston to central Maine, and all three would be NBC affiliates, which might make him a bigger "force" with the network.

 

[newsbot]

I seriously doubt Ansin would be remotely interested in small market TV; he's all about major market razzle-dazzle. I doubt Gannett would sell WCSH/WLBZ, which is solidly profitable and has a dominant news franchise. Hearst has to be running out of patience with WMTW, which is still spinning its wheels and has lost the NECN and Dempsey Challenge franchises; I could easily see Nexstar buying them (and WVII up in Bangor, for that matter, which would create newsgathering and back office synergies not unlike WCSH/WLBZ.) I'm surprised WPFO isn't in a LMA/SSA with Sinclair by now; they're already six years into a news revenue-sharing arrangement. I wouldn't count out Divcom selling WABI, either; they're pretty much out of the TV business at this point apart from Bangor and Gainesville. Sinclair sold WGGB and WLWC because they didn't have duopoly partners in those markets; very smart business decision on their part.

 

[jdb820]

I seriously doubt Ansin would be remotely interested in small market TV; he's all about major market razzle-dazzle.

And the major market opportunities left are about zilch. When he dies, Sunbeam dies since there just isn't enough of the growth that they'd desire. Maybe more gossip columns need to pick what stations they want to buy.

I doubt Gannett would sell WCSH/WLBZ, which is solidly profitable and has a dominant news franchise.

It's also an outlier and Gannett (less a Hearst merger) really has nowhere else to grow in the New England. What good can be made in a medium/small market combo?

Hearst has to be running out of patience with WMTW, which is still spinning its wheels and has lost the NECN and Dempsey Challenge franchises; I could easily see Nexstar buying them (and WVII up in Bangor, for that matter, which would create newsgathering and back office synergies not unlike WCSH/WLBZ.)

Hearst really doesn't give up on stations so I have a hard time seeing them walking away from WMTW unless they get something in return for it. Also, who would they hook up with in the Portland DMA? The New Age stations?

I'm surprised WPFO isn't in a LMA/SSA with Sinclair by now; they're already six years into a news revenue-sharing arrangement.

IIRC, once you enter into one kind of agreement it's hard to shift to a new one (it's half of why in Harrisburg Sinclair runs a station Nexstar owns via a heritage LMA which has passed through several owners). I wouldn't be shocked to see Sinclair's shell of choice by that point just buy WPFO outright and JSA/SSA it.

Sinclair sold WGGB and WLWC because they didn't have duopoly partners in those markets; very smart business decision on their part.

And yet they stay in Tampa, Minneapolis, Des Moines, St. Louis, Madison, Lexington, Norfolk, Richmond, and Tallahassee (I might be missing a few) where they have no duopoly opportunities. And they've acquired or are acquiring a bunch of markets (Austin, Kalamazoo, Chattanooga, Medford OR, Steubenville, McAllen, Toledo, Hannibal MO, Columbia MO, Kirksville MO, Marquette, Albany GA) which have no viable duopoly opportunities either. Aside from Austin, Providence and Springfield look good in contrast to the second group and Providence looks good compared to much of the first. They aren't in the duopolies-or-bust business Nexstar is.

 

[newsbot]

And the major market opportunities left are about zilch. When he dies, Sunbeam dies since there just isn't enough of the growth that they'd desire. Maybe more gossip columns need to pick what stations they want to buy.

What more does Ansin desire? If he dies, sure, the stations could go on the block. But that doesn't mean he's interested in a medium/small market combo.

It's also an outlier and Gannett (less a Hearst merger) really has nowhere else to grow in the New England. What good can be made in a medium/small market combo?

It may be an outlier, but it's an outlier that Gannett actively pursued and not as part of a larger group buy. They seem quite happy with the results they're achieving and they keep investing in news and technology and continue to import management from their larger-market stations to oversee it.

Hearst really doesn't give up on stations so I have a hard time seeing them walking away from WMTW unless they get something in return for it.

Unless Hearst sees WMTW as a farm team for nurturing talent and management, it's hard to see what they're getting out of it apart from a lot of headaches. There's a financial cost and a cost in corporate management distraction keeping an underperformer like Channel 8 going.

BTW, the New Age stations have been sold (again):
http://rbr.com/second-try-to-sell-portland-me-de-facto-duopoly/

The JSA/SSA tied into that deal would seem to preclude the partnerships that have been undertaken in recent years in markets of similar size, such as Albany, NY. I imagine the new owners will have the same problems New Age Media has had making two bottom-tier stations turn a profit.

IIRC, once you enter into one kind of agreement it's hard to shift to a new one (it's half of why in Harrisburg Sinclair runs a station Nexstar owns via a heritage LMA which has passed through several owners). I wouldn't be shocked to see Sinclair's shell of choice by that point just buy WPFO outright and JSA/SSA it.

I wouldn't be surprised to see the Armstrong Williams-fronted shell take WPFO eventually, which would at least provide lip service to the minority ownership goals of the FCC (current WPFO licensee CMCG is also minority owned.) Max Media, which owns 49% of CMCG, operates the station, which might complicate things a bit.

And yet they stay in Tampa, Minneapolis, Des Moines, St. Louis, Madison, Lexington, Norfolk, Richmond, and Tallahassee (I might be missing a few) where they have no duopoly opportunities. And they've acquired or are acquiring a bunch of markets (Austin, Kalamazoo, Chattanooga, Medford OR, Steubenville, McAllen, Toledo, Hannibal MO, Columbia MO, Kirksville MO, Marquette, Albany GA) which have no viable duopoly opportunities either. Aside from Austin, Providence and Springfield look good in contrast to the second group and Providence looks good compared to much of the first. They aren't in the duopolies-or-bust business Nexstar is.

The marketplace has determined that WLWC is of more worth to a spectrum speculator than to a seasoned station operator. The CW28 sold for more than three times what the ABC affiliate in the market went for just a couple of years ago. There's no saying, by the say, that Sinclair won't flip stations from their recent group purchases that don't work for them. As for Sinclair's other singletons, most if not all of them are Big 4 affiliates or are in much larger, more lucrative markets than Rhode Island.

 

[mescutia]

I seriously doubt Ansin would be remotely interested in small market TV; he's all about major market razzle-dazzle.

And the major market opportunities left are about zilch. When he dies, Sunbeam dies since there just isn't enough of the growth that they'd desire. Maybe more gossip columns need to pick what stations they want to buy.

I doubt Gannett would sell WCSH/WLBZ, which is solidly profitable and has a dominant news franchise.

It's also an outlier and Gannett (less a Hearst merger) really has nowhere else to grow in the New England. What good can be made in a medium/small market combo?

Connecting the dots here, Gannett could always buy WHDH/WLVI once they're up for sale.

 

[tvradiogeek]

I seriously doubt Ansin would be remotely interested in small market TV; he's all about major market razzle-dazzle.

And the major market opportunities left are about zilch. When he dies, Sunbeam dies since there just isn't enough of the growth that they'd desire. Maybe more gossip columns need to pick what stations they want to buy.

I doubt Gannett would sell WCSH/WLBZ, which is solidly profitable and has a dominant news franchise.

It's also an outlier and Gannett (less a Hearst merger) really has nowhere else to grow in the New England. What good can be made in a medium/small market combo?

Connecting the dots here, Gannett could always buy WHDH/WLVI once they're up for sale.

I'm hoping someday wlvi is put up for sale and brought back to independent status and back to its roots!!

 

[newsbot]

What, you wouldn't want WLVI to be "Living 56" again?
http://www.youtube.com/watch?v=KY-_lH5RCZ4

 

[jdb820]

What more does Ansin desire? If he dies, sure, the stations could go on the block. But that doesn't mean he's interested in a medium/small market combo.

Seemingly none as he got now-WSVN for cheap 50 years ago, bought WHDH for cheap because it was his childhood home, and bought WLVI because the Track Gals possessed him to. If he wanted a large group, he would have pursued it already.

It may be an outlier, but it's an outlier that Gannett actively pursued and not as part of a larger group buy. They seem quite happy with the results they're achieving and they keep investing in news and technology and continue to import management from their larger-market stations to oversee it.

You make a good point. However, if consolidation grows and there are no other opportunities in New England, do you stand pat or no?

Unless Hearst sees WMTW as a farm team for nurturing talent and management, it's hard to see what they're getting out of it apart from a lot of headaches. There's a financial cost and a cost in corporate management distraction keeping an underperformer like Channel 8 going.

Regional synergies? Haven't they consolidated some operations with WCVB/WMUR/WPTZ-WNNE? I'm always amazed why they bought it in the first place and why Hearst didn't pursue WVII, WGGB, and (twice) WLNE.

The JSA/SSA tied into that deal would seem to preclude the partnerships that have been undertaken in recent years in markets of similar size, such as Albany, NY. I imagine the new owners will have the same problems New Age Media has had making two bottom-tier stations turn a profit.

The ghost of Pegasus strikes again. In hindsight, having WPXT drop Fox for a short-term infusion of infusion cash from The WB was one of the most foolish moves in the history of broadcasting.

And yet they stay in Tampa, Minneapolis, Des Moines, St. Louis, Madison, Lexington, Norfolk, Richmond, and Tallahassee (I might be missing a few) where they have no duopoly opportunities. And they've acquired or are acquiring a bunch of markets (Austin, Kalamazoo, Chattanooga, Medford OR, Steubenville, McAllen, Toledo, Hannibal MO, Columbia MO, Kirksville MO, Marquette, Albany GA) which have no viable duopoly opportunities either. Aside from Austin, Providence and Springfield look good in contrast to the second group and Providence looks good compared to much of the first. They aren't in the duopolies-or-bust business Nexstar is.

The marketplace has determined that WLWC is of more worth to a spectrum speculator than to a seasoned station operator. The CW28 sold for more than three times what the ABC affiliate in the market went for just a couple of years ago. There's no saying, by the say, that Sinclair won't flip stations from their recent group purchases that don't work for them. As for Sinclair's other singletons, most if not all of them are Big 4 affiliates or are in much larger, more lucrative markets than Rhode Island.

WLNE is not a benchmark for station sales given how Global was forced to sell it at a firesale price for 1/3 of what they paid for it. As much as Citadel underpaid for WLNE, it can be argued that OTA overpaid for WLWC even if they'd also make money liquidating program inventory and their CW affiliation.

As for those other markets, I think that eventually they'll spin off anything sub-Top 100. I think this "Chesepeake TV" subsidiary was created so when the inevitable bubble bursts and they have to unload part of their hoard a la Clear Channel with radio they can do it in an quick swoop. There is only so much one can make with the Kirksvilles and Marquette's of the world.

 

[newsbot]

Regional synergies? Haven't they consolidated some operations with WCVB/WMUR/WPTZ-WNNE? I'm always amazed why they bought it in the first place and why Hearst didn't pursue WVII, WGGB, and (twice) WLNE.

Apart from occasional live shots and repurposed video from Hearst's other stations, I don't think there are any synergies to speak of, and the NECN connection is gone. I guess that's why they didn't pursue the other ABC stations in New England.

The ghost of Pegasus strikes again. In hindsight, having WPXT drop Fox for a short-term infusion of infusion cash from The WB was one of the most foolish moves in the history of broadcasting.

I think the $823M Young purchase of KRON and subsequent loss of the NBC affiliation in the Bay Area is the benchmark for all-time bonehead moves in the broadcasting business and will remain so for some time, but certainly the WPXT/FOX situation is the local benchmark. It should have been obvious to Pegasus that the FOX affiliation wouldn't remain vacant for long and that dropping it would come back to haunt them.

 

[jdb820]

The ghost of Pegasus strikes again. In hindsight, having WPXT drop Fox for a short-term infusion of infusion cash from The WB was one of the most foolish moves in the history of broadcasting.

I think the $823M Young purchase of KRON and subsequent loss of the NBC affiliation in the Bay Area is the benchmark for all-time bonehead moves in the broadcasting business and will remain so for some time, but certainly the WPXT/FOX situation is the local benchmark. It should have been obvious to Pegasus that the FOX affiliation wouldn't remain vacant for long and that dropping it would come back to haunt them.

The KRON/Young situation is probably the most boneheaded move in the history of ever though I don't know is more to blame there: Young for bidding way more than they had, NBC for being angry they got overbid, or Chronicle for taking a few million extra as a parting shot.

In terms of New England, WPXT/Fox by far though I'm amazed nobody made a move for WMPX/WPFO sooner so there wasn't that long of an interruption of service. Of course, if this happened today (see the Nexstar/Fox tiffs in Evansville, Springfield MO, and Terre Haute), someone would've just put Fox on their .2 and have called it a day.

Runner up: The Track Gals driving Ed Ansin to spend $120 million on WLVI and the subsequent firing of people right before Christmas. There was no reason Tribune had to leave the Boston market, they had a well-developed stations unlike the ones they sold in Atlanta and Albany leading into it.