Sinclair Broadcast Group Inc. will sell WTTV(TV) Indianapolis and satellite
station WTTK(TV) in Kokomo, Ind., to Tribune Co. for $125 million.
Tribune already owns WXIN(TV) Indianapolis.
The deal, if approved by the Federal Communications Commission,
will give Tribune Broadcasting 24 stations with a combined reach of 38.4 percent
of U.S. television households and nearly 29 percent with
FCC discounts for UHF stations.
Latest Videos FromBroadcasting+Cable
Sinclair president and CEO David Smith said, 'Since we were not able to create a duopoly in the
Indianapolis/Bloomington market, it made more sense at this time to exit.'
Sinclair said the $125 million price represented 38 times WTTV's
2001 cash flow and an estimated 21-times multiple of the broadcast cash flow
anticipated in 2002, before duopoly benefits.
Tribune added that the price 'represents a multiple
of 11 [times] pro forma 2002 EBITDA [earnings before interest, taxes, debt
and amortization], including duopoly savings.'
Tribune estimated $5 million in savings within the first
year in reduced programming costs and staff reductions.
