Sinclair Broadcast to Acquire Barrington TV Stations; Shares Surge (SBGI)
3/1/2013 12:19:19 PM
Shares of Sinclair Broadcast Group Inc. (NASDAQ: SBGI) have surged in trading today after the company announced that it will acquire the broadcast assets of 18 television stations owned by Barrington Broadcasting Group LLC.
- Sinclair Broadcast signed agreement to acquire broadcast assets of 18 television stations
- The company also entered into agreements to operate or provide sales services to an additional six stations
- The television stations reach 3.4% of the U.S. TV households
David Smith, President and CEO of Sinclair Broadcast, said that this week, the company launched its small market television group when it announced it would be acquiring certain of the COX Media Television stations. Smith said that the Barrington stations are an important part of that strategy and will provide a meaningful scale to the group.
Under the terms of the agreement, Sinclair Broadcast will acquire the broadcast assets of 18 Barrington television stations for $370 million. The transaction requires the approval of Federal Communications Commission (FCC), as well as antitrust clearance.
Sinclair Broadcast also announced that Steve Pruett will join the company as Chief Operating Officer (COO) of Chesapeake TV. Pruett, who has significant media experience, was most recently the CEO of Communications Corporation of America’s 25 television station group. As COO of Chesapeake TV, he will oversee growth and development of SBGI’s small market strategy.
Pruett noted that Chesapeake TV represents a tremendous opportunity to build scale and efficiency to strengthen competitive positioning in small markets by applying SBGI’s resources, discipline and management systems.
SBGI shares rose to a 52-week high of $15.97 in trading today. At last check, the stock was trading 11.01% higher at $15.63 on above average volume of 1.23 million.
About Sinclair Broadcast Group Inc.
Sinclair Broadcast Group Inc. is a Hunt Valley, Maryland-based diversified television broadcasting company.