PROVIDENCE, R.I.– LIN TV Corp. (“LIN Media”; NYSE: TVL), a local multimedia company, announced that its wholly-owned subsidiary LIN Television Corporation (“LIN Television” or “the Company”) entered into a definitive agreement to purchase certain broadcast and other related assets for 13 network affiliates (including 10 that are affiliated with ABC, CBS, FOX or NBC) owned by New Vision Television in eight U.S. markets for $330.4 million and the assumption of $12 million of debt. The Company also agreed to provide certain services to five separately owned network affiliates (including three that are affiliated with ABC or FOX) currently served by New Vision Television pursuant to sharing arrangements with a third-party licensee upon the closing of the transaction. The Company expects to close on the acquisition in late 2012, pending regulatory approvals and other closing conditions.
Commenting on the announcement, the Company’s President and Chief Executive Officer Vincent L. Sadusky said: “We have been evaluating the M&A landscape for quite some time and selectively pursued New Vision Television as it adds geographical diversity, particularly in the South and Western U.S. New Vision Television has a reputation for operating high-quality, well-run media properties. This is a terrific opportunity to strengthen our mid-size market station portfolio in an accretive manner and will provide new markets to expand our digital businesses.”
“The deal is structured and financed in a way that preserves our financial flexibility and allows us to capitalize on significant synergies, as well as leverage our technical capabilities, corporate infrastructure and interactive growth platforms to benefit both our viewers and advertisers,” added Sadusky.
The New Vision Television network affiliates are located in the following markets: Portland, OR (DMA 22); Birmingham, AL (DMA 39); Wichita, KS (DMA 67); Honolulu, HI (DMA 71); Savannah, GA (DMA 92); Youngstown, OH (DMA 110); Topeka, KS (DMA 136); and Mason City, IA (DMA 153).
LIN Television currently reaches 7.3% of U.S. television households and is affiliated with all major networks. Pro forma for the New Vision Television transaction, the Company will operate or service 50 network affiliates in 23 markets, reaching 10.6% of U.S. television households
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