Thursday, January 10, 2008

KRON 4 for sale; Fox, NBC likely bidders

Young Broadcasting announced at noon today that it has hired advisors to help it put KRON 4 up for sale. Here's the press release. Edward Atorino, a media analyst with Benchmark Co., told the Merc that KRON will draw multiple offers. "TV stations in the Bay Area are like beach front property," said Atorino.

NBC, which wanted to buy KRON when it was for sale in 2000, might make another run at it, now that its value is diminished. Young bought the station for $823 million, a price based largely on the station's NBC affiliation, which it lost a year later. NBC then bought KNTV Channel 11. FCC rules will allow NBC to buy a second station in the market if it is not one of the four top rated stations, which it is not.

"NBC could buy it and make the San Francisco station the affiliate. Or maybe they would want both stations to be affiliates," James Goss, an analyst with Barrington Research, told the Merc.

Fox, owned by Rupert Murdoch's News Corp., does not own a San Francisco station and might also be interested in KRON. Channel 2's Fox affiliation contract expires in a couple of years.

"Generally, networks like to own their affiliates, especially affiliates in the largest markets," Goss said. KTVU still has a network affiliation with Fox whose term won't expire for a few years.

Young hopes to have a deal to sell Channel 4 by the end of the first quarter.

[Chron story] [Broadcasting & Cable: Young reports 'high level of interest' in KRON] [MarketWatch]

4 comments:

Mr. UHF said...

KRON's value, which fell by hundreds of millions when it lost NBC, will fall further in February 2009 when TV goes all digital. Digital will level the playing field between UHF and VHF, not that cable didn't do that already. So Channel 4 will have the same signal strength as, say, Channel 20 or 48. If Fox wants an SF station, it can easily buy TV20 and reach the same number of people as Channels 2 or 4. Or, Fox has enough leverage to buy Channel 2 from Cox as at sweet price. So I don't expect NBC or Fox to offer much for Channel 4. They'll put in lowball bids, seeing it as a distress sale for Young, which is on the verge of bankruptcy. Another possible bidder is ABC, which is the only network station in town without a duopoly. And don't count out MediaNews. Dean Singleton has always wanted to own TV stations.

Anonymous said...

about time! Kron will be set free from Young Broadcasting but i'm still concern about its future.
NBC can now afford Kron since it might be sold for $50 million and they can have 2 stations: 1 sf-north bay-east bay news bureau and 1 southbay news bureau.

Anonymous said...

Will the Fox Television Stations Group buy both KTVU and KICU-TV?

My suggestion is first: KTVU will remain a Fox Network Affiliate unless the Fox Television Stations Group would have a very tight possibilty to first become FOX's newest owned-and-operated TV station, and so would KICU-TV may also become FOX's newest owned-and-operated TV station unless it may become a brand new affiliate with MyNetwork TV in the San Francisco Bay Area. I wonder when's going to happen between now and February 17th, 2009?

Anonymous said...

Will the Fox Television Stations Group buy both KTVU and KICU-TV?

My suggestion is first: KTVU will remain a Fox Network Affiliate unless the Fox Television Stations Group would have a very tight possibilty to first become FOX's newest owned-and-operated TV station, and so would KICU-TV may also become FOX's newest owned-and-operated TV station unless it may become a brand new affiliate with MyNetwork TV in the San Francisco Bay Area. I wonder when's going to happen between now and February 17th, 2009?