Friday, August 15, 2008

KRON's owner says sales talks continue

Vince Young (pictured), chief executive of Young Broadcasting, told analysts yesterday that the "auction" of KRON-TV is ongoing. Young said Moelis & Co., the Los Angeles broker Young tapped in January to conduct the sale, “was engaged with several parties,” but the company was not willing to give out more information. Young said later, “It’s a tricky environment for doing an M&A [merger-and-acquisition] deal. The amount of buyers and sellers in the marketplace are not what they were a year ago.” (Here's a link to a Webcast of the earnings conference call.)

Young reported second-quarter net revenue of $37 million, down 6.7 percent from the same quarter a year ago.

Vince Young said his company has written down the value of KRON by $139 million, from $366 million to $227 million.

Young Broadcasting's financial statement for the quarter separated KRON from the company's other stations in the Midwest. The figures show KRON had revenues of $12.3 million in the second quarter and expenses of $13.1.

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