Thursday, June 4, 2009
Hearst takes TV stations private
Chronicle owner Hearst Corp. is taking its 29 TV stations private. The stations include Sacramento NBC affiliate KCRA Channel 3. The company announced it has bought 96 percent of the stock of Hearst-Argyle Inc., which owned the 29 stations. Hearst already owned 67 percent of Hearst-Argyle and offered the remaining shareholders $4.50 per share, and they agreed to take the offer. Two years earlier, Hearst offered $23.50 per share, but that proposal was rejected by shareholders who wanted more. In fact, one investor group sued over the $23.50 price. Obviously the advertising market, and the value of TV stations, has changed in the past two years.