Anatomy of an Albuquerque ACME acquisition


DealLIN Television is buying assets of ACME Television along with a partner, creating a cluster of four full power stations in-market along with a satellite in Roswell NM. Here’s how it all shakes out.

To recap, ACME is ultimately sending MNT KASY Albuquerque, CW KWBQ Santa Fe and KWBQ satellite KRWB Roswell to KASY-TV, a subsidiary of John S. Viall Jr.’s Tamer Media LLC.

LIN’s stations in the DMA include CBS KRQE Albuquerque and Fox KASA Santa Fe.

The main contract, however, lists LIN Television as the buyer, and carries a price tag of $17,325,000 cash.

In a second document, LIN assigned its right to purchase certain assets of the stations to Tamer. The cost of those certain assets will be $1,732,500. In other words, LIN is footing 90% of the cost of the stations, and Tamer is footing 10%.

A shared services agreement and purchase option between LIN and ACME has been in place pursuant to a 5/28/10 contract. This deal constitutes the exercise of the option.

A new SSA between LIN and Tamer is included in the new deal. Under its terms, Tamer will pay a base monthly fee of $350K to LIN. There is no JSA included in the collection of documents filed with the FCC.

LIN also has the right to purchase the stations from Tamer should local ownership caps ever change to the extent necessary to make such a purchase possible.