LIN Media will be in the driver’s seat in a set of shared services agreements with ACME Communications in Albuquerque-Santa Fe, Dayton OH, and Green Bay-Appleton WI, and the latter two markets will be the scene of joint sales agreements as well.
According to the pact, LIN will provide technical, engineering, promotional, administrative and other services in all of the DMAs, and advertising sales in Dayton and Green Bay.
LIN’s Albuquerque stations include CBS KRQE and Fox KASA; they’ll be providing services for ACME’s CW KWBQ and MNT KASY.
In Dayton, LIN’s NBC WDTN will be working with ACME’s CW WBDT.
In Green Bay-Appleton, LIN’s Fox WLUK will be assisting ACME’s CW WIWB.
ACME plans to adopt this model in other markets. Its President/COO Doug Gealy said, “This transaction reflects our commitment to maximizing the value of our stations to the benefit of our shareholders. This alliance will allow us to substantially reduce our operating costs and potentially extract new revenues while strengthening our ability to serve our audiences in each of these markets. We see this transaction as a model for our other two stations in Knoxville and Madison and intend to pursue separate but similar opportunities in those markets.”
LIN Media President/CEO Vincent L. Sadusky added, “This arrangement leverages LIN Media’s core strengths in operating leading local multimedia platforms and allows both parties to enjoy the benefits of greater economies of scale.”
The arrangement is penciled in to begin 7/1/10 or thereabouts and will have a term of three years.
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