The main contract for KBTV-TV Port Arthur TX is between television groups Nexstar and Sinclair. But the actual buyer will be Deerfield Media, which will immediately enter in to a JSA/SSA/purchase option with Sinclair.
It should come as no surprise when a deal of this type is announced that Sinclair is already active in the market. It owns KFDM-TV Beaumont, the other half of the Beaumont-Port Arthur DMA.
KFDM carries CBS and also provides CW into the market via digital multistreaming technology; KBTV is the local Fox affiliate and also brings in Bounce TV on a side channel.
The price Sinclair contracted to pay Nexstar is $14M.
In a separate document, it states its intent to sell “station assets” to Deerfield for $1.5M, and also enters into a purchase option with Deerfield to buy it back for that amount.
In the meantime, Sinclair will provide certain services to the station under terms of an SSA. Deerfield will pay an annual fee of $2,113,000 ($176,083.33 per month) for Sinclair’s services. Sinclair will also enter into a JSA with Deerfield under terms of which it will keep 30% of advertising revenues and Deerfield will get 70%.