A deal for KDBC-TV El Paso TX ultimately involves not two but four companies, and it would appear that more change is in store. The seed contract spells the transfer of the station from TTBG to Sinclair.
In addition to Titan and Sinclair, Cunningham and Communications Corporation of America are implicated in this deal.
The basic contract is a 315 stock transfer, sending the CBS/MNT affiliate to Sinclair Television Group, but another contract assigns the ultimate right to buy the station to Cunningham Broadcasting Corporation, headed by Michael Anderson.
The price is $21M cash. Sinclair will have an option to purchase it from Cunningham for the same price. The deal includes two existing low power outlets serving Alamargordo and Las Cruces NM, and a CP for a third.
KDSM is currently operating under the auspices of NBC/Estrella KTSM-TV, which is owned by Communications Corporation of America.
RBR-TVBR observation: The reason for this deal being structured as it is was contained in our own RBR-TVBR archives. Sinclair acquired KFOX-TV El Paso in its $99M group acquisition from Cox back at near the end of February. Thanks to Mr. Larry Patrick for jogging our less-than-photographic memory.
Since CCA is now going to Nexstar, we figure it will eventually cease providing services to KDBC. How and when may depend on how the LMA contract is written.
Didn’t Sinclair just buy the FOX station in El Paso from Cox? Taht may be why Cunningham is involved. Also, there were stories recently that Nexstar was buying CCA. There is a twist to your analysis.
Larry,
Great catch …on your game as usual!!
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