No grass is growing under the feet of the Sinclair M&A team – its latest deal will bring in 20 television stations, relationships with three others, and a quartet of Seattle WA radio stations in a deal that is being termed a merger rather than a straight acquisition.
The value of the deal is $373M. Fisher shareholders are to receive $41 per share of Fisher common stock, a 44% premium over its 1/9/13 closing price. That was the point in time when Fisher announced it was exploring its alternatives.
“We are excited to acquire Fisher and expand our coverage westward, especially in the two key markets of Seattle (DMA 12) and Portland (DMA 22),” commented David Smith, President and CEO of Sinclair. “Started in 1910, Fisher’s history of operating television and radio stations in the northwest corner of the U.S. has played an important role in its communities and in producing high-quality local news. We look forward to expanding upon those traditions and improving the cash flow of the stations through the benefits that come with our scale.”
“After conducting our review of potential strategic alternatives, the Board concluded this all-cash transaction was the best path to maximizing value for shareholders,” said Paul A. Bible, Chairman of Fisher’s Board of Directors.
“Sinclair is the largest independent TV broadcaster in the country, and we believe its commitment to the industry — along with its greater scale and sizable resources — will provide our stations, team members and business partners with new opportunities to flourish,” said Colleen B. Brown, Fisher’s President and CEO.
Sinclair expects it will have no trouble financing the deal and will likely close during the third quarter.
Here’s what Sinclair is adding:
Seattle-Tacoma, WA Nielsen DMA #12
KOMO ABC/This TV
KUNS Univision/Mundo Fox
Portland, OR Nielsen DMA #22
KATU ABC/Me TV
KUNP Univision/Mundo Fox
Spokane, WA Nielsen DMA #73
Boise, ID Nielsen DMA #111
Eugene, OR Nielsen DMA #121
KVAL CBS/This TV
*KMTR3 NBC/CW (pending regulatory approval of service agreements)
*KMCB3 NBC (pending regulatory approval of service agreements)
*KTCW3 NBC (pending regulatory approval of service agreements)
Yakima-Pasco-Richland-Kennewick, WA Nielsen DMA #123
Bakersfield, CA Nielsen DMA #126
KBFX FOX/This TV
Idaho Falls-Pocatello, ID Nielsen DMA #160
Seattle-Tacoma, WA Arbitron market #13
KOMO-AM, 1000 kHz, News
KOMO-FM, 97.7 MHz, News
KPLZ-FM, 101.5 MHz, CHR
KVI-AM, 570 kHz, Talk