Tribune Co. to acquire 19 TV stations in billion-dollar deal

Mon, 01 Jul 2013 20:00:00 +0000

CHICAGO (AP) -- Tribune Co. said Monday that it reached a deal to buy Local TV Holdings LLC's 19 TV stations for $2.73 billion in cash, significantly boosting its television business as it looks to sell its newspaper operations.

Tribune currently owns 23 TV stations and cable network WGN America, along with the Chicago Tribune, Los Angeles Times and other newspapers. It says the deal will make it the country's largest commercial TV station owner with 42 stations.

Tribune Co. said it expects the deal to boost its profits immediately and result in more than $100 million in annual cost savings within five years. Local TV's holdings include stations in Denver, Cleveland, St. Louis and other major cities.

Meanwhile, the Chicago company said the increased scale will help it maximize its national and local advertising sales, while also giving it a larger footprint to distribute its video and digital content.

"This is a transformational acquisition for Tribune - it makes us the No. 1 local TV affiliate group in America, expands the distribution platform for our high-quality video content, and extends the reach of our digital products to new audiences across the country," Tribune Co. President and CEO Peter Liguori said in a statement.

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Tribune Co. to acquire 19 TV stations in billion-dollar deal