OTA Sells KMIR, KPSE in Palm Springs for $21 Million
Entravision to add stations to its roster
July 21, 2017
SANTA MONICA, CALIF. —
OTA Broadcasting, the entity co-created by computer magnate Michael
Dell—ostensibly to buy TV stations and sell them at auction—is selling two
stations in Palm Springs, Calif., to Entravision Communications Corp., the
latter announced today.
Entravision said entered into an agreement with
OTA Broadcasting to acquire KMIR-TV, the NBC affiliate, and KPSE-LD, the
MyNetworkTV affiliate, serving Palm Springs for $21 million.
Entravision is funding
the purchase with auction proceeds. Entravision sold four TV stations at auction, according to FCC’s April 4, 2017, winning bid list. WVUN in Hartford, Conn.; KSMS in Monterey, Calif.; WJAL and WMDO-CD in Washington, D.C., were sold for a total of $ 263,592,981. Entravision indicated it had channel-sharing agreements for each of those stations.
It will treat the transaction as a “like-kind exchange” with
regard to IRS rules. It estimated the purchase price to be less than 6.5 times
expected 2016-17 pro forma cash flow, and expects it to be “immediately free
Pending customary closing
conditions, including Federal Communications Commission consent, the deal is
expected to close in the fourth quarter of 2017.
Walter F. Ulloa, chairman and CEO of
Entravision, said, “Palm Springs is a growing and vibrant market that
we know very well and have served for more than 20 years. Our existing
television and radio assets located in the market have helped us build strong
relationships with the Palm Springs community and our local news programming, Noticias
Ya, is highly rated.
“We are excited to add KMIR’s
impactful and significant local news presence to our portfolio in Palm Springs.
This is a strategic transaction that is extremely attractive on a financial
basis, allowing us to broaden the services we provide the Palm Springs market
and positions us to continue to build on the success of KMIR and
Bill Tolpegin, CEO of OTA Broadcasting, said,
“We are grateful for the hard work and dedication of KMIR’s
terrific employees during our ownership of the station. We are confident that
Entravision will be a great new home for the station and its team, and look
forward to following their continued success.”
OTA Broadcasting sold 10 stations in the incentive auction, including eight low-power TV licenses. The stations are in Boston, Charlotte, N.C., New York, Pittsburgh, Providence, R.I.; and San Francisco. OTA made $441 million on the sales and indicated each of the sold stations had channel-sharing agreements. OTA also asked the FCC if it could engage in aftermarket sales to wireless providers once the auction was completed. The commission did not respond.
Entravision currently owns and operates the
UniMas and Univision affiliated television stations—KVER-CD, KEVC-CD, and
KVES-LD—and 94.7 FM Jose and 103.5 FM Tricolor radio stations—KLOB-FM and
KPST-FM—serving the Palm Springs market, which is ranked No. 146 in total
population and No. 49 in Hispanic population. Entravision said its Univision
affiliate, KVER-TV is the leading station in the market, number one in full
week ratings, Mon-Sun 3am-3am among Adults 18-34, 18-49 and 25-54, according to
Nielsen numbers from May 2017.