10.06.2009 01:00 PM
LIN TV Acquires Online Ad Company for $7.9 Million
PROVIDENCE, R.I.: LIN TV has acquired Red McCombs Media, an online advertising and media
services outfit in Austin, Texas, for a reported $7.9 million. LIN (NYSE: TVL)
owns NBC affiliate KXAN-TV and the CW, KNVA-TV, in Austin. The Austin Business Journal said the deal
includes $1.2 million cash, $4.5 million in Class A shares of TVL and around
$2.2 million in an unsecured promissory note.
Red McCombs sifts through demographic and behavioral consumer data to
specifically target advertising and publishing to matching audiences. The Journal said it’s been listed as one of
its fastest growing companies in Central Texas, and made Inc.’s list of the
5,000 fastest growing private firms. The company was started five years ago by
Jon Flatt who later joined forces with Red McCombs.
“RM Media advances LIN’s transformation from a local broadcaster to a digital
media company with a national footprint,” said Vincent Sadusky, LIN president
and CEO. “RM Media was founded by innovative and entrepreneurial leaders who
have a clear understanding of new media engagement and a first-to-market
LIN owns and/or operates 27 network-affiliated TV stations in 17 markets and
more than 50 interactive TV and niche Web sites and mobile marketing platforms.
August 10, 2009: “LIN TV
Launched on BlackBerry Devices”
LIN TV Corp extended its mobile TV offering to BlackBerry devices. LIN
(NYSE: LIN) said it leveraged technology from News Over Wireless to develop
custom BlackBerry smartphone applications for each of its 27 local TV stations.
August 6, 2009: “LIN TV Cuts
Loss on Impairment”
LIN TV stations are feeling the effects of the economy and the absence of
national elections as much as other stations across the country. LIN’s 27
stations generated $82.5 million during the second quarter, down 20 percent
from $103.7 million a year ago. Net loss was $25.5 million, compared to nearly
$216 million last year, which included a goodwill impairment of nearly $297
million on broadcast licenses. A goodwill impairment of nearly $39.9 million
was taken during the most recent quarter.
April 30, 2009: “LIN TV Getting Into
LIN TV will use the NOW technology to develop custom iPhone applications for
each of its 27 local TV stations. The LIN iPhone app will have local news,
sports and entertainment, video, weather forecasts and traffic reports. NOW is
also designing the iPhone applications for LIN TV to include national and local
advertising, providing new revenue stream opportunities.
April 14, 2009: “LIN TV, Belo Risk
Breaching Loan Terms” LIN TV and Belo are at risk for breaching loan
agreements, Bloomberg reported. Neil Begley of Moody’s told the news
service that the broadcasters could fall out of covenant if earnings-to-debt
ratios fall below the minimum required in their credit agreements. Executives
at both TV groups said the expected to stay in compliance; LIN seeking amended
terms if necessary, and Belo hoping it won’t be.
April 1, 2009: “LIN Posts $830 Million
Loss on $1 Billion Charge”
LIN TV posted 2008 results in March that included one of the heftiest
impairment charges by a TV group up to that point. LIN wrote down more than $1
billion for the year and took an additional restructuring charge of nearly $13