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CBS and Media General Sign Deal to Renew All Affiliation Agreements - TvTechnology

CBS and Media General Sign Deal to Renew All Affiliation Agreements

Analysts bless the deal
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NEW YORK — CBS and Media General announced a comprehensive deal that renews all of Media General’s existing station affiliation agreements.

The agreement includes renewals for the following Media General affiliates: WRBL in Columbus, Ga.; WBTW in Florence, S.C.; WNCT in Greenville, N.C.; WHLT in Hattiesburg, Miss.; WJTV in Jackson, Miss.; WJHL-TV in Johnson City, Tenn.; KLFY in Lafayette, La.; WLNS-TV in Lansing, Mich.; WKRG-TV in Mobile, Ala.; KELO in Sioux Falls, S.D. (including its satellites KDLO in Florence, S.D. and KPLO in Reliance, S.D.); KCLO in Rapid City, S.D.; and WSPA-TV in Spartanburg, S.C.

Marci Ryvicker of Wells Fargo noted that Media General’s affiliation agreements are set to expire Jan. 1, 2015.

“While there was no color on terms, rate, or length of the agreement, we think it still expires Jan. 1, 2014, and probably goes out for five years, given recent CBS renewals with other station groups, and we currently estimate a rate of roughly $0.75, which we think translates to a 40/60 split,” she said.

Wells Fargo analysts view the deal as a positive, she said.

“A long-term agreement means that Media General should be able to reprice its subs via retransmission consent at least once more before this new CBS agreement expires,” Ryvicker’s investor note said. “This announcement should eliminate investor concerns related to additional ‘lost affiliations’ for Media General/LIN.”