Sinclair Broadcast Group Inc. announced yesterday that it has agreed to acquire WNYO-TV in Buffalo, N.Y., for $51.5 million in cash - making it the fifth station that Sinclair either owns or programs in that state.
Cockeysville-based Sinclair programs another Buffalo station, WUTV-TV, and has an application pending before the Federal Communications Commission to acquire that station.
WNYO-TV is owned by Grant Television Inc.
"By adding a second station in Buffalo, we will be armed with a stronger local sales force to further build on and expand customer relationships," said Barry Drake, chief executive officer of the Television Division of Sinclair. "We will also have more programming options to offer our viewers, and better breadth of key demographics to offer our advertisers."
The transaction is subject to FCC and Department of Justice approval, which is expected to occur during the third quarter. The Department of Justice reviews any acquisition of more than $15 million.
But even with the two stations in a single market, the combined revenue share is expected to be within the acceptable range - 40 percent and under, company officials said.
The acquisition is strategically important, because it represents one of the last potential duopolies that Sinclair can create in markets where the broadcaster already owns or programs a station, company officials said.
"In today's competitive television environment, it's important to have as many stations in a market as you're allowed to have," said Patrick Talamantes, chief financial officer of Sinclair. "It makes a lot of sense to do so in terms of having more programming for viewers and being able to reach greater breadth and depth of demographics."
Sinclair Broadcast Group Inc. is a diversified company that owns or programs 61 television stations in 40 markets. The company's television group reaches approximately 25 percent of U.S. television households and includes ABC, CBS, FOX, NBC, WB and UPN affiliates.
Through its wholly owned subsidiary, Sinclair Ventures Inc., Sinclair has equity interests in Internet-related companies, including NETfanatics Inc., BeautyBuys.com Inc. and Synergy Brands Inc.
Other strategic investments of Sinclair Broadcast Group include Acrodyne Communications Inc., a leading manufacturer of transmitters and other television broadcast equipment.
Sinclair's stock rose .75 cents to close at $12.31.
