Meredith Corporation has agreed to purchase Gannett Co. television stations in Phoenix and in St. Louis for $407.5 million in cash, the companies announced.
The stations were part of Gannett’s previously announced acquisition of Belo Corp. The stations include independent station KTVK and CW affiliate KASW, both in Phoenix, the nation’s 12th-largest TV market, as well as CBS affiliate KMOV in St. Louis, the nation’s 21st-largest television market.
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“These are high performing stations and will add to our already strong cash flow. We will increase our presence in the large and growing Phoenix market, where we own KPHO, the CBS affiliate. KMOV (CBS) in St. Louis adds another Top 25 market to our portfolio, and when combined with KCTV (CBS) in Kansas City, gives us powerful local brands in two of the Midwest’s top news and sports markets,” said Meredith Chairman and CEO Stephen M. Lacy in a statement.
In the first year after the closing, the stations are expected to generate combined revenues of $105 to $115 million, Meredith said.
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The license and related assets of KASW will be purchased by a third party – SagamoreHill of Phoenix, LLC – and Meredith will provide some services for KASW’ operation under a customary services agreement with SagamoreHill to meet Federal Communications Commission local television ownership rules.
The transactions are expected to close during the first half of 2014, subject to regulatory approvals.