By: E&P Staff The New York Times Company announced this afternoon that it plans to sell its Broadcast Media Group, which includes nine network-affiliated television stations and their related properties.
?The decision to explore the sale of our broadcast stations is a result of
our ongoing analysis of our business portfolio,? said Janet L. Robinson,
president and CEO, in a statement. ?These are well-managed and profitable stations that generate substantial cash flows and are located in attractive markets. We believe a divestiture would allow us to sharpen our focus on developing our newspaper and rapidly growing digital businesses, and the synergies between them, thereby increasing the value of our Company for our shareholders.?
The stations are: WHO-TV in Des Moines, Iowa (NBC); KFSM-TV in Ft. Smith, Ark. (CBS); WHNT-TV in Huntsville, Ala. (CBS); WREG-TV in Memphis, Tenn. (CBS); WQAD-TV in Moline, Ill. (ABC); WTKR-TV in Norfolk, Va. (CBS); KFOR-TV in Oklahoma City, Okla. (NBC); KAUT-TV in Oklahoma City, Okla. (MyNetworkTV); and WNEP-TV in Scranton, Penn. (ABC).
"Last year, the Broadcast Media Group accounted for approximately 4% of the Company?s total revenues," the statement read. "In 2006, the Company expects the Group will have revenues of approximately $150 million and operating profit of about $33 million. Depreciation and amortization is expected to be approximately $10 million for the year."
The Times Company has retained Goldman, Sachs & Co. to advise it.
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