CNBC reports, Sinclair is looking to sell more than 30% of its 185 owned or operated broadcast stations, according to people familiar with the matter.
The media company has hired Moelis as an investment bank to assess possible asset sales, including the stations and the Tennis Channel, the people said.
…Last year, Sinclair rebranded and restructured, separating the company into two operating units, the broadcast business and Sinclair Ventures, which includes non-media holdings.
Sinclair will divest 30% or more of their TV stations
I see it more from an economic perspective. The uncertainties of the future of the broadcast industry, especially in terms of where people get their news, combined with under performing stations, makes it more important to focus an the most profitable markets with the largest reach. The advertising market is changing quicker than ever with ad dollars having many more choices. Ad dollars can now, especially with analytics, be targeted to specific consumers to lower target acquisition cost. This is especially true with YouTube, podcasts and social media platforms. The younger the demographic the larger the chance they get their news, info, and entertainment from a smart phone. The coveted 25-54 demo is shifting and many suggest the old traditional demos are flattening a bit. Station operators I believe recognize that and will make decisions accordingly (and change courses quicker).
At the end of the day it is about money
I don’t understand Sinclair’s strategy. Based on what I’ve read on this, it seems like Sinclair is putting the “For Sale” sign out on all their affiliates, and are willing to sell any of them if the price is right. Given the political bent of the region, I would not be shocked if KOMO and KATU are among the stations that are sold off.
A few years ago, it seemed like Sinclair was buying up broadcast stations to push their in-house content nationwide, sort of like what Nexstar was trying to do (and ultimately did with the CW acquisition). Now they seem to be backing off of that. So what is their plan? Push online content? Acquire a cable network like Newsmax or OAN and use that as the delivery mechanism? What exactly is the mission of Sinclair now?
Unlike the KIRO/KSTW affiliation change that I think makes a ton of sense for CBS, I don’t see Disney/ABC wanting to acquire KOMO. Disney has been pouring money into their streaming operation and there were rumors late last year that they were trying to sell off their O&O stations to Nexstar. ABC’s content, especially on the live sports side, is a shell of its former self with ESPN taking anything that’s remotely compelling aside from the occasional college football game. The NBA isn’t exactly a huge money maker in Seattle post-Sonics.
I hope that KOMO would be one of the stations that is sold.
Sinclair will sell off the least productive 60 stations, I’m guessing. I would hope none of those fall in the Top 20 markets.
Don’t know which company might want to buy any SInclair stations, but if Scripps bought KOMO in Seattle,and KATU in Portland along with KIMA in Yakima, they could up their live sports inventory if the Sonics come back + Blazers. A regional approach? Scripps has become very aggressive on the live sports front, including ION. BTW, the company has no PNW presence, so maybe some new territory for them. Just musing.