KGMB TV: Sale May Be Near

[mel]

This will be the new thread in the ongoing saga of the sale of KGMB TV, Hawaii's CBS affiliate.

KGMB TV To Be Sold Within a Year

From Erika Engle's story today:

KGMB-TV's owner is "deep into discussions" about the possible sale of the Honolulu station and a sister station in New Orleans, according to Jeff Smulyan, chairman and chief executive of Indiana-based Emmis Communications Corp.

Persistent talk on the street centers on Virginia-based Gannett Co. Inc. as a potential buyer of KGMB, despite a federal ban on newspaper-television cross ownership. Mike Fisch, president and publisher of the Honolulu Advertiser, owned by Gannett, referred inquiries to the company's Virginia headquarters, where officials were not available.

[Media Amigo]

Re: KGMB TV: Sale May Be Near

I listened to the Emmis shareholders call...my opinion is it's all "spin." There's nothing imminent. That the Blackstone Group is in disccusions with several potential buyers is nothing new. In July it was reported that Emmis was in final discussions for WVUE. Those are some long final discussions aren't they?

In listening to the call Smulyan said, "a deal is never done until all the contracts and everything have been signed."
He was responding to a question from a shareholder asking if they can continue to keep listing the last remaining tv stations as discontinued operations on the balance sheet. ie. not making any money for the company. He can't say no we can't.

Also, Erica, your story in whole, was included in the online edition of TV Spy.

[Media Amigo]

Re: KGMB TV: Sale May Be Near

Here's a portion of the transcript from the Emmis Communications F2Q07 (Qtr End 8/31/06) Earnings Call:


Lee Westerfield, Harris Nesbitt

Thank you gentlemen, good morning. Three questions; the first one, Jeff if you can go into a little more detail about the developments at MS Interactive such as the iTunes relationship and also how MS Interactive may differ from some other more typical radio groups, online initiatives. Secondly, if you can update us with regard to the remaining television assets, where you stand in terms of the efforts to market these properties and given the lapse in time can they remain discontinued ops from an accounting standpoint? I’ll just keep it at those two questions, thank you.

Jeff Smulyan, CEO and Chairman

Let me talk about TV first. We are deep into discussions with several buyers in each market. Deals are never done till they’re done. We think we’re fairly far along with two and three people in New Orleans and Hawaii, so I feel very comfortable. I also should say that maybe what’s made us a little bit more bullish is there’s been a remarkable performance in both Hawaii led by Rich Blangiardi and his staff and New Orleans, Vanessa Oubre and her staff, they have just done an incredible job. New Orleans billing will actually exceed the calendar year before Katrina. It’s just been one of the great turn around stories of all time and it’s probably made us a little bit more bullish about our prospects. And in Hawaii I’m sure we’re having our best year ever at KGMB. So while we’re in discussions nothing is ever done until the contract is signed and the deal closes. So, we feel in the near term those transactions will both be done.