KATV sale gets consent of FCC

LR station is part of Sinclair’s deal

The Federal Communication Commission has approved Sinclair Broadcast Group's $985 million deal to buy all TV stations owned by Allbritton Communication, including Little Rock's KATV, Channel 7.

The proposed deal was announced last July but encountered regulatory concerns about overlapping markets.

Approval by the agency Thursday was anticipated after Sinclair made concessions on properties in the overlapping markets.

Sinclair said in a release that it expects the deal to close next Friday.

KATV general manager Mark Rose said he expects a visit from Sinclair soon after. As he has said earlier, Rose stated that he is optimistic about the effects of the deal for the station, which employs about 100. The station typically dominates its 37-county ratings market, Rose has said.

Sinclair shares, which are traded on the Nasdaq market, rose 8 cents Friday to $33.36. It took on debt of $1.05 billion to pay for the deal.

Arlington, Va.-based Allbritton is family owned. After selling its television stations, it will retain Politico, a political news organization.

One of the largest television chains in the nation, Sinclair says on its website that it "owns and operates, programs or provides sales services to 162 television stations in 78 markets, after pending transactions."

Other Allbritton stations involved in the sale include WHTM in Harrisburg, Pa.; WJLA in Washington, D.C.; WBMA/WCFT/WJSU in Birmingham, Ala.; KTUL in Tulsa; WSET in Roanoke, Va.; and WCIV in Charleston, S.C.

To make the deal work, Sinclair agreed to sell WHTM in Harrisburg to Media General.

Additionally, Sinclair agreed to abandon so-called sidecar arrangements it had with two small stations in Birmingham and one in Charleston.

A sidecar arrangement means that the dominant station helps with sales and provides news-gathering services.

The agency said such arrangements "look a lot like ownership," Allbritton general counsel Jerald Fritz said.

Sinclair relinquished to the agency operating licenses for stations WCFT and WJSU in Birmingham, which simulcast and functioned as one station, Fritz said.

It likewise surrendered its license for WCIV in Charleston.

In a related matter, the KATV building at Main and Fourth streets has been proposed as part of the campus of the Little Rock Technology Park.

The initial idea was to raze the building, former home of Worthen Bank, though opposition to that has arisen.

Rose reiterated his earlier statement that decisions on the property will be up to the new owners.

Business on 07/26/2014

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