Tribune Pays $2.7 Billion to Acquire Local TV

CHICAGO/NEWPORT: Tribune Company has closed an agreement with Local TV to acquire all 19 of its TV stations in 16 U.S. markets, for a total of $2.725 billion in cash.

Combined with its current 23 stations, the transaction makes Tribune the country’s largest commercial TV station owner, with a total of 42 stations from New York to Los Angeles to Miami to Seattle. Most of Local TV’s stations are ranked number one or two in revenue share in their markets, therefore the move is expected to generate significant free cash flow for Tribune’s earnings. It also extends the distribution platform for original content generated by Tribune Studios and digital offers to be created by Tribune Digital Ventures into new growing markets. 

Local TV is principally owned by Oak Hill Capital Partners.

"Since joining Tribune in early 2013, we have been setting the strategic foundation to transform Tribune and help chart the path forward—building our multimedia capabilities and asset portfolio to become the country’s leading independent content creator and distributor," said Peter Liguori, Tribune’s president and CEO. "This is a transformational acquisition for Tribune—it makes us the #1 local TV affiliate group in America, expands the distribution platform for our high-quality video content, and extends the reach of our digital products to new audiences across the country. We couldn’t be more excited about Tribune’s future as America’s leader in creating and distributing original content and local news programming."

Bobby Lawrence, the CEO of Local TV, added, "Local TV and Tribune have had a long, successful relationship over the last five years. Our cultures and operating philosophies are very similar, and we share a strong commitment to news and local programming excellence. My management team will dearly miss working with some of the most talented and dedicated people in broadcasting, but we know we leave our employees in good hands. I am grateful to our partners at Oak Hill Capital, who acquired the finest stations in the industry and helped us build this great company."

Jonathan Friesel and Benjamin Diesbach, partners at Oak Hill Capital, jointly said, "We thank Bobby, President and COO Pam Taylor, and the entire Local TV family for their outstanding dedication and performance. During our partnership together, Local TV has delivered extraordinary growth and become a world-class broadcaster known for its quality programming, technological innovation and strong community service. We wish Tribune well as they build on the history of success these stations have."