What: Entravision Communications Corporation has entered into an agreement with OTA Broadcasting (PSP), LLC to acquire Stations KMIR-TV, the NBC affiliate, and KPSE-LD, the MyNetworkTV affiliate, serving Palm Springs, California, for US$21 million. The transaction is expected to close in the fourth quarter of 2017.
Why it matters: The Palm Springs market is ranked as the #49 in Hispanic population.
Entravision has entered into an agreement with OTA Broadcasting (PSP), LLC to acquire Stations KMIR-TV, the NBC affiliate, and KPSE-LD, the MyNetworkTV affiliate, serving Palm Springs, California, for US$21 million. Including anticipated synergies, the transaction represents an attractive purchase price multiple of less than 6.5 times expected blended 2016-2017 pro forma broadcast cash flow, is expected to be immediately free cash flow accretive and is expected to be funded on a tax efficient basis with proceeds from the FCC broadcast incentive auction and treated as a like-kind exchange pursuant to Section 1031 of the Internal Revenue Code of 1986, as amended. The transaction, which is subject to customary closing conditions, including the prior consent of the Federal Communications Commission, is expected to close in the fourth quarter of 2017.
Walter F. Ulloa, Chairman and Chief Executive Officer of Entravision, said, “Palm Springs is a growing and vibrant market that we know very well and have served for more than 20 years. Our existing television and radio assets located in the market have helped us build strong relationships with the Palm Springs community and our local news programming, Noticias Ya, is highly rated. We are excited to add KMIR’s impactful and significant local news presence to our portfolio in Palm Springs. This is a strategic transaction that is extremely attractive on a financial basis, allowing us to broaden the services we provide the Palm Springs market and positions us to continue to build on the success of KMIR and KPSE.”
Bill Tolpegin, Chief Executive Officer of OTA Broadcasting, said, “We are grateful for the hard work and dedication of KMIR’s terrific employees during our ownership of the station. We are confident that Entravision will be a great new home for the station and its team, and look forward to following their continued success.”
Entravision currently owns and operates the UniMas and Univision affiliated television stations (KVER-CD, KEVC-CD, and KVES-LD) and 94.7 FM Jose and 103.5 FM Tricolor radio stations (KLOB-FM and KPST-FM) serving the Palm Springs, CA market, which is ranked #146 in total population and #49 in Hispanic population. Entravision’s Univision affiliate, KVER-TV is the leading station in the market, number one in full week ratings, Mon-Sun 3am-3am among Adults 18-34, 18-49 and 25-54 .