Fox 6 WITI finds a buyer

[PaulKTF]

http://www.bloomberg.com/apps/news?pid=20601103&sid=a3tNrZzvfKiM&refer=us

[StarvingForHDTV]

Too bad they couldn't find a better buyer.  I guess they didn't care what happened to the "assets" once they were sold.

[PaulKTF]

Too bad they couldn't find a better buyer.  I guess they didn't care what happened to the "assets" once they were sold.

On the plus side; maybe now they'll pick one logo and stick with it.

[LoadStar]

This could go in one of two directions:
1) the equity firm pumps a bunch of money into WITI and the other FOX stations to get them back up to a competitive level in the interest of selling them off eventually
2) they basically abandon them, in essence treating Local TV, LLC. as a holding company, banking that the sum of a large block of underperforming stations are worth more than the individual parts

I'm hoping for #1, but expecting #2.

[PaulKTF]

This could go in one of two directions:
1) the equity firm pumps a bunch of money into WITI and the other FOX stations to get them back up to a competitive level in the interest of selling them off eventually
2) they basically abandon them, in essence treating Local TV, LLC. as a holding company, banking that the sum of a large block of underperforming stations are worth more than the individual parts

I'm hoping for #1, but expecting #2.

I'm rooting for #2 because the results would make for much more entertaining local television.

[PaulKTF]

On the off-chance that WITI drops FOX, I wonder if FOX would try to buy out Vic Eliason's WVCY TV-30? I doubt he'd accept a buyout, but you have to assume that his TV station is bleeding money considering it's run on donations.

[Dan the Man]

Per the article:

For Oak Hill, the purchase is "a classic private-equity play,'' said Dorfman. "Ad dollars are migrating to the Web, but it's a government-licensed franchise that can throw off good cash flow and reliably service debt.''

What this means to me is:

#1 - They will suck all the money out of FOX6 that they can.
#2 - They will do this by lowering overhead as much as they can. This means new anchors, reporters, crew, etc.
#3 - Not reinvest any money in the station. I would doubt we will see any improvements.

I am pragmatic by nature and skeptical of changes. I could be wrong and what do I know since I am not an industry expert.

Check out this related info:

http://www.oakhillcapital.com/portfolio/details/index.html#local_tv

http://www.localtvllc.com/pressroom/2007/12/23/oak-hill-capital-partners-to-purchase-eight-television-stations-from-news-corporation/

http://www.localtvllc.com/

[PaulKTF]

I hope this doesn't mean the end of their airing of the syndicated COPS episodes but I guess it will.

[John L]

On the off-chance that WITI drops FOX, I wonder if FOX would try to buy out Vic Eliason's WVCY TV-30? I doubt he'd accept a buyout, but you have to assume that his TV station is bleeding money considering it's run on donations.

Paul, wouldn't that be awesome and then WITI-6 goes back to being an independent station like they once were when they started out?

Heh!  LOL!

Personally I do think WITI will continue with Fox, as they are doing very well profit wise.

-John L.