Tegna is buying Midwest Television’s KFMB-TV, the CBS-affiliated station in San Diego, as well as KFMB-D2 (CW) and radio broadcast stations KFMB-AM and KFMB-FM in San Diego, for $325 million in cash.
According to Tegna, KFMB leads the San Diego market in audience ratings and share across all demographics and is No. 1 in news across all major time slots. KFMB-D2, The CW San Diego, operates as a digital subchannel of KFMB. KFMB-TV and KFMB-D2 share studio facilities in the Kearny Mesa section of San Diego with KFMB 760 AM talk radio and KFMB-FM.
“This is a marriage of two great broadcasting cultures. We have long admired our dedicated colleagues in San Diego and look forward to continuing the stations’ high-quality journalism, editorial independence and commitment to their local community,” said Tegna President and CEO Dave Lougee in a statement. “We have a proven ability to be a strategic and disciplined consolidator with a track record of acquiring profitable businesses at an attractive, accretive valuation. Looking ahead, we will continue to evaluate additional investments and select transactions to build on our growth and success with a focus on creating shareholder value.”
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“This transaction is a testament to the outstanding value our employees have created serving the San Diego community. Having owned these properties for over 55 years, our family believed it imperative to find an excellent steward for television and radio stations that the community has embraced as part of the fabric of San Diego. We have found such a partner in Tegna, an innovative media company that shares our commitment to the highest levels of journalistic integrity and serving the greater good of the community,” said Elisabeth Kimmel, president and owner of Midwest Television, in a statement.
Tegna is paying for the deal with available cash and borrowing under its existing credit facility. The companies expect the transaction to close in the first quarter of 2018.