[opendtv] News: Sinclair Shares Take Hit on Worries About CW Impact
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Thu, 26 Jan 2006 10:56:19 -0500
Here's another question Bert:
Do you think that Sinclair is more concerned about filling up the DTV
multiplexes of the stations that will be impacted by the UPN/WB
merger, or holding on to whatever audience they had with UPN or WB?
Maybe this is a "message from above" to our friends at Sinclair:
Don't worry about trying to compete with the broadcast networks, use
your bandwidth to compete with cable...
Regards
Craig
Sinclair Shares Take Hit on Worries About CW Impact
By Jay Sherman
<http://www.tvweek.com>http://www.tvweek.com
Shares in Sinclair Broadcast Group tumbled nearly 16 percent Tuesday
as Wall Street began speculating about how the shuttering of The WB
Network and UPN might affect the Baltimore-based station group.
At the market's close Tuesday, Sinclair's shares had sunk $1.40 to
$7.51, trading at four times their average volume.
At issue is Sinclair's high concentration of WB and UPN stations,
some of which will lose their affiliation as a result of the shutdown
of The WB and UPN to make way for a new network called The CW. The
new network, which will launch in September, will be owned 50-50 by
WB parent Warner Bros. Entertainment and UPN parent CBS Corp.
According to the company, Sinclair is in four markets where its
ownership of a WB or UPN affiliate overlaps with that of WB or UPN
stations owned by either CBS Corp. or Tribune Co.-a major WB
affiliate that will become a major affiliate of The CW. Those markets
are Tampa, Fla.; Pittsburgh; Norfolk, Va.; and Oklahoma City.
In addition, Sinclair operates both WB and UPN affiliates in four
other markets-Birmingham, Ala.; Milwaukee; Nashville; and Raleigh,
N.C.
"Some of our markets may benefit from the merger, while others may be
negatively impacted," said Sinclair CEO David Smith.
Mr. Smith said a preliminary review of the company's WB and UPN
markets revealed that about 1 percent to 1.5 percent of total net
broadcast revenues would be at risk.
The company said it will discuss the impact in more detail during its
Feb. 8 earnings conference call.
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