Young Broadcasting Inc. (YBI) (NASDAQ-YBTVA) today announced that it has retained prominent financial advisors Moelis & Company to conduct a process leading to the sale of the company’s largest station, KRON-TV, based in San Francisco, California. San Francisco is the sixth largest television market in the United States.
KRON-TV, a multi-award winning station, is one of the most prestigious broadcasting properties in the country. Until 2006 when it became an affiliate of MyNetwork TV, KRON-TV was the largest independent station in the United States and the only independent VHF station in its market. KRON-TV is a unique station with an important position in the market as the television news source for San Francisco. The station, due to its many hours of local programming, is benefiting from the industry trend towards increased localism.
Young Broadcasting stated that its goal was to conclude an agreement for the sale of KRON-TV before the end of the first quarter. In addition to the station’s considerable assets the buyer will benefit from certain favorable tax attributes.
“When we purchased KRON-TV in 2000 we believed we had acquired a jewel and we still feel that is the case today. KRON-TV is one of the most valuable television stations in the country”, stated Vincent Young, Chairman of Young Broadcasting. “Our decision to sell is based on the high level of interest in the property that we have received. It is purely a strategic economic decision, allowing us to benefit from the proceeds of the sale to further our future corporate initiatives.”
Moelis & Company is a relationship-based investment bank that provides advice on mergers and acquisitions, restructurings and other corporate finance matters and manages investment funds which integrate capital solutions with the firm’s advisory expertise. Moelis & Company serves a broad client base through its offices in Los Angeles, New York and Boston.
Young Broadcasting owns ten television stations and the national representation firm, Adam Young Inc. Five stations are affiliated with the ABC television network, WKRN-TV-Nashville, TN, WTEN-TV-Albany, NY, WRIC-TV-Richmond, VA, WATE-TV-Knoxville, TN, and WATE-TV-Green Bay, WI. Three are affiliated with the CBS television network, WLNS-TV-Lansing, MI, KLFY-TV-Lafayette, LA, and KELO-TV, Sioux Falls, SD and one is affiliated with the NBC television network, KWQC-TV-Davenport, IA. KRON-TV, as stated previously, is based in San Francisco, CA and is a MyNetwork TV affiliate.