[opendtv] News: Sinclair Shares Take Hit on Worries About CW Impact

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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