[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...


Sinclair Shares Take Hit on Worries About CW Impact
By Jay Sherman

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, 

"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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