Young Broadcasting Inc. announced Thursday that it has retained Moelis & Com. Holdings LLC to shop San Francisco's KRON-TV, which the New York-based station group acquired in 2000 for $823 million. KRON, the largest of 10 stations owned by Young, is an affiliate of News Corp.'s MyNetwork TV in the country's sixth-largest market. And though its sale won't fetch anything near what Young paid for it, the station should draw plenty of interest.
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A back-of-the-envelope assessment by one analyst called $300 million "a stretch." An optimistic new owner, especially if buying into a duopoly situation, might assume to generate $40 million in cash flow in a matter of years. Among those likely to bid are News Corp.'s Fox Television Stations, which could turn KRON into an owned-and-operated MyNetwork station, and Cox Enterprises Inc., whose Fox affiliate KTVU is the market's largest revenue generator. KTVU's affiliation with the Fox Broadcasting Co. -- News Corp.'s flagship TV network -- is up for renewal in a few years. - Richard Morgan
See auction story from TheDeal.com
See acquisition story from 2000 from TheDeal.com
