Sinclair Broadcast Group

Posted on April 1, 2013 by scmccabe

S. Catherine McCabe

Sinclair Broadcasting Group

– Image courtesy of sbgi.net

Overview

The Sinclair Broadcast Group, Inc., based in Baltimore, Maryland, is a diverse television broadcasting company, which owns and operates over one hundred stations in over sixty markets around the country. It also provides programming and sales services for its stations under local market agreements (LMA), a concept that was pioneered by SBG in the 1990s. It reaches almost 30% of households in the United States and is one of the biggest broadcasting groups in the country. [1]

History

The Sinclair Broadcast Group, Inc., was founded in 1986 by the four sons of Julian Sinclair Smith, a pioneer in ultra high frequency (UHF) television broadcasting. Julian Smith started the company as the Chesapeake Television Corporation in 1971; under which name Sinclair broadcasted one of the first UHF stations in the country from their flagship station WBFF-TV. UHF broadcasting immediately became a major part in the television industry and started to become more involved with their father’s company in the 1980s.

Julian Smith’s sons began acquiring other UHF stations and quickly saw the Chesapeake Television Corporation become a major consolidator in the industry. The name was changed to the Sinclair Broadcast Group in 1985. In 1990 the Smith brothers bought the remaining shares of SBG, owned by their parents, and immediately began acquiring more stations. It was not long before SBG became one of the largest media distributers in the country. [2]

– Image courtesy of jhu.edu

Smith Brothers

David D. Smith

David D. Smith is currently serving as the President and Chief Executive Officer of the Sinclair Broadcast Group and has held the position since 1988. He was a major part it’s founding in 1986 and has help a position on the Board of Directors since. Before Sinclair, Smith was an officer and director at Comark Communications, a manufacturer of high power transmitters for UHF television companies, which he founded. [3]

Frederick G. Smith

Dr. Frederick G. Smith was an oral and maxillofacial surgeon before coming to Sinclair as the Vice President. He took that position in 1990 and has served on the Board of Directors since 1986. Dr. Smith also serves as a director or trustee of Sinclair Ventures, Inc., the Freven Foundation, Gerstell Academy, University of Maryland at Baltimore Foundation, St. Joseph’s Hospital, The Sinclair Relief Fund, Bay Television Inc., Cunningham Communications Inc., Gerstell Development, LP, Keyser Investment Group, Inc. and Beaver Dam, LLC. [3]

J. Duncan Smith

J. Duncan Smith who started off building and operating television stations in Pittsburgh, PA; Columbus, OH; Bloomington, IN; and multiple cities in Florida, now serves as the Vice President, Secretary and a Director of Sinclair. He has been with Sinclair since it’s founding in 1986. Before Sinclair, Duncan also worked with David at Comark Communications. [3]

Robert E. Smith

Robert E. Smith served as the Vice President and Treasurer of Sinclair from 1988 to 1998. he later resigned from this position to shift focus to a commercial real estate investment firm which he started. He still holds a position on the Board of Directors which he has held since 1986. Before Sinclair, Robert also worked at Comark Communications with his brothers. [3]

Affiliates

-Image courtesy of sbgi.net

Sinclair has stations in over sixty markets across the country and they have agreements with 8 different networks. These include 27 FOX, 20 MyTV, 20 CW, 17 ABC, 15 CBS, 11 NBC, 1 Azteca and 1 Independent affiliate. [4]

Investments

In the past Sinclair has made very strategic investments over a variety of different industries. They currently hold interest in over five different companies. These include: [5]

Sterling Venture Partners a private equity firm that invests $5 million to $100 million in early-stage and expansion-stage health care, software, education, industrial technology and business services companies.
-Image courtesy of sbgi.net

Allegiance Capital a private mezzanine venture capital fund, which invests in the subordinated debt and equity of privately held companies.
-Image courtesy of sbgi.net

Patriot Capital provides structured debt and mezzanine financing to small businesses.
-Image courtesy of sbgi.net

Ring of Honor wrestling programing known for its athleticism and professional wrestling.
-Image courtesy of sbgi.net

Triangle Sign and Service private company that fabricates, installs and services commercial signs across the country.
– Image courtesy of sbgi.net

Alarm Funding Associates security funding and acquisition company helping full service alarm operating companies.
– Image courtesy of sbgi.net

Bay Creek a planned community on almost 1,800 acres surrounding Cape Charles.

-Image courtesy of sbgi.net

In Recent News

On May 21st, 2011 Sinclair announced the acquisition of the “Ring of Honor” wrestling franchise. It is the third largest wrestling promotion in the country. Sinclair believes their backing and the power of the relationship between television and wrestling will allow ROH to become a household brand. It will premiere on Sinclair’s vast network of stations, as well as access for people outside of their markets online. ROH will be led by Chief Operating Officer, Joe Koff who was previously the director of sales at Sinclair Broadcasting Group. [6]

On September 8th, 2011 it was announced that Sinclair would be purchasing Four Points Media group for $200 million from affiliates of Cerberus Capital Management, L.P. In this deal they acquired seven different stations from five extremely strong markets in Salt Lake City, West Palm Beach Austin, Texas and Providence, Rhode Island. The acquisition was finalized in January 2012 when they finally received approval from the FCC. [7] [8]

On November 2nd, 2011 Sinclair purchased the broadcast assets of Freedom Communications for $385 million. Freedom Communications reaches over 2% of households over seven different markets. The FCC granted them approval for this deal on March 13, 2012 even though Sinclair had already been managing all of Freedom Communications’ stations since December of 2011. [9]

On February 28th, 2013, Sinclair acquired 24 stations from Barrington Broadcasting Group, LLC. for $370 million. Sinclair will buy 18 of the 24 stations and then will operate and provide sales services for the other 6 stations. They are currently waiting on approval of the FCC and antitrust clearance. However, due to FCC rules, Sinclair has chosen to sell it’s FOX affiliate in Syracuse, NY. They will then purchase a MNT affiliate in Syracuse under a local marketing agreement. Sinclair also announced the purchase certain COX Media stations. They are predicting the combination of these two deals will result in about $232 million of increased equity and $2.85 per share. [10]

Sinclair Broadcast Group has a history of struggling to come to retransmission agreements with the different cable providers. In the past they have had issues with both Time Warner Cable and Comcast and most recently they have finished negotiations with Dish Network and DirecTV. During their negotiations with the Dish Network, Sinclair threatened to black out over seventy channels if they did not come to an agreement by August 13, 2012. Dish Network claimed that Sinclair was charging more than any other broadcaster to carry their channels and Sinclair had doubts of whether or not they would be able to come to an agreement. They did not reach an agreement until August 16, 2012, but fortunately there was no lost signal during the extension. Similar circumstances surrounded their retransmission agreement with DirecTV, however they were able to come to an agreement just hours before 87 channels were due to go black. This deal was made on February 28, 2013. [11] [12]

Sources:

[1] SBG Company Profile http://www.sbgi.net/about/profile.shtml

[2] SBG History http://www.sbgi.net/about/history.shtml

[3] SBG Directors http://www.sbgi.net/corp_governance/directors.shtml

[4] SBG Affiliates http://www.sbgi.net/business/television.shtml

[5] SBG Investments http://www.sbgi.net/business/ventures.shtml

[6] SBG News Release- Ring of Honor Acquired http://www.sbgi.net/site_mgr/temp/ROH-2_9c2yxbl4.shtml

[7] TV News Check- Four Points Media Acquisition http://www.tvnewscheck.com/article/53840/sinclair-buys-four-points-media-for-200m

[8] TV News Check-Four Points Media Acquisition http://www.tvnewscheck.com/article/56431/sinclair-closes-four-points-media-acquisition

[9] SBG News Release- Freedom Communications acquisition http://www.sbgi.net/site_mgr/temp/Freedom_dbzq8g62.shtml

[10] SBG News Release- Barrington Broadcast Acquisition http://www.sbgi.net/site_mgr/temp/_7xfvjv6f.shtml

[11] The Daily News- Sinclair TV Blackout http://thedailynewsonline.com/news/article_6b4bfd54-e61e-11e1-8cf8-001a4bcf887a.html

[12] TV News Check- Sinclair and DirecTV deal http://www.tvnewscheck.com/article/65829/sinclair-and-directv-make-retrans-deal

Ion Media Networks

Posted on December 2, 2012 by Daniel Buczakowski

by Daniel Buczakowski

Address: 601 Clearwater Park Road
West Palm Beach, FL 33401
Phone: (561) 659-4122
Website: ION Media Networks

Key Executives:

Brandon Burgess
Chairman and CEO

Chris Addeo
Marketing

Stephen Appel
Sales

Jeff Quinn
Finance

Terri Santisi
Administration

Marc Zand
Programming Acquisitions

Douglas Holloway
Distribution

: Dan Hsieh
Innovation

: Michael Hubner
Legal

Joseph Koker
Stations

: David Glenn
Engineering

: Russel Frederickson
On-Air Services

Major Competitors

Fox Broadcasting Company
Colombia Broadcasting System (CBS) Broadcasting Inc.
Sinclair Broadcasting Group Inc.
American Broadcasting Company (ABC)
The CW Television Network

A Brief History

ION Media Networks was founded in 1984 as Paxson Communication in Clearwater Florida. Owning multiple radio stations and a few ABC and NBC network affiliate stations, Paxson Communication eventually became Florida’s largest radio group. In 1994, Paxson acquired 55 percent of American Network Group for $2.5 million. As American Network Group was a publicly held company, Paxson itself became a public company, and by doing this avoided the costs inherent with an initial public offering (IPO). This also gave Paxon access to public capitol to help the company grow through more acquisitions. In 1998 the company decided to build it’s own independent television company, and PAX TV (Later to be known as the PAX network) was born. 1994 was a big year for Paxson, this was the year they also acquired their first television stations, WPBF-TV in West Palm Beach, Florida, WTLK-TV in Atlanta and Rome, Georgia, and WYVN-TV in Martinsburg, West Virginia. By the end of 1997, Paxson had grown so large that it owned more then 60 stations and covered 60 percent of all US households, and had revenues that exceeded $88 million after selling it’s radio division to Clear Channel Communications for $693 million in cash. However, operating loss had also grown to $22 million, a major difference from the $4 million of 1996. This was just the beginning of Paxson’s financial problems, for by 1998, Paxson’s operating capitol had shrunk to $1.8 million and it’s net loss had risen to $137.9 million, while total revenue was only $134.7 million. By the year 2007 after lengthy legal battles with NBC Universal, the company’s founder Bud Paxon sold his shares of the company and retired. Branden Burgess replaced him as President and C.E.O. and the company was renamed ION Media Networks Inc.

History of Financial and Legal problems

1999 Paxson reports a negative cash flow of $102.6 million with a long term debt of $382 million.

September 1999: NBC buys 32% share in Paxon for $415 million. Effectively bailing Paxson out and to Paxon’s consternation, becoming effectively an equal partner rather than a minor shareholder.

December 4, 2001: Paxon files and arbitration to block NBC’s acquisition of Telemondo.

September 2002: Paxon arbitration against NBC was denied.

November 13, 2003: NBC requests redemption of it’s $549.2 million investment in Paxon.

August 2004: NBC Universal files lawsuit against Paxon.

November 7, 2005: In and agreement with NBC Universal, Lowell Paxon leaves the company and sells his shares to NBC Universal. He is replaced with Brandon Burgess.

November 2007: ION Networks is taken to trial by Positive Ions Inc. for trademark infringement. ION Networks loses and is forced to pay Positive Ions $1.7 million.

May 19, 2009: ION Media Networks files for Chapter 11 bankruptcy protection with $2.7 billion of debt.

December 2009: Emerges from bankruptcy as a privately owned company under the ownership of its bondholders and secured lenders.

Today

Currently, ION Media Networks is one of the largest privately owned television networks in the country, with over 60 television stations in North America. Under Brandon Burgess’ direction, ION Media Networks has rewritten it’s policies to follow four main objectives:

Innovation

By fostering an environment which gives it’s employees the freedom to explore new ideas, while also helping them stay focused to the task at hand, ION Media Networks is able to create new opportunities as opposed to rehashing the same ideas over and over.

Diversity

Understanding that sometimes the greatest ideas come from differing viewpoints, ION Media Networks takes great pride in hiring a diverse group of employees. Their motto being that multiple inputs often yield the most valuable outputs.

Empowerment

By providing the tools and support needed to succeed, Ion Media Networks empowers their employees to take the necessary steps to accomplish their goals.

Accountability

ION Media Networks fully stands behind all of it’s employees. Holding themselves accountable not only to their audience, but to themselves as well. Each employee shares in the companies success as well as the burden of their failures.

Major Divisions

ION Media Networks is broken down into four major divisions: ION Television, Qubo, ION Life and Dyle.

One of the fastest growing television networks in the nation, ION Television focuses on syndicated network shows as well as introducing new original programming and special event programming. A leader in the Adult 25-54 and Women 25-54 demographics, ION Television reaches more than 100 million US households. Starting in October of 2012, ION Television adopted an 108-hour network programming schedule, providing general entertainment programming from 11am – 3am Mondays – Fridays, 1pm – 3am Saturdays and Sundays. All other times are filled with religious programming or infomercials.

Programs:

Cold Case
Criminal Minds
Flashpoint
House
Law & Order: Criminal Intent
Leverage
Numb3rs
Psyche
WWE Main Event
My Name is Earl
Without a Trace
Married With Children
Monk

Specifically targeting children in the 5 – 8 age range, Qubo offers quality children’s programming 24/7. Available via over-the-air coverage, cable, satellite and telco, Qubo has won multiple awards from both the FCC and the US government in recognition of it’s dedication to improving children’s health and reducing childhood obesity. Qubo was also recognized by the US government as one of the most trustworthy sources of children’s television. Qubo is a joint venture between Ion Media Networks, NBC Universal, Corus Entertainment’s Nelvana, Scholastic Corporation and DreamWorks Classics.

Programs:

Taste Buds
Jakers
Harry and his Bucket Full of Dinosaurs
Timeblazers
Willa’s Wild Life
The Mysteries of Alfred Hedgehog
Artzooka!
Where on Earth is Carmen Sandiego?
Animal Atlas
Dex Hamilton Alien Entomologist
Animal Exploration with Jarod Miller
Peralie
3 2 1 Penguins!
Gofrette
Turbo Dogs
Mighty Machines
Jane and the Dragon
Rescue Heroes
Babar
My Friend Rabbit
Jacob Two-Two
Vita Minix
Marvin the Tap-Dancing Horse
The Zula Patrol
Miss BG
Pecola
Pippi Longstocking
Rupert Bear

Focusing on adult viewers, ION Life is dedicated to helping people live healthier, more active lives. Featuring programs featuring: home design, wellness, healthy and active living, adventure and community engagement, ION Life is is focused on celebrating life’s positive adventures. Available via over-the-air coverage, cable, satellite, and telco. The Network was going to be named iHealth prior to Ion Televisions name change.

Programs:

Absolute X
Alive + Well
Body Fuel
Drop In
Gadget Girlz
Killer Comebacks
My Green House
Planet X
Positive Living
Power Yoga
Smart Cookies
Style by Jury
The Right Fit

The mobile branch of ION Media Networks, Dyle Mobile TV allows viewers to watch broadcast television shows right on their mobile Android and IOS devices. Partnering with major broadcasters ABC, NBC, CBS and Fox among others, the application also allows viewers access to live local and national news as well as sports and entertainment. Although currently limited in coverage, future expansion is expected soon. You can check availability in your area on their coverage map.

Recent News

June

ION Television debuts WWE Main Event.

August

ION Television acquires off-Network rights to Numb3rs

ION Television acquires Law & Order: Criminal Intent

September

Flashpoint debuts Season 5

October

ION Media Networks announces agreement with DirecTV

Refrences

[1] ION Media Networks Homepage: http://www.ionmedianetworks.com/
[2] Ion Television: http://iontelevision.com/
[3] Fox Broadcast Company: http://www.fox.com/
[4] CBS Broadcasting Inc.: http://www.cbs.com/
[5] Sinclair Broadcasting Group Inc: http://www.sbgi.net/
[6] Qubo: http://www.qubo.com/
[7] ION Life: http://www.ionlife.com/
[8] Dyle: http://www.dyle.tv/
[9] Wikipedia: http://en.wikipedia.org/wiki/Ion_Media_Networks
[10] Press releases: http://www.ionmedianetworks.com/press
[11] Answers.com: http://www.answers.com/topic/ion-media-networks-inc
[12] ABC: http://abc.go.com/
[13] The CW: http://www.cwtv.com/
[14] NBC Universal: http://www.nbcuni.com/
[15] Corus Entertainment: http://www.corusent.com/home/default.aspx
[16] Nelvana: http://www.nelvana.com/
[17] Scholastic Corporation: http://www.scholastic.com/home/
[18] DreamWorks: http://www.dreamworksanimation.com/

* All images are courtesy of ION Media Networks *

Gannett Broadcasting

Posted on September 19, 2012 by sweinste

by Scott Weinstein

Gannett Co., Inc.
7950 Jones Branch Drive
McLean, VA 22107-0150
703-854-6000 / www.gannett.com

A Brief Overview

In 1923, Frank Gannet founded Gannett Company, Inc. in Rochester, New York. It began as an extension of Gannett’s newspaper company that was founded in 1906 and has expanded to a multi-media company that no longer just publishes newspapers (1). “Gannett is a media and marketing solutions company with a diverse portfolio of broadcast, digital, mobile and publishing companies.” They own more than 90 daily newspapers, about 1,000 weekly newspapers, 23 television stations and many more media holdings. Gannett operates in 41 U.S. states and six countries (2). Gannett is expanding its brand and as the CEO, Gracia Martore said at the UBS Global Communications Conference, “The media business does not stand still for even a minute we take for granted that change is relentless and we have to show up with our A game everyday.” (3)

Gannett Broadcasting: Company Overview

Gannett Broadcasting’s division is comprised of 23 television stations and its subsidiary Captivate. The former reaches 21 million households in 20 markets, which is approximately 18.2% of the U.S. population (2). The latter is a company that delivers news, information, and advertising through video monitors in elevators. They are currently located in North America and reach more than 4 million workers (4). At the end of 2011, the amount of employees, both full-time and part-time, totaled about 2,600 (5).

Executives (6)

The Faces of Gannett Company, Inc. (Lougee, Beall, Martore, Harker)(16,17,18,19)

Broadcast Office

David T. Lougee , President, Gannett Broadcasting

Lynn Beall; Executive vice president, Gannett Broadcasting, and president and general manager, KSDK-TV, St. Louis, MO

Company Office

Gracia Martore, President and Chief Executive Officer

Victoria D. Harker, Chief Financial Officer

Assets

As noted earlier the company owns 23 different television stations across the country, in 21 different markets. Seven of the 21 markets owned by Gannett are in the top 20 market (7).

: (20, 21, 22, 23)

The stations are comprised of 12 NBC affiliates, 6 CBS affiliates, 3 ABC affiliates, and two MyNetworkTV affiliates. These affiliation agreements expire with NBC in 2017, with CBS in 2015, and with ABC and MyNetwork TV in 2014. The most successful weekly audiences, based on the November 2011 Nielsen sweeps, are the CBS affiliate in Washington DC (WUSA-TV) with 1,797,000; the NBC affiliate in Atlanta, Georgia (WXIA-TV) with 1,602,000; and the NBC affiliate in Minneapolis-St.Paul, Minnesota (KARE-TV) with 1,297,000. (8)

The ratings of these stations continue to do well. Lucky for Gannett, more than half of its stations are NBC affiliates, and this past November was the first time since 2003 that NBC ranked number one in the Nielsen prime time ratings programming amongst adults 18-49. This increased revenue, as many people tuned into the NBC programming. Furthermore, the past Summer Olympics in London were the most watched games in Olympic history, attracting more than 200 million people. KUSA-TV in Denver was the top rated NBC market affiliate during the two-week span of the games. Their Atlanta and Minneapolis NBC affiliates were ranked second and third respectively; and their St. Louis and Phoenix did well. In total the Gannett owned affiliate stations took six of ten top NBC affiliate markets in terms of ratings during the Olympics (3).

Arizona	FlagstaffPhoenix	KNAZ-TV (NBC )KPNX-TV (NBC)
Arkansas	Little Rock	KTHV-TV (CBS)
California	Sacramento	KXTV-TV (ABC)
Colorado	Denver	KTVD-TV (My Network TV )KUSA-TV (NBC)
District of Colombia	Washington	WUSA-TV (CBS)
Florida	JacksonvilleTampa-St. Petersburg	WJXX-TV (ABC)WTLV-TV (NBC)WTSP-TV (CBS)
Georgia	AtlantaMacon	WATL-TV (My Network TV)WXIA-TV (NBC)WMAZ-TV (CBS)
Maine	BangorPortland	WLBZ-TV (NBC)WCSH-TV (NBC)
Michigan	Grand Rapids	WZZM-TV (ABC)
Minnesota	Minneapolis-St. Paul	KARE-TV (NBC)
Missouri	St. Louis	KSDK-TV (NBC)
New York	Buffalo	WGRZ-TV (NBC)
North Carolina	Greensboro	WFMY-TV (CBS)
Ohio	Cleveland	WKYC-TV (NBC)
South Carolina	Columbia	WLTX-TV (CBS)
Tennessee	Knoxville	WBIR-TV (NBC)

Financial Information

Gannett Company, Inc. is a publicly traded media holding company (GCI). On October 15 the third quarter results were released, and the broadcasting division’s success was monumental. Both revenue and profits were at a record high in all of Gannett broadcasting history. The operating revenue increased 36% from $174.3 million the last 3^rd quarter to $237 million during the most recent 3^rdquarter. The television revenue was also up 38.1% from $168.8 million a year ago to $233 million. The substantial increase is mostly attributed to advertising, which includes $41.7 million spent on political advertising and $37 million spent on the summer Olympics related ads. The Olympics brought in an unprecedented amount of revenue from advertising. Their total was up 18% from four years ago during the Beijing Olympic games. Part of the explanation was that Gannett reached out to local advertisers to sell television time to. Lougee is looking to increase the revenue even more during the 2014 Winter Olympic games in Sochi, Russia. In total, political revenue for the year will be $150 million. Prior to the 2012 election, Gannett lacked a strong political footprint, but that changed during this election. Because of more local coverage of elections, especially in swing state markets including Colorado, Florida, and Ohio, political advertising increased by a significant margin. Another source of the revenue came from retransmission fees, which accounted for $22.3 million. With retransmission consent in 2013, Gannett will receive 135-140 million from distributors, which is up 41 to 46% from 2012. The fourth quarter results are expected to be at an all time high. When the books are closed for Gannett’s fiscal year, the broadcasting division will report record growth and revenue (3) (9).

YTD Stock Price (December 6, 2011-December 6, 2012) (24)

As far as the stock market is concerned, the current share price for GCI is $17.88. Their share price has seen an incline for the most part, as a year ago it was being sold at $13.13 (10) Just recently, a report was released by Dividend Channel that named them the top dividend stock with insider buying. On October 23, the Board of Directors of Gannett announced that a dividend of $0.20 per share would be payable to stockholders just after the new year. As of now the company is on track to return dividends up to $1.3 billion through 2015. Throughout the UBS Global Media and Communications Conference a common theme that both the CEO and CFO spoke about was making sure an increasing level of capital is returned to their shareholders. Furthermore, there is currently a large amount of cash flow totaling over one billion dollars. That money will be used to return even more cash and to invest into things that will expand the Gannett brand (3) (11).

Recent Happenings

Gannett and Dish Network

(25)

In late May, Dish Network introduced its Auto Hop feature available on its DVR service. This new technology allows users to skip over commercials on broadcast networks. While this is beneficial for TV viewers it hurts the broadcasters who lose advertising revenue. As a result of this feature, Dish Network and Gannett were having difficulty renewing their retransmission agreements (12). Gannett was looking for a 300% rate increase to compensate for the loss of revenue from advertisers. Dish Network’s stance was that they wanted to take a stand for customer choice and control. Fortunately for subscribers, rather than suffer from a blackout, the two companies reached a deal as the October 7^th deadline was slightly extended. The terms of the deal have not been released, but the new contract is long term according to press releases by both companies (13).

Gannett and DirecTV

(26)

DirecTV customers narrowly avoided a blackout of Gannett television stations across the country. As the November 30^th deadline approached, Gannett warned their viewers that they may experience a blackout of affiliate stations until an agreement was reached. This was all because Gannett was looking for a fair deal for retransmission fees, while DirecTV said that Gannett was trying to get customers to pay almost twice what they pay now for their stations. While the deal was made by the deadline, the details of the agreement have not been made public yet (14).

Sources

1. History of Gannett

2. Background info on the company

3. 40th Annual UBS Global Communications and Communications Conference Slide Show presentation Dec 5, 2012

4. About Captivate

5. 2011 Annual Gannett Company, Inc. Report

6. The Gannett Company, Inc. Leadership Team

7. http://www.stationindex.com/tv/tv-markets

8. 2011 Annual Gannett Company, Inc. Report pgs. 14-17

9. Q3 Earnings, October 15, 2012

10. Google Finance

11. Press Release, December 5, 2012

12. http://online.wsj.com/article/SB10000872396390443768804578038742408997314.html

13. http://www.reuters.com/article/2012/10/08/us-dish-gannett-idUSBRE89403I20121008

14. http://www.rapidtvnews.com/index.php/25251/gannett-directv-avoid-local-tv-blackout.html

20. MyNetworkTV image

21. NBC image

22. ABC image

23. CBS image

24. Google Finance image

25. Dish Network image

26. DirecTV image

27. Gannett image

Sinclair Broadcast Group

Posted on September 18, 2012 by tmvansic

by [Taylor Van Sickle]

[1]

Sinclair Broadcast Group, Inc.

10706 Beaver Dam Road

Hunt Valley, Maryland 21030

(410) 568-1500

www.sbgi.net

[2]

David D. Smith, President and CEO of Sinclair Broadcast Group, Inc.
[7]

Executives

David D. Smith: President, Chief Executive Officer, Chairman of the Board and Director – David D. Smith has held his position as President and CEO since 1988. Prior to working for Sinclair he founded Comark Communications, Inc. He played a very important role in the creation and success of Sinclair Broadcast Group, Inc [2].

Frederick G. Smith: Vice President and Director

J. Duncan Smith: Vice President, Secretary and Director

David B. Amy: Vice President and Chief Financial Officer

David R. Bochenek: Vice President and Chief Accounting Officer

Barry M. Faber: Executive Vice President and General Counsel

[2]

History

Sinclair Broadcast Group started out as one station in Baltimore, Maryland. The original station was created in 1971 by Julian Sinclair Smith, but it wasn’t until 1986 that his four sons came up with the idea of the Sinclair Broadcast Group. After only 10 years Sinclair Broadcast Group became the largest commercial television broadcasting company not to be owned by a network in the country. Sinclair Broadcast Group faced some rough times during 2001, but was able to make it through and by 2006 had become the largest FOX and MyNetworkTV affiliate groups. They also became the second largest ABC affiliate and the third largest affiliate for the CW network in the United States. The success of Sinclair Broadcast Group in the past is not surprising when looking at their continued success in 2012 [4].

Company Overview


Sinclair Broadcast Group, Inc. Network Affiliates [3]

The Sinclair Broadcast Group, Inc. is headed by President and CEO, David Smith. David Smith has been President and CEO since 1988 and has contributed exponentially to the company. He has also served at Chairman of the Board since 1990. He has helped build Sinclair Broadcast Group since the start of the company. As one of the leading television broadcasting companies in the United States, Sinclair Broadcast Group manages 74 television stations within 45 markets. The broadcasting company includes FOX, ABC, CW, CBS, MTV, NBC, MyTV, and Azteca affiliates. Sinclair operates 20 FOX stations, 18 MyTV, 11 ABC, 14 CW, 9 CBS, 1 NBC, and 1 Azteca. With these networks Sinclair is able to reach about 26.3% of households in the country [3]. Sinclair Broadcast Group, Inc. continues to grow in size and range. They reach a large amount of households in the country and continue to increase the number of people that they reach.

Competitors

Media General, Inc.

Hearst Television Inc.

Local TV, LCC

[6]

Recent News

August 13th, 2012 Sinclair Broadcast Group’s retransmission consent agreement with Dish Network was about to end and the two companies were in talks to either create a new one or Dish would stop carrying some of Sinclair’s stations. To be exact if the companies did not create a new retransmission consent agreement Dish would stop broadcasting 70 of Sinclair’s stations. Later Sinclair Broadcast Group announced its agreement with Dish Network to create a new retransmission consent agreement [5].

September 19th, 2012 Michael Simon was named Director of Advanced Technology for Sinclair Broadcast Group. Previous positions include Manager of Advanced Technology for Rohde & Schwarz, Lead Application Engineer for Harris Corporation, and Chief Engineer for Sinclair’s Pittsburgh market. In this position Mr. Simon will be in charge of developing new technologies to further advance the broadcasting company’s business. Sinclair’s Vice President of Advanced Technology, Mark Aitken said that, “Sinclair is probing the fundamental technologies that will enable us to leverage future business-enabling technologies,” which Mr. Simon will contribute to greatly [5.1].

October 12th, 2012 Sinclair Broadcast Group decided to close their previous contribution of $500 million of senior unsecured notes. By closing this offer, Sinclair Broadcast Group used the profits to then buy multiple stations from Newport Television LLC. Also, they intended to use the profits from this to pay off outstanding debt and for other company purposes [5.2].

November 13th, 2012 Sinclair Broadcast Group announced an exciting partnership with DataSphere Technologies. DataSphere Technologies is a marketing company that focuses mainly on local businesses to help them gain exposure. The two companies made an agreement that Sinclair will promote event calendars, and small business marketing solutions over 21 of their markets in the country. This partnership is important for both DataSphere and Sinclair. It offers DataSphere an opportunity to promote their services and get more business. The deal offers Sinclair a way to connect with local businesses in their markets and get advertising for their stations and website [9].

December 1, 2012 Sinclair Broadcast Group has obtained several more stations, while also getting rid of some of its previously existing stations. Through their deal Sinclair gained 6 new stations from Newport Television LLC. Along with the stations Sinclair also purchased Newport’s rights under the local marketing agreements with two stations. Sinclair also obtained Newport’s non-license assets for their station in Rochester for $54 million. While gaining stations, Sinclair also sold some of its preexisting stations. Sinclair made a deal with Deerfield Media, Inc. selling them their station in San Antonio and Cincinnati. Sinclair also sold them license assets to two of their stations. With these stations gains Sinclair added stations to four markets that they presently existed in and added two new markets to their business. The total deal cost them $459.7 million [8].

Finances

In Sinclair Broadcast Group, Inc.’s quarterly numbers, they are doing significantly well this year. Their total revenue over a three-month period this year was $260,489 as opposed to last year’s total revenue of $181,042. Also their total revenue over a nine-month period increased between this year and last year as well from, $552,511 to $736,817 [10].

In November the Board of Directors at Sinclair Broadcast Group, Inc. stated that the company’s Class A and Class B stock will have a $1.00 dividend per share and a quarterly dividend of $0.15 per share [5.3]. Also the company announced that for the third quarter of this year the earned $0.32 per share. This earning did not, however, match the estimated amount of $0.35 per share [10].

Sinclair Broadcast Group, Inc. Stock Information [11]

Sinclair Broadcast Group, Inc. Income Chart [12]

Future

Sinclair Broadcast Group Stock [12]

With their newly obtained stations Sinclair Broadcast Group, Inc. plans to keep expanding their hold on television broadcasting. The company is well versed in the television broadcasting business and they understand what they need to do to stay successful. Their revenue numbers show increased success throughout the fourth quarter. The company’s stock from the last month has decreased but over the course of this year it has stayed steadily in the same region. Sinclair Broadcast Group, Inc. has been a strong company since its humble beginning as one station in Maryland. There is no doubt that Sinclair Broadcast Group will continue to be a major player in the television broadcasting spectrum.

Sources

1. Google: http://images4.wikia.nocookie.net/__cb20110515151804/logopedia/images/6/67/Sbg.gif

2. Sinclair Broadcast Group Website: http://www.sbgi.net/corp_governance/officers.shtml

3. Sinclair Broadcast Group Website (Company Profile): http://www.sbgi.net/about/profile.shtml

4. Sinclair Broadcast Group Website (History): http://www.sbgi.net/about/history.shtml

5. Sinclair Broadcast Group Website (News Releases): http://www.sbgi.net/site_mgr/temp/Dish%20Aug%202012%2D2%5Fdsrp65vp%2Eshtml

5.1 Sinclair Broadcast Group Website (News Releases): http://www.sbgi.net/site_mgr/temp/Simon%5Fwfbylrjx%2Eshtml

5.2 Sinclair Broadcast Group Website (News Releases): http://www.sbgi.net/site_mgr/temp/2012%20Notes%20Offering%20closing%5F46lhc5gp%2Eshtml

5.3 Sinclair Broadcast Group Website (News Releases): http://www.sbgi.net/site_mgr/temp/CS%2012142012%5Fqvd16wqb%2Eshtml

6. Hoovers: http://www.hoovers.com/company-information/cs/company-profile.Sinclair_Broadcast_Group_Inc.16dff58899664af8.html

7. http://www.bizjournals.com/baltimore/news/2012/04/17/sinclair-broadcast-ceo-smith-gets-16.html

8. Bloomberg: http://www.bloomberg.com/article/2012-12-03/a5oA5IyRyJak.html

9. Bloomberg: http://www.bloomberg.com/article/2012-11-13/a9hfDdS2uETk.html

10. New York Times: http://topics.nytimes.com/topics/news/business/companies/sinclair-broadcast-group-inc/index.html

11. New York Times: http://markets.on.nytimes.com/research/stocks/tools/analysis_tools.asp?symbol=SBGI

12. Bloomberg: http://www.bloomberg.com/quote/SBGI:US

Universal Pictures

Aside

by [Bobby O'Brien]

Universal Pictures Logo [1]

Overview & History

Universal Pictures, a subsidiary of NBC Universal, is considered one of the planet’s most renowned film studios. For nearly a century the company has produced academy award winning films and culture shaping content. Over the past 6 months, Universal Picture’s tradition of excellence has continued. Since June 29th 2012, Universal Pictures has released 5 major motion pictures. Of these films, 4 have placed within the top 70 grossing films of 2012, and 3 have placed within the top 50. These five films have accumulated a combined gross product of $442, 317, 963. [2]

Carl Laemmle [4]

In 1915, German-American Film pioneer, Carl Laemmle, founded Universal Studios with the help of Abe and Julius Stern. The trio constructed two movie sets on a former chicken farm in Los Angeles California. Ninety-eight years later, 100 Universal City Plaza Drive in Los Angeles California remains the home of Universal Studios. [3] Today Universal Pictures is spearheaded by several accomplished and capable leaders, including James Schamus, Jimmy Horowitz, Cindy Gardner, Adam Fogelson, and Rick Finkelstein.

Executives

James Schamus [6]

James Schamus is the Chief Executive Officer of Universal Pictures. He has held the position since May of 2006. Schamus also serves as the Co-President of Focus Features, a sister company of Universal Pictures. [5]

In May of 2010, Jimmy Horowitz was named president of Universal Pictures. Horowitz manages day to day business operations for the studio and serves as a key member for Universal’s senior management team. He has worked for Universal for more than 18 years. [7]

Cindy Gardner has served as Universal Studio’s Senior Vice President since September 2005. Gardner is responsible for the company’s media relations, issues management, philanthropy, and special events. [8]

Adam Fogelson has held the title of Chairman of Universal Pictures since October of 2009. He oversees worldwide operations for the motion pictures group. Projects that Fogelson has worked on include American Pie, Knocked Up, and Erin Brockovich. [9]

Rick Finkelstein serves as Universal Pictures Vice Chairman and Chief Operating Officer. This Jerry Seinfeld-look-alike oversees Universal Picture’s worldwide home entertainment and television distribution. [10]

Recent News

September:

September 7th, 2012

The Street has recently informed the public of Universal Pictures plans to release Pitch Perfect, a musical comedy staring Anna Kendrick, on Friday September 28th, one week earlier than its scheduled premiere on October 5th. The film’s wide release is set to remain on its prior date, however select theaters in North America will have an opportunity to see it ahead of time. The limited release was constructed following positive feedback from early screening moviegoers. Universal Pictures feels that Pitch Perfect has a reliable and sturdy target audience that is eager for the film’s release. To some surprise, Universal Pictures has promoted Pitch Perfect with “the most extensive screening campaign in the studios history.” [11]

September 25th, 2012

The Hollywood Reporter reports that Universal Pictures has set a record for the “highest grossing-year domestically in the studio’s 100 year history”. On Monday September 24th, the studio surpassed the previous record of $1.27 billion set in 2008. More than a third of the studio’s gross product came from The Lorax and Ted, acquiring a combined $432 million. This ground-breaking news comes before the release of four major Universal Pictures’ films, including Pitch Perfect, The Man WIth the Iron Fists, This is 40, and Les Miserables. Universal Pictures is on track to shatter its 2008 record. Perhaps it will be far more than four years before the record of 2012 will be broken. [12]

October:

October 29th, 2012

According to Variety, Universal Pictures has alas acquired the rights to Subdivision. The sci-fi comedy written by Morgan Jugerson and Alex Ankeles will be produced by Justin Lin and Elaine Chin. All involved in the deal have been sure to keep the

Fast Five [16]

premise under wraps. Lin may be remembered for his recent success associated with Fast Five, a film he produced that was released in April of 2011. Universal’s VP of production, Kristin Lowe, will oversee the project. Unfortunately, a feasible release date for the film has yet to be determined. [13]

October 31st, 2012

PR Newswire has reported that Universal Pictures will release its Despicable Me 2, trailer on iTunes today. The occurrence marks the first time that the studio has released a trailer on iTunes with international versions available within the same 24 hour period. This development perhaps illustrates the studio’s continued technological and global advancements. Despicable Me 2 hits theaters on July 3rd 2013. [14] Universal will attempt to play off of the success of Despicable Me, which raked in a total domestic gross of $251,513,985 in the summer of 2010. [15] Look for Despicable Me 2 to make a big splash this summer.

November:

November 12th, 2012

The Hartford Courant has recently reminded us that, November 15th, 2012 marks the 50th anniversary of the groundbreaking premiere of To Kill a Mocking Bird. Universal

To Kill A Mockingbird [18]

Pictures’ adaptation of Harper Lee‘s novel will be re-released on Thursday, November 15th in select theaters. The 1962 film won Gregory Peck an Oscar for his portrayal of Atticus Finch. It will forever be remembered as an American classic. [17]

November 13th, 2012

At 9 a.m. pacific standard time, the Los Angeles Times reported a story that is sure to shake up the film industry. According to the newspaper, Michael Eisner‘s Tornante Co. has finalized a distribution deal with Universal Pictures. The multiyear deal will lead Universal Pictures to market and distribute movies financed by Tornante. Eisner is the former Chief Executive Officer of the Walt Disney Company. In an attempt to “return to his roots” of moviemaking Eisner looks to take advantage of the industry’s lack of original stories. He hopes that the first of Tornante’s feature films will be released no later than early 2014. In a time when the film industry is cluttered with sequels and remakes, it is encouraging to hear of an opportunity for new and original content. With the money and support of Universal Pictures, Tornante Co., is likely to become a household name in Hollywood. [19]

November 29th 2012

In March of 2012 Universal Pictures Spent $5 million to acquire the movie rights of Fifty Shades of Grey, the best selling novel written by E.L. James. The Hollywood Reporter has released a story stating that Universal pictures has recently filed a lawsuit against Smash Pictures and director James Lane, who have recently finished producing Fifty Shades of Grey: A XXX Adaptation. Luv Moves a distribution company that packaged and allocated DVD’s of the porn parody has also been targeted in the lawsuit. Universal Picture’s and Fifty Shades Ltd. are requesting an injunction and further monetary damage. [20]

December

December 4th 2012

Universal Picture’s Les Miserables, is one of the most highly anticipated films of 2012. Set to be released on Christmas day, the musical starring Hugh Jackman, Russell Crowe, and Anne Hathawayis due for a strong opening weekend and perhaps some

Les Miserables [21]

recognition from the academy. The Sacramento Bee has reported an announcement from Universal Pictures, stating that the film will be “digitally remastered into the immersive IMAX format” and released in IMAX theaters worldwide. The film will be released in IMAX theaters in New York, Los Angeles, Toronto, and Montreal on December 25th. Those abroad will have to wait until January 10th for the film’s IMAX release. Greg Foster, the President of IMAX entertainment, stated that Les Miserables “lends itself perfectly to the IMAX Experience”. The IMAX release of Les Miserables is sure to amplify the buzz surrounding the movie and its premiere. The second format option and increase in screens may lead to a tremendous financial success. [22]

Future

The upcoming winter and remainder of 2012 appears to be promising for Universal Pictures. On December 21st 2012, This is 40, a film written and directed by Judd Apatow, will be widely released in North America. The highly anticipated Les Miserables, will premiere on Christmas day and the Osama Bin Laden murder thriller, Zero Dark Thirty, will be released two and a half weeks later. A fitting end to a record-setting year seems to be in store for Universal Pictures.

Sources:

[1] Universal Pictures’ Twitter Account; https://twitter.com/UniversalEnt

[2] Box Office Mojo; 2012; http://www.boxofficemojo.com/yearly/chart/?yr=2012&p=.htm

[3] U.S. History: Universal Studios; http://www.u-s-history.com/pages/h3086.html

[4] Silent Hollywood; http://silenthollywood.com/carllaemmle.html

[5] Bloomberg Business Week; http://investing.businessweek.com/research/stocks/private/person.asp?personId=2144227&privcapId=2092219&previousCapId=804881&previousTitle=Universal%20Studios,%20Inc.

[6] IMBD; James Schamus; http://www.imdb.com/name/nm0770005/

[7] NBC Universal Website; Executives; Jimmy Horowitz; http://www.nbcuni.com/corporate/management/executive/universal-pictures/jimmy-horowitz/

[8] NBC Universal Website; Executives; Cindy Gardner http://www.nbcuni.com/corporate/management/communication-lead/universal-pictures/cindy-gardner/

[9] NBC Universal Website; Executives; Adam Fogelson http://www.nbcuni.com/corporate/management/senior-corporate-executives/universal-pictures/adam-fogelson/

[10] NBC Universal Website; Executives; Rick Finkelstein http://www.nbcuni.com/corporate/management/executive/universal-pictures/rick-finkelstein/

[11] PR Newswire; The Street; http://www.thestreet.com/story/11689878/1/universal-pictures-to-release-pitch-perfect-in-select-theaters-on-friday-september-28-2012.html