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Subsidiaries of Apollo Global Management will acquire a majority stake in Cox Media Group's broadcast television channels, Cox announced on Friday.
Cox Enterprises will always retain a minority interest. Apollo and Cox will form a new Atlanta-based company to operate the stations, according to the press release, and Apollo Funds will also acquire a majority stake in Cox's radio and newspaper properties in Ohio.
Cox television channels, which cover cities like Atlanta, Charlotte, North Carolina, Seattle and Boston, reach a total of 31 million viewers across the country, according to the company. Last year, Cox announced that it wanted to sell its 14 television stations, with the broadcasting industry continuing to regroup and use pay TV providers, who pay fees. broadcasters for the right to broadcast their stations.
CNBC had previously announced that TEGNA, Hearst and EW Scripps were planning to submit their final offers for the television channels by Cox's deadline late last month, according to people close to the case. Nexstar was also interested in an offer before retiring from the race after announcing a $ 4.1 billion deal for Tribune in December.
Alex Sherman from CNBC contributed to this report.
Cox Enterprises Inc. announced today that it has entered into an agreement with funds (the "Apollo Funds") managed by affiliates of Apollo Global Management, LLC (and its consolidated subsidiaries, "Apollo") (NYSE: APO), aimed at acquiring a controlling interest interest in the Cox Media Group's broadcast television stations, including the company's radio, newspaper and television stations in Ohio. Cox Enterprises will retain a minority stake and join Apollo funds to form a new company to operate these stations, based in Atlanta, Georgia.
Cox Media Group's high-performance television stations serve some of the country's most sought-after markets and reach a total of 31 million viewers across the country. Highly focused on investigative journalism, these television channels are leaders in the news and local newspapers and cornerstones of the communities they serve. The stations, which represent the entire television portfolio of the Cox Media Group, are as follows:
WSB-TV, ABC Atlanta, Ga.
WFTV-TV, ABC Orlando, Florida.
WRDQ-TV, Independent Orlando, Florida.
WSOC-TV, ABC Charlotte, N.C.
WAXN-TV, independent Charlotte, N.C.
WPXI-TV, NBC Pittsburgh, Pa.
WHIO-TV, CBS Dayton, Ohio
KIRO-TV, CBS Seattle, Wash.
WHBQ-TV FOX, Memphis, Tenn.
WFOX-TV, FOX Jacksonville, Fla.
WFXT-TV, FOX Boston, Mbad.
KOKI-TV, FOX Tulsa, Okla.
KMYT-TV, My Tulsa Okla Network.
Cox Media Group also provides planning, sales and other operations to WJAX-TV, CBS Jacksonville, Florida.
In addition to WHIO-TV, Apollo funds will acquire a majority stake in other Cox Media Group media platforms in Ohio:
Dayton Daily News
WZLR, 95.3 FM and 101.1 FM
Springfield News-Sun
WHKO, 99.1 FM
Journal-News
WHIO, 95.7 FM and 1290 AM
Cox Enterprises began exploring strategic alternatives for the resorts last July with the goal of finding a motivated strategic partner with a shared vision of the future and the resources needed to continue investing in the company to take of magnitude. Apollo intends to maintain the effective management and operating structure created by the Cox Media Group's television operations.
"These stations have decades of experience in removing barriers and in disseminating the information and information that their communities need on a daily basis," said Alex Taylor, President and CEO of Cox Enterprises. "We wanted to find a determined company to invest in audiovisual television, now and in the future, and we found it in Apollo."
"We are extremely pleased that our funds are acquiring a majority interest in Cox Media's broadcast television stations, and we are delighted with Cox Enterprises' decision to entrust us with the management of these stations and to perpetuate Cox's legacy. "We enjoy admiration for the journalistic integrity, quality of information and commitment to the community of Cox Media Group's broadcast stations," said David Sambur, Senior Partner at Apollo. "We look forward, together with Cox Enterprises, to meeting the high standards that each station faces and to contributing to the future growth and prosperity of the platform."
The transaction is subject to normal regulatory revisions and closing conditions.
Barclays PLC, Moelis & Company LLC and BDT & Company, LLC acted as financial advisors and Eversheds Sutherland LLP and Covington & Burling LLP acted as counsel to Cox Enterprises in this transaction.
RBC Capital Markets LLC, Guggenheim Partners LLC and LionTree Advisors, LLC acted as financial advisors and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Greenberg Traurig, LLP acted as counsel to the Apollo Funds in this transaction.
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