Corporate News Blog - Entravision to Buy NBC Affiliate KMIR-TV and MyNetworkTV Affiliate KPSE-LD
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MAIN, GERMANY / ACCESSWIRE / July 24, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Entravision Communications Corp. (NYSE: EVC), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=EVC. The Company announced on July 21, 2017, that it has signed an agreement with OTA Broadcasting (PSP), LLC to acquire Stations KMIR-TV, the NBC affiliate, and KPSE-LD, the MyNetworkTV affiliate, serving Palm Springs, California. The purchase price of the deal is $21 million. OTA broadcasting bought the above two stations in 2014 for $17 million. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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Entravision is a leading media company serving Latino audiences and communities, and OTA Broadcasting operates in the Radio Broadcasting Stations industry within the Communications sector.
Terms of the Transaction
The transaction is expected to close in Q4 2017, following prior approval from the Federal Communications Commission (FCC), and is subject to other customary closing conditions.
Entravision stated that including anticipated synergies, the transaction represents an attractive purchase price multiple of less than 6.5 times expected blended 2016-2017 pro-forma broadcast cash flow. The Company noted that the transaction is expected to be immediately free cash flow accretive and is also expected to be funded on a tax efficient basis with proceeds from the FCC broadcast incentive auction and treated as a like-kind exchange pursuant to Section 1031 of the Internal Revenue Code of 1986, as amended.
Acquisition will Help to Broaden Services in Palm Springs
Commenting on the acquisition, Walter F. Ulloa, Chairman and Chief Executive Officer of Entravision, said:
"Palm Springs is a growing and vibrant market that we know very well and have served for more than 20 years. Our existing television and radio assets located in the market have helped us build strong relationships with the Palm Springs community and our local news programming, Noticias Ya, is highly rated. We are excited to add KMIR's impactful and significant local news presence to our portfolio in Palm Springs. This is a strategic transaction that is extremely attractive on a financial basis, allowing us to broaden the services we provide the Palm Springs market and positions us to continue to build on the success of KMIR and KPSE."
Bill Tolpegin, OTA Broadcasting's Chief Executive Officer, stated:
"We are grateful for the hard work and dedication of KMIR's terrific employees during our ownership of the station. We are confident that Entravision will be a great new home for the station and its team, and look forward to following their continued success."
Acquisition of Headway in March 2017
On March 03, 2017, Entravision Communications Corporation announced that it has entered into an agreement to acquire the business of Headway, a leading provider of mobile, programmatic, data and performance digital marketing solutions primarily in the US, Mexico, and Latin America. The addition of Headway enabled Entravision to enhance the digital capabilities the Company offers to its advertising and marketing partners and its ability to target audiences and consumers.
About Entravision Communications Corp.
Entravision Communications Corporation is a leading media company that reaches and engages US Latinos across acculturation levels and media channels as well as consumers in Mexico. The Company's comprehensive portfolio incorporates integrated media and marketing solutions comprised of acclaimed television, radio, digital properties, events, and data analytics services. Entravision has 56 primary television stations and is the largest affiliate group of both the Univision and UniMás television networks. The Company is headquartered in Santa Monica, United States.
About OTA Broadcasting (PSP), LLC
Founded in 2011, OTA Broadcasting own and operate independent television stations in large markets throughout the United States. The Company is owned by Management and Torchlight TV Investments, LLC, an affiliate of MSD Partners, L.P.
Last Close Stock Review
On Friday, July 21, 2017, the stock closed the trading session at $6.85, marginally climbing 0.74% from its previous closing price of $6.80. A total volume of 295.74 thousand shares have exchanged hands. Entravision Communications' stock price soared 7.87% in the last one month, 11.38% in the past three months, and 34.31% in the previous six months. The stock is trading at a PE ratio of 30.18 and has a dividend yield of 1.75%. The stock currently has a market cap of $550.74 million.
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