Act III Communications to sell broadcasting company to ABRY Partners; deal to include eight television stations.LOS ANGELES--(BUSINESS WIRE)--June 21, 1995--Act III Communications has signed an agreement to sell Act III Broadcasting Act III Broadcasting was a company that owned several television stations that started as independents, and later became Fox affiliates. The stations were located in medium-sized markets, and the company existed from the mid 1980s to the mid 1990s, eventually to be sold to Abry in Inc. to ABRY Broadcast Partners II L.P. The transaction carries an aggregate valuation in excess of $500 million. The stock purchase is subject to approval by the Federal Communications Commission Federal Communications Commission (FCC), independent executive agency of the U.S. government established in 1934 to regulate interstate and foreign communications in the public interest. . Approval is anticipated in the fourth quarter of 1995. Boston-based ABRY Partners ABRY Partners is a private equity firm headquartered in Boston, Massachusetts that focuses on investments in media. Since 1989, the firm has completed over $18.0 billion of leveraged transactions and other private equity and mezzanine investments, representing investments in more manages America's largest buy-out fund specializing in the acquisition of television and broadcasting companies. Act III Broadcasting owns and operates eight Fox-affiliated television stations. Seven of the Act III stations are also affiliates of the United Paramount Network. These dual affiliated stations are: WUTV-TV (Buffalo, N.Y.), WRGT-TV (Dayton, Ohio Dayton is a city in southwestern Ohio, United States. It is the county seat and largest city of Montgomery County. As of the 2005 census estimate, the population of Dayton was 158,873. ), WRLH-TV (Richmond, Va.), WVAH-TV (Charleston-Huntington, W.V.), WNRW-TV (Greensboro, N.C.), WUHF-TV (Rochester, N.Y.) and WTAT-TV (Charleston, S.C.). The eighth station is WZTV-TV (Nashville, Tenn.). WNRW-TV (Greensboro, N.C.) is switching its primary affiliation to ABC ABC in full American Broadcasting Co. Major U.S. television network. It began when the expanding national radio network NBC split into the separate Red and Blue networks in 1928. in September. For the 12 months ending March 31, 1995, Act III Broadcasting recorded $30.6 million in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and $44.7 million of broadcast cash flow on net revenue of $93.8 million. "This transaction underscores the attractive valuations associated with the Fox network and the impact of the anticipated deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. of the broadcast industry," said Hal Gaba, chief executive officer of Act III Communications and of Act III Broadcasting. "We are particularly pleased that our stations and employees will come under the umbrella of one of the most outstanding teams in the broadcast industry." Act III Broadcasting is owned by Act III Communications, certain institutional investors and employees and directors. Act III Communications is a diversified media holding company founded by film and television producer Norman Lear, who serves as Act III chairman. Act III Communications also has interests in the motion picture exhibition industry, film and television production and other media and entertainment businesses. CONTACT: Act III Communications David Goldhill, 310/551-4098 or ABRY Broadcast Partners Royce Yudkoff, 617/859-2116 |
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