Entravision Communications has signed a deal to buy KREN in Reno for $4 million. The deal also includes Spanish-language KAZR, currently a TuVisión affiliate, and six other low-power stations.
Pappas Telecasting built a high tech facility – fully HD, with Sony HD field gear – behind picture windows in a Reno mall so that people could watch the staff produce newscasts in two languages. But with the station group facing major financial difficulties, they shut down the Reno news operation in March. In May, Pappas filed for bankruptcy, facing more than $300 million in debt.
According to TVNewsday, Pappas’s assets will be auctioned in late October and should another entity outbid Entravision, it could choose to up the price it’s currently offering. But if another seller outbids Entravision or if the station is sold to another buyer, Entravision gets a $125,000 break-up fee plus expenses up to $75,000.
As part of the deal, Entravision would a maximum of $700,000 for equipment to convert the station to digital by the Feb. 18, 2009, deadline.