Seeking to lower its debt load, ZGS Communications is selling its Philadelphia station to Telemundo for $19 million, according to a filed FCC application.
ZGS will make a $9 million profit from the sale. It bought the station from Hispanic Broadcasters of Philadelphia for $10 million just 5 years ago.
ZGS has issued the following statement on the sale:
“ZGS Communications has entered into a transaction to sell WWSI-TV to Telemundo Mid-Atlantic LLC, part of the NBCUniversal Media Group. ZGS acquired the station in 2008 and operated WWSI as a Telemundo affiliate for the past 5 years. We are delighted the station is staying in the Telemundo family. Philadelphia is a fantastic market and a great opportunity for Telemundo.
The sale of WWSI is an important move for the company to re-set the capital structure and to significantly strengthen its financial and operating capability. ZGS will use the proceeds from the transaction to repay most of its senior debt, to continue to invest in the enhancement and expansion of its current operations as well as to actively pursue future growth opportunities.”
The deal is pending approval, which the company expects will be in aproximately 3 months.
You failed to mention an important part to this story. The purchase of WWSI will give Comcast a duopoly in Philadelphia. It already owns NBC 10, WCAU.
No doubt owning and operating both stations will probably mean the Telemundo station will move into the NBC 10 facility and some of it’s jobs eliminated as the work is taken over by WCAU personnel. Anything to cut costs. The $19 million has to come from somewhre.
The same happened in L.A. The good, the bad and the ugly of duopolies.