CBS Corp. Acquires TV Station in New York to Create Market Duopoly
“Our acquisition of WLNY-TV presents a tremendous opportunity for our TV stations division,” said Peter Dunn, president, CBS Television Stations.
NEW YORK - CBS Corp.'s CBS Television Stations unit said Monday that it has signed a definitive agreement to acquire independent New York TV station WLNY-TV from WLNY Holdings, giving it a station duopoly in the nation's largest media market.
Financial terms of the deal for the station whose call letters stand for We Love New York were not disclosed. CBS also owns CBS 2 in New York.
This would be the company's10th station duopoly in addition to Los Angeles, Philadelphia, San Francisco, Boston and others.
“Our acquisition of WLNY-TV presents a tremendous opportunity for our TV stations division,” said Peter Dunn, president, CBS Television Stations. “The combined strengths of CBS 2 and WLNY-TV will give us a terrific platform for serving the entire New York area. Our plans for the station include adding people and resources to fuel a significant expansion of local news programming well beyond the nightly half-hour that currently airs. And, of course, in doing so we will continue to honor the station’s already deep commitment to serving the people of Long Island and the entire tri-state area."
According to BIA, WLNY-TV generated $3.8 million in revenue, less than 1 percent of total New York market revenue in 2010, Wells Fargo analyst Marci Ryvicker.
"In our opinion, pursuing a duopoly in NYC makes sense, and we view today's news as a positive for several reasons," she said. "First, a duopoly market tends to have higher margins than a single-station market. Second, there could be a lot of upside at this station, despite the fact that it is independent - both in terms of more news product (NYC is a very unique market where the value of local news is significant) as well as incremental retransmission consent. Third, this is a tuck-in acquisition; therefore we do not read today's news as a change in strategy at CBS."