E.W. Scripps Co., former owner of the Rocky Mountain News, will return to Denver with the purchase of KMGH-Channel 7.
Scripps has agreed to purchase 7News and the rest of the McGraw-Hill broadcast group for $212 million.
“We’re eager to be in Denver,” Scripps President and CEO Rich Boehne said by phone. “Obviously it’s a market we know really well, a market where we love being in the news business.”
Regarding KMGH, Boehne said, “They have a good reputation, especially their investigative reporting team. It seemed like a very good news culture.
The acquisition of the McGraw-Hill stations — which includes ABC affiliates in Denver, Indianapolis, San Diego and Bakersfield — will extend Scripps’ relationship with that network. The company already has six ABC affiliates; with 10 ABC affiliates among its 19 stations, Scripps will become the country’s largest independent operator of ABC stations.
The five other stations involved in the transaction — KZSD in San Diego, KZKC in Bakersfield, KZCO in Denver, KZFC in Ft. Collins, Colo., and KZCS in Colorado Springs, Colo. — are low-power stations affiliated with the Spanish-language network, Azteca America.
The sale must undergo the usual regulatory hurdles before being finalized, likely by early 2012.
In announcing the deal, Boehne cited the Spanish-language assets, the attractive price and low interest rates, and the “high-quality news and information content” of the stations to be acquired.
“This is a terrific opportunity to enter some of America’s most dynamic media markets and tap into the growing Spanish-language marketplace at a very attractive price,” Boehne said in a statement. “The McGraw-Hill stations fit well with our strategy to create economic value through high-quality news and information content that serves both consumers and advertisers through linear television and the exploding array of digital communication devices.
“These stations came up for sale at a good time for Scripps,” Boehne said. “The deal is structured and financed in ways to protect the company’s financial flexibility and our ability to continue investing in emerging media business models. Through this acquisition, we now have the opportunity to extend our local news strategies into markets with big appetites for community-changing journalism.”
Channel 7 newsroom staffers were surprised and elated at the news.
“This is fantastic. Scripps has a deep commitment to broadcasting,” 7News Director Jeff Harris said. “Their latest initiative is a renewed commitment to investigative (reporting) throughout their station groups.”
On a conference call with financial analysts, Scripps executives acknowledged the loss of Oprah Winfrey on the ABC stations had been taken into account in figuring the purchase price.
The nine McGraw-Hill stations reach approximately 3 percent of U.S. households and generated revenue in 2010 of $97 million.
Among the unknowns at this time is the likelihood of a change in call letters (KMGH refers to McGraw-Hill).
In a prepared statement, Harold McGraw III, chief executive officer of the seller, said: “I am proud of the contributions the Broadcasting Group has made during its rich history with McGraw-Hill. Scripps is a respected media company that will provide an excellent new home for our broadcasting stations and allow them to deepen their ties and value in the markets they serve.”
Joanne Ostrow: 303-954-1830 or jostrow@denverpost.com
