Market’s Top Affiliate Sold to Tribune Co.

Local CBS affiliate KFSM-TV, Channel 5, of Fort Smith is one of 19 television stations that will be sold to the Chicago-based media titan Tribune Co., in a cash deal worth $2.73 billion.

Tribune and the seller, Local TV Holdings LLC of Ohio, announced July 1 a definitive agreement has been reached for the acquisition.

Oak Hill Capital Partners is the principal owner of Local TV Holdings.

Also involved in the deal is independently affiliated KXNW-TV, Channel 34. KXNW is licensed to Eureka Springs, but the station is assigned to the Fort Smith-Fayetteville-Springdale-Rogers DMA for Nielsen ratings purposes.

When the deal is closed, expected by the end of the year, the purchase will make the two local stations part of the country’s largest commercial television station company, with 42 stations across the country.

According to a news release, Tribune said it would finance the purchase with a combination of cash on hand and debt financing.

Tribune has received committed financing of up to $4.1 billion from JPMorgan Chase, Bank of America/ Merrill Lynch, Citigroup, Deutsche Bank and Credit Suisse, including a new $300 million revolving credit facility and the capacity to allow Tribune to refinance its existing debt.

KFSM, which will celebrate its 60th anniversary July 22, is the most-watched television station in the Northwest Arkansas market. In the May Nielsen ratings, KFSM had an in-market share of local viewing of 44 percent. The next best television station had 26 percent.

Also in the May Nielsen ratings, KFSM’s 6 p.m. newscast was watched by 52 percent of local television viewers. The closest competitor had 23 percent of viewers among all locally broadcast stations.