CBS and Sinclair Sign Deal to Renew Affiliation Agreements

Friday, Jul 10, 2015

CBS Corporation and Sinclair Broadcast Group, Inc. (NASDAQ: SBGI) have announced a comprehensive deal that renews station affiliation agreements for 16 markets nationwide. The markets renewed cover six percent of the U.S. and serve approximately seven million households.

"Sinclair is an important and valued local broadcasting partner," said Ray Hopkins, President, Television Networks Distribution, CBS Corporation. "We are pleased to enter another affiliation agreement with them, and in so doing, realize the full value for the programing we will provide to their stations."

Sinclair's Executive Vice President and General Counsel, Barry Faber, who oversees both Sinclair's relationships with its networks as well as with the multichannel video program distributors (MVPDs) who retransmit Sinclair's television stations, stated, "As one of the largest CBS station groups in the country, we are pleased to continue our relationship with the CBS Television Network, a provider of some of the most popular entertainment and sports programming. The long-term renewed agreements include all of our CBS affiliations expiring in 2015, as well as an early renewal of all agreements expiring in 2016, with terms that reflect the symbiotic relationship between us and our network partner, ensuring our interests are fully aligned. In addition, the new deal provides us visibility on our network programming costs, and therefore positions us to appropriately price our retransmission consent rights in our negotiations with MVPDs as we move towards fully realizing the value of the programming offered by our stations."

The agreement includes renewals for 15 Sinclair-owned CBS affiliates: WRGB in Albany-Schenectady, N.Y.; KBAK-TV in Bakersfield, Calif.; KFDM in Beaumont, Texas; KBOI in Boise, Idaho; WKRC in Cincinnati, Ohio; KRCG in Columbia-Jefferson City, Mo.; KDBC in El Paso, Texas; KVAL in Eugene, Ore.*; WWMT in Grand Rapids-Kalamazoo, Mich.; WHP in Harrisburg, Pa.; KTVL in Medford, Ore.; KTVO in Ottumwa, Iowa-Kirksville, Mo.; KHQA in Quincy, Ill.-Hannibal, Mo.; WPEC in West Palm Beach, Fla.; and KIMA-TV** in Yakima, Wash. CBS has also renewed its affiliation with KMEG in Sioux City, Iowa, a station to which Sinclair provides sales and other services.