Television network NBC has forged a deal to acquire San Jose’s KNTV, confirming months of speculation.
NBC will pay KNTV’s owner, Granite Broadcasting, $230 million in cash, in return for the network’s fourteenth owned-and-operated affiliate.
Last year, Granite struck a deal to pay NBC $365m-plus over the next ten years to be its affiliate in the Bay Area, a fee which will no longer apply under the new deal. Granite will use the proceeds from the sale to service its debt.
KNTV launches as an NBC affiliate on January 1, handing the network a duopoly in America’s fifth largest TV market with KSTS, owned by Telemundo (which NBC is in the process of buying).
News source: MediaWeek.com (US)