Meredith Completes Acquisition Of KMOV-TV; Backs Outlook

(RTTNews) - Meredith Corp. (MDP) said Friday that it has completed its acquisition of the broadcast assets of KMOV-TV, the CBS affiliate in St. Louis, from Gannett Co., Inc. (GCI) and Sander Media LLC, for $177 million.

The deal will not have a material effect on Meredith's third quarter or full year fiscal 2014 financial performance.

Meredith said it continues to expect fiscal 2014 full year earnings per share to range from $2.60 to $2.95, and fiscal 2014 third quarter earnings per share to range from $0.63 to $0.68.

Analysts polled by Thomson Reuters currently expect the company to earn $0.67 per share for the third quarter and $2.70 per share for the fiscal year 2014.

On December 23, 2013, Meredith announced separate definitive agreements to acquire the broadcast assets of KMOV and of two television stations in Phoenix. Meredith expects to complete the acquisition of the Phoenix stations - KTVK - TV, an independent, and KASW - TV, the CW affiliate - by June 30, 2014.? The license and certain related assets of KASW will be purchased by a third party - SagamoreHill of Phoenix, LLC - and Meredith will provide certain services for the operation of KASW pursuant to a customary services agreement with SagamoreHill, in accordance with Federal Communications Commission local television ownership rules.

In the first full year post closing, all three television stations are expected to generate combined revenues of $105 to $115 million, and be accretive to run-rate earnings per share by $0.16 to $0.18.