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CBS Sells WFRV-TV to Liberty

Feb 13, 2007  •  Post A Comment

CBS Corp.has agreed to sell WFRV-TV in Green Bay, Wis. station to Liberty Media Corp.

Liberty will exchange 7,591,249 CBS common shares and $170 million cash for a CBS subsidiary created for tax purposes related to the deal. That entity, which holds the Green Bay television station valued at $64 million, will let the split off be accomplished tax free. The price at which Liberty will exchange its CBS shares will be based upon the average trading price of CBS Class B shares during a specified period prior to the closing, according to the announcement of the deal Tuesday.

“This transaction represents another step in our transformation of Liberty into a focused operating company. We are continuing to convert passive investments into operating businesses,” Liberty Senior VP and Treasurer David Flowers said in the announcement. “We are impressed by the success achieved by the long-standing management team in Green Bay and look forward to welcoming them to the Liberty family.”

The transaction, which also continues CBS’ strategy of selling off TV stations in mid-size and small markets, is expected to be completed in the second quarter of 2007. Two weeks ago, CBS announced a deal to sell seven of its stations to Cerberus Capital Management.

Liberty Media’s varied holdings include interests in QVC and Expedia and Starz Entertainment.

(Editor: Baumann)