Indiana firm
to buy KHON

Emmis Broadcasting agrees
to purchase the Fox affiliate

By Rick Daysog
Star-Bulletin

An Indianapolis-based media company will purchase KHON Fox 2 and three mainland television stations in a deal valued at $307 million.

Emmis Broadcasting Corp. today said it signed a definitive agreement with SF Broadcasting Co. to acquire WVUE-TV in New Orleans, WALA-TV in Mobile, Ala., WLUK-TV in Green Bay, Wis. and KHON, which is the state's top-rated news station. Emmis Broadcasting also will acquire KHON's affiliated company McHale Videofilm.

The acquisition, which is subject to regulatory approvals, is expected to close in four to six months. All four stations will remain Fox affiliates.

Emmis Broadcasting said it will pay $257 million in cash and another $50 million either in cash or Emmis Broadcasting stock for the four stations.

The deal is the Indianapolis company's first venture in the television business. The company owns and operates 13 radio stations nationwide and publishes four regional magazines: Texas Monthly, Atlanta, Indianapolis Monthly and Cincinnati Magazine.

Jeff Smulyan, Emmis Broadcasting's chief executive, said today the company won't make dramatic changes and plans to keep KHON's news team intact. KHON and McHale Videofilm, a TV production firm, have about 115 employees.

Smulyan said Emmis Broadcasting is committed to acquiring new offices for KHON. KHON wants to movefrom its Kakaako site and upgrade to all-digital format at a cost of up to $18 million.

The deal is the local station's fifth ownership change since 1995. SF Broadcasting is controlled by media mogul Barry Diller's USA Networks Inc.