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Media company
finalizes deal
for KGMB-9,
14 other stations

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By Rick Daysog
Star-Bulletin

The Indianapolis-based owner of KHON Fox 2 has completed its $559.5 million acquisition of KGMB-9 and 14 sister stations.

Emmis Communications Corp. yesterday completed its purchase of eight network-affiliated stations and seven satellite stations from Davenport, Iowa-based Lee Enterprises Inc.

Kate Healey, Emmis' director of media and investor relations, said the company has received a six-month waiver from the Federal Communications Commission to own both KGMB, the local CBS affiliate, and KHON, which is the local Fox station. FCC rules bar single ownership of two of the four largest stations in the same market, although station owners have petitioned the FCC to relax the rules.

Emmis currently is studying its options for KGMB, which include placing the station in trust or selling it to another buyer.

"Our hope would be to own both stations in some manner but whether that's possible has not been decided yet," Healey said.

The deal is not expect to have a significant impact on the daily operations of the local television stations, which employ about 100 people each.

In addition to KGMB, Emmis also acquired local satellite stations KGMD-9 in Hilo and KGMV-3 in Wailuku. On the mainland, Emmis purchased Lee's CBS affiliates in Oregon, New Mexico, Nebraska and Colorado; Lee-owned NBC stations in West Virginia and Kansas; and an ABC affiliate in Arizona.

With yesterday's deal, Emmis now owns 15 network-affiliated stations and 24 radio stations nationwide.

Lee, which has owned KGMB since 1977, sold the stations to focus on expanding its publishing and online business. Lee owns 23 daily newspapers and has a half interest in five others.