Another Broadcasting Company Files Bankruptcy
From Daily Variety:
Young Broadcasting, which seven years ago paid $820 million for San Francisco TV station KRON-TV, which remains the highest price ever paid for a single TV outlet, has filed for Chapter 11 bankruptcy protection in New York. The market value of KRON-TV plummeted when Young refused to consent to a number of demands by NBC and dropped its affiliation with the network. The station's ratings have never recovered, and Young had been struggling to meet interest payments on its heavy debt load from the acquisition. At the same time, its stock price has dropped to a few cents. Young also owns nine other stations in small-to-medium markets.
Young Broadcasting, which seven years ago paid $820 million for San Francisco TV station KRON-TV, which remains the highest price ever paid for a single TV outlet, has filed for Chapter 11 bankruptcy protection in New York. The market value of KRON-TV plummeted when Young refused to consent to a number of demands by NBC and dropped its affiliation with the network. The station's ratings have never recovered, and Young had been struggling to meet interest payments on its heavy debt load from the acquisition. At the same time, its stock price has dropped to a few cents. Young also owns nine other stations in small-to-medium markets.
Posted by TV Confidential at 2/16/2009 1:16 AM 
Categories: television industry publications,network programming
Categories: television industry publications,network programming
It isn't a surprise to read this after our local cable & internet service provider Charter Communications declared the same thing a few weeks ago. Chapter 11 is key in realizing it doesn't mean a complete shutdown though . . . only a basic reorganization. What that reorganization will consist of, remains to be seen though....hopefully not an overall increase in rates - who knows!
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is it any wonder that a company that so thoroughly over-paid for KRON-TV with absolutely no plan for how to recoup that money, much less make a profit, had to file Chapter 11. Even if they didn't owe a dime, they have no identity for the station. Hire me as GM and I'll turn it around, making a profit, within a year.
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