Press Contact: Barry Faber, EVP
Investor Contacts: Christopher Ripley, CFO
Lucy Rutishauser, SVP & Treasurer
SINCLAIR TO ACQUIRE TENNIS CHANNEL;
COMPANY TO HOST CONFERENCE CALL ON JANUARY 28, 2016
Baltimore, MD (January 27, 2016) – Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) (the “Company” or “Sinclair”) announced that it has entered into a definitive agreement to purchase the stock of Tennis Channel (“Tennis”) for $350 million. The Company will benefit, however, from over $200 million of Tennis net operating losses which Sinclair will be able to carry forward to reduce future tax payments, the present value which Sinclair estimates to be worth approximately $65 million. Tennis Channel is the only 24-hour, television-based multimedia destination dedicated to both the professional sport and tennis lifestyle. Tennis, which includes established over-the-top subscription services, TC Plus and TV Everywhere, has rights to 90% of all the televised tennis in the U.S. and features comprehensive coverage including the top 100 tournaments in the sport and more. The Company has already negotiated agreements with a number of multi-channel video programming distributors (MVPDs) which, following Sinclair’s acquisition, will increase carriage of Tennis from approximately 30 million homes to approximately 50 million homes. The transaction, which is subject to antitrust regulatory approval and other customary closing conditions, is expected to close during the first quarter of 2016 and will be funded through cash on hand and a draw on the Company’s revolving line of credit.
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