Paramount Global has hired an investment bank to explore the sale of some television stations that the company considers to be non-core to its overall business moving forward, according to a report.
With the bank, Paramount is considering a plan to cut loose as many as 12 full-power TV stations and one-low power station in markets like New York City, Dallas, Tampa and Philadelphia, according to financial publication Bloomberg.
A source familiar with the matter confirmed Bloomberg’s reporting, telling The Desk on Monday that the company is exploring the sale of its full-time independent stations, even in markets where it does not own the CBS station. The source confirmed the following stations could be sold if Paramount moves forward with the plan:
- KCCW (Channel 12) in Minneapolis
- KMAX-TV (Channel 31) in Sacramento
- KPYX (Channel 44) in San Francisco
- KSTW (Channel 11) in Seattle
- KTXA (Channel 21) in Dallas
- WBFS (Channel 33) in Miami
- WBXI-CD (Channel 47, Start TV) in Indianapolis
- WKBD (Channel 50) in Detroit
- WLNY (Channel 55) in New York City
- WPKD (Channel 19) in Pittsburgh
- WPSG (Channel 57) in Philadelphia
- WSBK (Channel 38) in Boston
- WUPA (Channel 69) in Atlanta
KCAL (Channel 9) is not part of the portfolio of stations that are under consideration, the source said. That outlet is co-operated with KCBS (Channel 2), the CBS-owned station in Los Angeles, which recently modified its local newscast branding to adopt the KCAL identity.
Bloomberg reported the stations, if sold together, could fetch around $500 million to $1 billion, and are likely to draw interest from private equity firms and other broadcasters. Additionally, the source familiar with the matter told The Desk that Paramount is looking at different options to sell or otherwise offload its 50 percent stake in Start TV, a multicast network that is operated through a joint venture with Weigel Broadcasting. (A separate source disputed Paramount is thinking about parting with its stake in Start TV, but offered no further specifics; Weigel and Paramount also operate the broadcast network Dabl, which was not mentioned by either source.)
Paramount has not commented publicly on the matter.
Eight of the 13 stations that Paramount could put up for sale are former affiliates of the CW Network, which Paramount operates as a joint venture with Warner Bros Discovery until 2022, when Nexstar Media Group acquired 75 percent of the network. The following year, Paramount announced it was dropping the CW Network affiliation from its stations; in July, Paramount and Nexstar announced it was restoring the CW Network affiliation to WKBD in Detroit and would add Miami’s WBFS as an affiliate, starting in September.
The potential sale of Paramount’s independent and low-power stations comes as the company is weighing different bids by Skydance Media and former Warner Music chairman Edgar Bronfman, Jr. to acquire some or all of the company. Paramount’s board of directors approved Skydance’s takeover offer two months ago; Bronfman submitted his bid last week during a period in which Paramount agreed it would entertain offers from other parties.
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Editor’s note: An earlier version of this story reported Nexstar had acquired 80 percent of the CW Network in 2022. The broadcaster acquired 75 percent of the CW Network; Paramount and Warner Bros Discovery each retain an equal 12.5 percent stake. Additionally, an earlier list of TV stations omitted one in Pittsburgh, which a source confirmed is also a candidate for sale.
