CBS Corp. said Wednesday it will sell seven of its owned television stations, including two in Utah, to Cerberus Capital Management for $185 million.
The stations included in the agreement are:
KUTV in Salt Lake City, a CBS affiliate, and its satellite station KUSG in St. George.
KEYE-TV in Austin, Texas, a CBS affiliate.
WLWC in Providence, R.I., a CW network affiliate.
WTVX in West Palm Beach, Fla., a CW affiliate.
Two Low Power Stations in the West Palm Beach area: WTCN-CA, a MyNetwork TV station, and WWHB-CA, a TV Azteca station.
"Our Utah viewers will see virtually no change in KUTV's news, programming or personnel as a result of this ownership transfer," David W. Phillips, KUTV general manager, said in a prepared statement. "It's truly an exciting time for us at the station. KUTV will transition from being one of the smallest operations in the owned station group to being the flagship station of a well-funded, imaginative and entrepreneurial group.
"I've enjoyed getting to know the Cerberus group and feel confident that their style and philosophies are a good fit with ours. I really look forward to the challenges and rewards ahead."
CBS spokeswoman Dana McClintock declined to comment on factors that made the Utah stations candidates for divestiture, or whether station profitability was a consideration. She said the sale didn't have anything to do with the number of stations CBS was allowed to own.
Peter Duda, spokesman for Cerberus, said the deal made good sense both for Cerberus and the affected stations.
"Cerberus specializes in providing both financial resources and operational expertise to help companies create value and realize long-term success," Duda said. "We certainly believe in the viability of local television and believe the stations are a good investment."
Cerberus Capital Management is a New York-based private investment firm. It currently does not have any other television stations in its portfolio.
However, Duda said, Cerberus "is an experienced investor in a variety of industries, including media and telecommunications, and has previously provided capital to TV stations, cable companies and telecommunications companies."
Specifics about Cerberus' plan for the stations was not disclosed.
Other Cerberus portfolio companies include ACE Aviation Holdings, the parent company of Air Canada; Mervyn's Inc.; and Sports Brands International, a company that controls about 20 companies that create, produce and develop sports clothing and footwear under the Fila and Ciesse brands.
The CBS Television Stations group currently consists of 39 stations, including 21 CBS, 11 The CW, three MyNetworkTV and four stations not affiliated with major networks.
E-MAIL: jnii@desnews.com