Sinclair Broadcast Group Inc. (Nasdaq: SBGI) is paying $120 million to buy a Las Vegas television station from Intermountain West.
The broadcasting giant will add KSNV.
The purchase price represents a 4.9 times multiple of the stations average 2012-2013 cash flow, including synergies. Sinclair already owns two other stations in Las Vegas KVCW and KVMY. To comply with regulatory requirements, Sinclair plans to sells the Federal Communications Commission (FCC) License and related assets to one of the three Las Vegas stations.
Sinclair, headquartered in Hunt Valley, Maryland, has made many acquisitions. In July 2013, the company agreed to buy eight television stations in the Washington, D.C., area for $985 million.
Other broadcasting companies have also been adding to their networks, because cable companies will pay to carry local broadcasts. In May, Gannett Co. Inc. (NYSE: GCI) agreed to buy six television stations in Texas for $215 million. In March, Media General Inc. agreed to buy LIN Media LLC for $1.6 billion to add local television stations.
For more, see "Broadcasting Stations Beckon Buyers."