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Young Broadcasting Chairman Vincent Young has approached NBC about buying KRON-TV in San Francisco from him, sources say. Mr. Young declined to discuss the potential sale of his TV stations during an earnings call with analysts last week.
Mr. Young would like NBC to essentially match the $800 million he paid more than a year ago for the station, whose valuable NBC affiliation expires Jan. 1 because Young Broadcasting refuses to pay NBC reverse compensation. NBC, which has pursued KRON for years, wants to pay around $400 million, valuing the station as an independent.
NBC and Young are continuing their talks as Young scrambles to issue additional bonds and renegotiate with its bank lenders to ease covenant restrictions and pay off its $2 billion debt. A deal could involve cash from NBC and a swap of several of its smaller TV stations, sources say. NBC declines comment.
Although KRON is worth more with its NBC affiliation intact, Mr. Young says he is prepared with alternative programming, new promotions and a new station "look" if its independent conversion occurs as planned.
NBC could strike an eleventh-hour deal to acquire KRON and save its affiliation, while at the same time maintaining its promised new affiliation at Granite Broadcasting Corp.'s San Jose, Calif., station, KBWB-TV. Although both companies decline comment, sources say Granite is talking to NBC about ways the network could exercise its option to acquire Granite stock to give the smaller broadcaster some financial breathing room....
