Frager Factor

Sunday, December 08, 2013

Proof That A $2.3 Billion Domain Deal Is Something We'll Hearing About In Five Years as Common As The Million Dollars Sales Are Now

Take the example of Tribune which, with FCC approval, is about to close a deal to acquire 19 o the premium local market television stations for $2.73 billion. They are buying them from Local TV not LocalTV.com or Local.TV but LocalTVllc.com a Oak Hill Partners leverage deal that acquired, bundled and added value to assets making the total is greater than the sum of the parts and attractive for acquisition.

Their website boasts: "Local TV owns and/or operates 21 TV stations in 16 US cities.
Including many FOX affiliates, they’re really good stations so stick around and learn some more about ‘em!"

I argue that this is about control of local media, markets, messages and sponsor and since all domains are capable of being broadcast stations I can see where a VC would acquire and bundle Castellos, Mercaldo, Pape, and others (scroll down to "hall of fame"), in a deal that would be in the billions simply by switching on the local TV networks content to the acquired domains and offering buying leverage to advertisers. Imagine how a FOX affiliate could populate any city .com!

Then imagine the press release would read like the one below “This is a transformational acquisition for Tribune — it makes us the No. 1 local TV affiliate group in America, expands the distribution platform for our high-quality video content, and extends the reach of our digital products to new audiences across the country. Tribune Co. said it expects the deal to boost its profits immediately and result in more than $100 million in annual cost savings within five years." 

Here is the original press release from July in the Miami Herald about the deal. 
CHICAGO -- Tribune Co. said Monday that it reached a deal to buy Local TV Holdings LLC’s 19 TV stations for $2.73 billion in cash, significantly boosting its television business as it looks to sell its newspaper operations. 
Tribune currently owns 23 TV stations and cable network WGN America, along with the Chicago Tribune, Los Angeles Times, Sun Sentinel, Orlando Sentinel and other newspapers. It says the deal will make it the country’s largest commercial TV station owner with 42 stations. 
Tribune Co. said it expects the deal to boost its profits immediately and result in more than $100 million in annual cost savings within five years. Local TV’s holdings include stations in Denver, Cleveland, St. Louis and other major cities. 
Meanwhile, the Chicago company said the increased scale will help it maximize its national and local advertising sales, while also giving it a larger footprint to distribute its video and digital content.
“This is a transformational acquisition for Tribune — it makes us the No. 1 local TV affiliate group in America, expands the distribution platform for our high-quality video content, and extends the reach of our digital products to new audiences across the country,” Tribune Co. President and CEO Peter Liguori said in a statement.
They didn't buy .TV and they won't buy gTLD. It's the scarcity of the power of multiple dotcoms together that any one of them could ever hold alone. Thanks to gTLD the decision is easier than ever to swallow. 

Here's to the dreamers form the early 90s. Your ship is closer to shore than you ever imagined.

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About The Author: Owen Frager is an Internet marketing expert ready to help take your company to the next level.

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