Amends Existing Purchase and Sale Agreements
NEW YORK, Feb. 15 /PRNewswire-FirstCall/ -- Granite Broadcasting
Corporation (OTC Bulletin Board: GBTVK) announced today amendments to each of
its agreements with wholly-owned subsidiaries of AM Media Holdings, LLC, ("AM
Media") relating to the sale of Granite's WB-affiliated television stations,
KBWB, Channel 20 in San Francisco, California and WDWB, Channel 20 in Detroit,
Michigan. The amendments eliminate the exclusivity, or "no-shop," clause in
each agreement, thereby freeing the Company to engage in dialogue with other
parties interested in acquiring the stations while AM Media continues to
evaluate its interest in the transactions in light of the recent announcement
by the WB Network that it will cease operations in September 2006. In
addition, the amendments allow either party to terminate the agreements at any
time.
Commenting on today's announcement, W. Don Cornwell, Chief Executive
Officer of Granite Broadcasting Corporation, said, "The recent announcement by
the WB Network has led AM Media to decide not to proceed forward with the
transactions as originally contemplated. As AM Media continues to evaluate
its interest in these stations, these amendments give us the ability to
actively engage in dialogue with other interested parties. While it is our
intention to sell the stations, we are prepared to operate them as
independents in September."
Granite Broadcasting Corporation owns and operates, or provides
programming, sales and other services to 20 channels in the following 8
markets: San Francisco, California; Detroit, Michigan; Buffalo, New York;
Fresno, California; Syracuse, New York; Fort Wayne, Indiana; Peoria, Illinois;
and Duluth, Minnesota-Superior, Wisconsin. The Company's channel group
includes affiliates of the NBC, CBS, ABC, WB and UPN networks, and reaches
approximately 6% of all U.S. television households.
This press release and related statements by management contain forward-
looking statements, which represent the Company's expectations or beliefs
concerning future events. Forward-looking statements include information
preceded by, followed by, or that includes the words "believe," "expect,"
"anticipate," "intend," "plan," "foresee," "likely," "will," "should" or other
similar words or phrases. While we believe these judgments are reasonable,
the Company cautions that these statements are qualified by important factors
that could cause actual results to differ materially from those in the
forward-looking statements. Such factors include, without limitation, failure
to sell the Company's WB affiliates, the ability to operate the WB affiliates
as independents, the ability to generate sufficient cash flows, general
economic conditions, competition in the markets in which the Company's
stations are located, technological change, pricing fluctuations in national
and local advertising, innovation in the broadcasting industry, geopolitical
factors and changes in laws, regulations and tax rates. Consequently, all
forward-looking statements made herein are qualified by these cautionary
statements and the cautionary language set forth in the Company's most recent
Annual Report on Form 10K filed with the Securities and Exchange Commission
("SEC"), which may be revised or supplemented in subsequent reports on SEC
Forms 10-Q and 8-K. There can be no assurance that the actual results, events
or developments referenced herein will occur or be realized. The Company
assumes no obligation to update these forward-looking statements to reflect
actual results, changes in assumptions or changes in factors affecting such
forward-looking statements.
SOURCE Granite Broadcasting Corporation
 back to top
Related links:
http://www.granitetv.com
CONTACT:
Press: W. Don Cornwell, Analyst: Larry
Wills, both for Granite Broadcasting Corporation, +1-212-826-2530
|
