Hearst-Argyle to go Private
Source: Hollywood Reporter Shares of Hearst-Argyle Television Inc. jumped 23.3% after controlling shareholder and media firm Hearst Corp. said it will take the TV station group private for about $600 million in cash in the latest buyout deal in the media and entertainment industry.
The privately held owner of newspaper, magazine and TV assets cited the changing media landscape as a key reason behind the move.
"The competitive demands of the TV broadcasting industry and changes in the broader media industry, when balanced against the pressures on a public company to deliver short-term results, have convinced us that private ownership of Hearst-Argyle is desirable and will assist Hearst-Argyle in attaining its strategic and business objectives," Hearst Corp. president and CEO Victor Ganzi said in a letter to the Hearst-Argyle board.
Hearst-Argyle owns 29 TV stations, which reach a combined 18% of U.S. viewers.