SANTA ANA, Calif., June 4, 2010 (GLOBE NEWSWIRE) -- ACME Communications, Inc. (Pink Sheets:ACME) today announced that the Company and LIN TV Corp. ("LIN Media") (NYSE:TVL) have entered into shared services and related agreements for ACME's television stations KWBQ-TV and KASY-TV in Albuquerque-Santa Fe, NM; WBDT-TV in Dayton, OH; and WIWB-TV in Green Bay-Appleton, WI.
Under the terms of the agreements, LIN Media will provide technical, engineering, promotional, administrative and other operational support services from its stations KRQE-TV and KASA-TV in the Albuquerque-Santa Fe market, WDTN-TV in the Dayton market, and WLUK-TV in the Green Bay-Appleton market. In addition, LIN Media will provide advertising sales services under a joint sales agreement for the ACME stations in the Dayton and Green Bay-Appleton markets. The agreements are expected to provide operating synergies and expense savings to both parties in each of the markets.
In making the announcement, Doug Gealy, President and Chief Operating Officer of ACME said, "This transaction reflects our commitment to maximizing the value of our stations to the benefit of our shareholders. This alliance will allow us to substantially reduce our operating costs and potentially extract new revenues while strengthening our ability to serve our audiences in each of these markets. We see this transaction as a model for our other two stations in Knoxville and Madison and intend to pursue separate but similar opportunities in those markets."
Vincent L. Sadusky, President and Chief Executive Officer of LIN Media, added, "This arrangement leverages LIN Media's core strengths in operating leading local multimedia platforms and allows both parties to enjoy the benefits of greater economies of scale."
The shared services and joint sales agreements have three year terms and are expected to commence on or about July 1, 2010. In addition, the companies have entered into a concurrent option agreement giving LIN Media the option to acquire any or all of the stations. ACME has the right, starting in the 31st month of the term, to put any or all of the stations to LIN Media. Both LIN's option and ACME's put rights are subject to regulatory approvals and certain other terms and conditions.
The LIN Media transaction and the recently announced licensing and consulting agreement with Fisher Communications ("Fisher") (Nasdaq:FSCI) regarding ACME's subsidiary, The Daily Buzz, LLC – which also included an option agreement for Fisher to acquire an interest in The Daily Buzz - reflects the Company's continued focus on reducing costs to further improve its operating outlook, while seeking the most beneficial sale options for its assets.
The Company will hold a conference call at 1:30 p.m. Eastern Time on Friday, June 4, 2010 to further discuss the transaction with its shareholders. To access the conference call, please dial 888-562-3356 no sooner than ten minutes prior to the start time and reference passcode 80233652. The conference call will also be available via live webcast on the Company's Web site, www.acmecommunications.com, and will be available for replay on our site until Friday, June 18, 2010.
Safe Harbor
This press release includes statements that constitute "forward-looking statements," including statements regarding our future plans and strategies, growth opportunities, and our future prospects. Forward-looking statements inherently involve risks and uncertainties, including, among other factors, general economic conditions, demand for advertising, risks associated with the integration of acquired businesses, competition for audience and programming, government regulations and new technologies, that could cause our actual results to differ materially from the forward-looking statements. Factors that could contribute to such differences include the risks detailed in our periodic reports filed on the Company's Web site. By making these forward-looking statements, we undertake no obligation to update these statements for revisions or changes after the date of this press release.
About ACME Communications, Inc.
ACME Communications, Inc. owns and operates six television stations serving markets covering 2.2% of the nation's television households. The Company's stations are: KWBQ-TV and KASY-TV, Albuquerque-Santa Fe, NM; WBXX-TV, Knoxville, TN; WBDT-TV, Dayton, OH; WIWB-TV, Green Bay-Appleton, WI and WBUW-TV, Madison, WI. All of the Company's stations, except KASY-TV, a MyNetworkTV affiliate, are affiliates of The CW Network. The Company also produces The Daily Buzz, a nationally syndicated morning news program which airs on 161 television stations across the country. The Company's shares are traded over-the-counter under the symbol: ACME.PK.
About LIN Media
LIN Media, along with its subsidiaries, is a local multimedia company that owns and/or operates 28 network-affiliated broadcast television stations and interactive television station and niche web sites in 17 U.S. markets. LIN Media's online advertising business, RMM, leverages unique technology, new product innovation and customized interactive and mobile advertising solutions to deliver measurable results to local, regional and national clients.
LIN TV Corp. is traded on the New York Stock Exchange under the symbol "TVL". Financial information about the company is available at www.linmedia.com.