NewsChannel 5 sale spiked

Credit crunch sidelines New York buyer

Email | Print By Geert De Lombaerde

The planned sale of NewsChannel 5 to a New York broadcasting company has been abandoned because of the turmoil in the credit markets.

Bonten Media Group said in July that it planned to acquire NewsChannel 5 from Virginia-based Landmark Communications for a price estimated at more than $200 million. But its financing package from Lehman Brothers fell through as the storied investment bank fell victim to the credit crunch and Bonten was unable to line up another source of funds.

NewsChannel 5 would have become Bonten’s biggest station. The company owns 16 others, primarily in smaller markets.

In announcing the deal’s annulment, Landmark President Decker Anstrom struck a tone that suggests Landmark – which sold The Weather Channel for $3.5 billion in July – is no longer looking to unload its Nashville station.

"We have tremendous confidence in Debbie Turner, President and General Manager, and the News Channel 5 team,” Anstrom said. “We look forward to continuing to operate and invest in the #1 television station in Nashville."

For the full release from Bonten, click here.