Cox Enterprise and Apollo Global Management came to an agreement on Cox Media Group’s broadcast TV stations and newspapers, announced Cox on Friday.
Majority of the stakes in Cox Media will be sold to fund managed by Apollo Management, and Cox Enterprise will be left with a minority stake in its media unit.
The deal will also include the selling of majority stakes in Cox’s radio stations and newspapers in Ohio to Apollo Fund.
The Cox media, which involves 13 TV stations broadcasting across cities including Boston, North Carolina, Charlotte, Seattle and Atlanata with a combined reach to 31 million viewers, will be run by both Apollo and Cox by forming a new company which should be headquartered at Atlanta, according to the press release.
As the broadcast industry is transforming rapidly by consolidations and taking on pay-TV services who already remained paying the retransmission fees to broadcasters for the rights to carry their stations.
Earlier in July last year, Cox, for its broadcast unit, was exploring strategic options which could also include partnerships with or merger of that segment into a larger company, said the company at the time.
Stepping forward, intentions to sell 14 of its TV stations was unveiled by the Cox in late last year, to which Cox without naming them said that some 11 bidders showed their interest in the stations.
Hearst, TENGA and EW Scripps were planning to take part into the final bids prior to Cox’s deadline of January 30, reported CNBC citing people familiar with the matter.
Financial terms of agreement were not disclosed by any of the companies, but value of the same has been put at about $3 billion by the published reports. Also, the deal is subject to regulatory approval and could possibly take at least 6 months to be concluded.