SANTA ANA, Calif., Sept. 2, 2010 (GLOBE NEWSWIRE) -- ACME Communications, Inc. (Pink Sheets:ACME) today announced that LIN Television Corporation d/b/a LIN Media ("LIN") has exercised its option to purchase certain assets used and useful in ACME's television stations WIWB serving the Green Bay-Appleton market and WBDT serving the Dayton market.
In connection with its exercise, and as permitted under the Option Agreement between ACME and LIN, LIN has assigned its rights to acquire certain assets of WBDT to WBDT Television, LLC ("WT"). The combined purchase price for the two stations is $11.5 million. LIN has the right to fund up to 50% of its portion of the combined purchase price via issuance of unregistered shares of its common stock.
It is expected that applications to assign the stations' FCC licenses to LIN and WT, respectively, will be filed with the Federal Communications Commission ("FCC") within the next three weeks and that a failing station waiver will be requested of the FCC in connection with the WIWB assignment. The Company expects that the assignments will be approved by the FCC by the end of 2010 or early 2011. As required under the Company's revolving credit agreement (the "Revolver"), upon closing of the sales, all borrowings under the Revolver will be repaid and the Revolver will be terminated.
Commenting on the transactions, Doug Gealy, ACME's President and CEO, said, "We are delighted that LIN has exercised its option for our Dayton and Green Bay stations. The proposed transactions conform with ACME's plans for the ultimate disposition of all its stations and will ultimately redound to the benefit of our shareholders. Upon the completion of these two transactions, and upon our sale of any LIN stock offered as part of the consideration, we plan to distribute any excess cash to our shareholders. In the meantime, we continue to pursue other opportunities to monetize our remaining assets."
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 and lifestyle program which airs on more than 150 television stations across the country. The Company's shares are traded over-the-counter under the symbol: ACME.PK.