Broadcasting
Lorimar-Telepictures also held ownership interests in several television stations via predecessor Telepictures, mostly based in smaller markets and Puerto Rico.[12] The company made a failed $1 billion offer in 1985 for Multimedia, Inc., which owned eight television stations and fifteen radio stations.[13] On May 21, 1986, Lorimar-Telepictures agreed to purchase from private equity firm KKR WTVJ (channel 4) in Miami, along with Storer Communications stations WAGA-TV in Atlanta, WITI in Milwaukee, WJBK in Detroit, WJW-TV in Cleveland, WSBK-TV in Boston and KCST in San Diego, in a $1.85 billion group deal.[14] WTVJ, including the studio building and surrounding land, was itself sold for $405 million.[15] Also included was Storer's program production company, advertising sales division and Washington news bureau.[16] Lorimar-Telepictures also made purchase offers for WPGH-TV in Pittsburgh and WTTV in Bloomington–Indianapolis.[17]
By October 22, 1986, Lorimar-Telepictures requested to exclude WTVJ from the Storer deal[18] after learning that CBS, of which WTVJ was affiliated with, inquired with the owners of WCIX (channel 6) about a purchase, putting the valuation of WTVJ in peril and ultimately collapsing the entire deal.[19] Other financial market analysts argued that Lorimar grossly overpaid for WTVJ, as the $405 million price was nearly 21 times WTVJ's cash flow (typical station purchase prices were 10 to 14 times cash flow)[20] and made it difficult to cover interest serviced on $2 billion in high-yield bonds.[21][22] KKR sold WTVJ to NBC in January 1987,[23] ultimately initiating a complicated six-station affiliation swap
The purchase offer for WTTV failed to close, with the station instead being sold to Capitol Broadcasting Company. WPGH-TV, which was successfully purchased by Lorimar, was sold to Renaissance Broadcasting in 1987 and, eventually, to current owners Sinclair Broadcast Group in 1990.[26][27] KCPM, KSPR and KMID were sold to Goltrin Communications in 1988.[28]
