ACME Communications Announces Agreement to Sell KUWB-TV In Salt Lake City to Clear Channel Communications
SANTA ANA, Calif., Aug. 8, 2005 -- ACME Communications, Inc. (Nasdaq:ACME) announced today it has signed a definitive agreement to sell KUWB-TV in Salt Lake City, Utah to Clear Channel Communications for $18.5 million in cash. The sale is expected to close in the fourth quarter of 2005, pending FCC approval. In conjunction with this transaction, ACME and Clear Channel have signed a shared services agreement whereby the two companies will co-manage the sale of advertising for KUWB. The shared services agreement is effective immediately.
Doug Gealy, ACME's President and COO, commented, "Today's transaction is in-line with our strategic plan to monetize certain underperforming assets within our station portfolio. Salt Lake City has been and continues to be a very competitive and challenging television market for a stand-alone start-up television station. KUWB has gained a lot of ratings momentum over the past year, but despite that, we believe that this station will better serve the marketplace with a strong traditional affiliate, like Clear Channel's ABC 4. With KUWB, Clear Channel will gain a duopoly, the first of its kind in Salt Lake City, and we believe that the station will prosper given all the cross-promotional benefits of the duopoly. We are both proud and appreciative of what our employees at KUWB have been able to accomplish."
Steve Spendlove, Clear Channel's Television Regional Senior Vice President added, "The addition of KUWB will be a great complement to our current holdings in the market. Clear Channel Television and Radio are both very excited about the opportunities this acquisition presents."
About ACME Communications, Inc.
ACME Communications, Inc. owns and operates nine television stations serving markets covering 3.7% of the nation's television households, making the Company the fourth largest affiliate group of The WB Television Network. The Company's stations are: KUWB-TV, Salt Lake City, UT; KWBQ-TV and KASY-TV, Albuquerque-Santa Fe, NM; WBDT-TV, Dayton, OH; WBXX-TV, Knoxville, TN; WIWB-TV, Green Bay-Appleton, WI; WBUI-TV, Champaign-Springfield-Decatur, IL; WTVK-TV, Ft. Myers-Naples, FL and WBUW-TV, Madison, WI. All of the Company's stations, except KASY-TV, a UPN affiliate, are WB Network affiliates. ACME's shares are traded on the Nasdaq Stock Market under the symbol: ACME.
CONTACT: ACME Communications, Inc.
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Brainerd Communicators, Inc.
Todd St. Onge