Citadel Communications, a Bronxville-based broadcasting company, recently won a court auction to become the new owner of a financially struggling Rhode Island TV station.
A Superior Court judge approved the sale March 22, according to a statement issued by Matthew McGowan, a Providence, R.I.-based bankruptcy lawyer who was a court-appointed mediator for the bidding process. Citadel is paying $4 million in cash for WLNE-TV, the Providence station which is also an ABC affiliate. The overall deal is valued at $5.8 million including the station”™s cash holdings and other assets.
McGowan said that while he was hoping for a higher bidding price, he is still satisfied with the overall result. “Although I am disappointed that, despite our best efforts, we were not able to generate the type of robust competitive bidding that we were hoping for and which the process was set up to facilitate, I am pleased overall with the sale process that was carried out, and congratulate CEO Phil Lombardo and Citadel for his and its success in that process,” McGowan said.
“We know of Mr. Lombardo”™s success with his other television stations (and) believe that he and Citadel will be a good and financially strong owner of WLNE/ABC-6 in Providence, which will benefit our employees and the community, and we look forward to working cooperatively with Citadel in transition matters.”
WLNE-TV Vice President and General Manager Steve Doerr said, “We are obviously pleased that the ownership situation has been resolved and we can focus our collective energies on moving forward. Citadel is run by operators with a lot of experience in markets like Providence, and we are excited about being a part of such a successful organization.”
The station currently has some 80 employees in Providence.
Plans to revive struggling station
According to Citadel Communications, the company also owns four TV stations in Illinois, Iowa and Nebraska. It is a parent company for KCAU-TV in Sioux City, Iowa, WOI-TV in Ames/Des Moines, Iowa, KLKN-TV in Lincoln, Neb., and WHBF-TV in Rock Island, Ill. Three of them are ABC affiliates and one is a CBS affiliate. WLNE-TV, though, will now be its biggest station. It is in the nation”™s 53rd-largest television market and serves Providence as well as New Bedford, Mass., audiences. The company is not related to Las Vegas-based radio giant Citadel Broadcasting.
Citadel is scheduled to officially take over the station on May 1. Meanwhile, company officials, including CEO Lombardo, have begun meeting with WLNE-TV staff to start the transition process, according to Citadel.
WLNE-TV has been struggling financially in recent years. It has been placed under receivership since mid-2010 when its parent company, Global Broadcasting of Southern New England, became insolvent.
The station has also been lagging behind other local stations in ratings. But Citadel said it wants to turn things around with investments in equipment upgrades and new business strategies.
The company said it will review the station”™s operating procedures and personnel and upgrade aging broadcasting equipment when necessary. The plan could also include upgrading the station”™s broadcast to high definition this year and putting more emphasis and resources into news production.
Citadel Communications was founded by Lombardi, a long-time Bronxville resident. He also is chairman of the Broadcasters Foundation of America, a nonprofit group that assists broadcast professionals, and is a former joint board chairman of the National Association of Broadcasters, an industry advocacy group.
