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Majority Stake In Channel 25 Sold To Private Equity Firm

Leon Black, founder and CEO of Apollo, discusses the roots of his company in a press video. (Screenshot via Apollo video)
Leon Black, founder and CEO of Apollo, discusses the roots of his company in a press video. (Screenshot via Apollo video)

Channel 25 in Boston will soon have its third owner in five years.

The Fox affiliate's parent company, Cox Media Group, said Friday it has agreed to sell a majority stake in its entire, 14-station portfolio to Apollo Global Management, a New York private equity firm.

Cox acquired Channel 25 from the Fox Television Stations Group in 2014. Cox will retain a minority stake in the station, as well as 13 others in markets that include Atlanta, Seattle and Orlando.

Cox and Apollo did not disclose the terms of their deal, but media broker Scott Fybush estimated the value of the Cox Media Group at "well into the billions" and said Channel 25, alone, could be worth several hundred million dollars.

"There's still a huge value to being the local TV station that can grab [retransmission] consent money in a top 10 market, and that can grab the ad revenue that comes from being a station that has football on Sundays, and has the Super Bowl once every four years," Fybush said. "That's worth something right there."

Cable and satellite providers pay to retransmit local TV stations; such fees can be lucrative and can make stations appealing investments.

Reuters previously reported that a deal between Cox and Apollo was imminent, and that it could be worth $3 billion.

The sale of Channel 25 is merely the latest change on the evolving Boston TV scene. Since the last time the station changed hands, Channel 7 has gone independent, and NBC has launched a new station, Channel 10.

Related:

Headshot of Callum Borchers

Callum Borchers Reporter
Callum covered the Greater Boston business community for Bostonomix.

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