NEW YORK — Paxson Communications has added another UHF TV station to its lineup of 48 O&Os by purchasing WBSX Ann Arbor, Mich., from Blackstar Communications.
Paxson paid $35 million for WBSX and its sister outlet, the low-power W48AV, which factors out to 22 times cash flow, according to industry sources. James Oxendine, chairman and CEO of Blackstar, said the company sold WBSX and W48AV, which run Home Shopping Network programming, to “reduce our debt.”
But other sources say Blackstar will buy out Fox Broadcasting’s interest in KEVN-TV Rapid City, S.D., and its full-power satellite KIVV-TV. Blackstar and Fox formed a strategic partnership last year to buy the South Dakota stations for $14 million.
When Blackstar completes the buyout of Fox’s stake, these sources say, Home Shopping Network will increase its ownership interest in Blackstar from 33% to 45%. HSN supplies programming to two other Blackstar-owned TV stations, WBSF Melbourne, Fla., and KBSP Salem, Ore.