Cerberus buys TV stations for $185m

The New York-based distressed giant is buying seven US television stations from CBS Corporation.

Cerberus Capital Management has agreed to buy seven television stations from CBS Corporation, a media company, for $185 million (€142 million).

The announcement comes just a month after Oak Hill Capital Partners agreed to buy nine network-affiliated television stations from The New York Times Company for $575 million.

Under the agreement, Cerberus will be buying CBS stations and their network affiliations in Austin, Texas; Salt Lake City, Utah; Providence, Rhode Island; and West Palm Beach, Florida. If the deal meets regulatory approval, CBS will be left with 39 stations.

Cerberus worked with TV veteran Dick Reingold, and was advised by CobbCorp and Wachovia Capital Markets. Schulte Roth & Zabel acted as legal counsel for Cerberus, while Wiley Rein was regulatory counsel.

In January, the firm reportedly dropped out of the Vornado Realty Trust consortium, which just yesterday lost the bid for Equity Office Properties to Blackstone Group

Cerberus, which has $22 billion under management, recently appointed John Snow, former US Treasury Secretary as its chairman.