Man Bites Dog- Broadcaster Invests In Dealerships

BALTIMORE, Dec 24, 2002; Reuters reported that television broadcaster Sinclair Broadcast Group Inc. said on Tuesday it would invest $20 million in an auto dealership holding company controlled by Sinclair Chief Executive David Smith.

Sinclair said the move to buy a 17.5 percent equity stake in closely held Summa Holdings Ltd. was scrutinized by a special board committee and outside legal counsel. As part of the arrangement, Summa will buy a base level of advertising on Sinclair's television stations.

Sinclair will also get a seat on the board of Summa, a holding company that owns dealerships, retail tire franchises, and a leasing company. The $20 million cash investment will be used by Summa solely to buy automobile dealerships, said Sinclair, which owns and operates or provides programs or sales services to 62 U.S. stations