Many business mergers occur because the companies joining forces are doing so in an effort to reduce costs and increase profits. This can be especially true when the companies in question derive a lot of their operating income from private contributions and government funding. Public broadcast television stations rely heavily on fundraising efforts and government grants in order to produce and air shows for the public, and by relying on such funding, sometimes these stations do not have the means to continue offering quality programs for their audiences. In an effort to meet this demand, two PBS stations in South Florida are planning to merge, according to a recent news article.
The two stations are WPBT2 and WXEL-TV, which serve Miami-Dade/Broward counties and Palm Beach County respectively. Although the merger is still awaiting approval by the FCC, the report states that it will create Florida's largest public media company. By joining forces, the two stations hope to more fully leverage fundraising efforts and resources to offer better programming, including more locally produced programs. The other PBS station in the area, WLRN, will remain a separate entity as it is operated by the School Board of Miami-Dade. The article did not specify what the new station will be named.
Although this merger promises to allow the new station to continue to provide the residents of South Florida with quality public programming, any business merger can be a long and complex process. Any business owners, executives or investors who wish to engage in a merger with another company would need to understand all of the legal issues and ramifications involved. An attorney experienced in business mergers and acquisitions would be able to address all legal concerns and help draft a successful merger plan.
Source: Bizjounals.com, "Two South Florida PBS stations to merge," Shaun Bevin, Jul 16, 2015