Tribune Company announced today that it has agreed to buy Local TV holdings, LLC. The definitive agreement includes a payment of $2.725 billion in cash by Tribune for the entire operations of Local TV. That includes 19 television stations in 16 key markets.

Tribune Company's roster of businesses under its ownership includes superstation WGN America, Tribune Digital Ventures, Tribune Studios, 8 major newspapers and 23 television stations. The company distributes multiple platform content. Oak Hill Capital Partners principally owns Local TV.

The acquisition of Local TV will lift Tribune's status as the United States' undisputed number one commercial television station company - comprise of a total of 42 tv stations spanning coast to coast. The sale is especially beneficial for Tribune since Local TV's television stations are mostly ranked first and second in profit share within their local markets.

The transaction is seen to generate increased free cash flow accretive to Tribune's fund pool.