• by David Goetzl  @dgoetzl, August 10, 2007

Young Broadcasting is so eager to unload its MyNetworkTV affiliate in the nation's fifth-largest market, its CEO said he wakes up thinking about making a deal. The San Francisco station, which saw revenues drop some 15% in the second quarter, is believed to be dragging down the station group's middling stock price.

"We're just not waiting for the phone to ring, we're thinking about this all the time," said Vincent Young on a conference call to discuss second-quarter results.

One potential sales holdup is the uncertainty in the credit market, which has sent the future of the economy into flux. Nonetheless, until only weeks ago, private-equity groups seemed to be chomping at the bit to acquire local stations.

The market gyrations have forced Nexstar to stop its pursuit of a sale, while the LIN TV group is still on the market, but not expecting any deal anytime soon.

CEO Young said the company has been focused on selling KRON, the former NBC affiliate it acquired seven years ago, for some time. It aims to unlock shareholder value; the group has 10 stations. But Young said "it's just not easy to line up the right buyer and the right seller on an individual asset"--although he added, "we'll do so."

He did indicate that if ratings improve on MNTV and the ad market in the struggling San Francisco market at-large improves, the station could see a $20 million jump in its bottom line, improving its sale prospects.

Going forward this year, the executive is also looking for a short-term boost from Democratic presidential candidates eager to run spots early next year as the California primary has been moved up. KRON bills itself as "The Bay Area's News Station"--programming candidates want to advertise on. The Democrats must win the left-leaning region by significant margins to ensure a victory in the state.

Overall at the station group in 2Q, CEO Young said revenues from its Internet operations came in at $1 million, up 74% from a year ago--and the company remains bullish on that business. The Sinclair group indicated recently it does not view Internet sites linked to stations as a viable business in the near-term.

Net revenue across the board at Young was down 8.5% from a year ago to $52 million--partly due to the continued hiccups in the auto category, down 17%, and the expected drop in political revenues in a year with no congressional elections. (Besides San Francisco, the company could do well later this year as presidential candidates gear up for the Iowa caucus and seek to advertise on its NBC affiliate in Davenport, Iowa.) Operating income dropped from $7.7 million to $4 million.