It’s purchasing the CW affiliate from Media General for “less than five times 2009 projected cash flow.”
Nexstar Broadcasting Group Inc. is buying WCWJ, the CW affiliate in Jacksonville, Fla. (DMA 47), from Media General Inc. While the purchase price was not disclosed Nexstar said it was “less than five times 2009 projected cash flow.”
The purchase marks Nexstar’s entrée into Florida and represents the 52nd television station that the company owns or for which it provides sales, programming or other services.
Commenting on the agreement, Nexstar Broadcasting Group President-CEO, Perry A. Sook said, “The acquisition of WCWJ highlights Nexstar’s role in the industry as a leading consolidator of stations in mid-sized markets through accretive transactions. We are excited to enter the state of Florida and the Jacksonville television market, particularly with a station in the state’s largest and most populated city. Nexstar will offer Jacksonville viewers CW programming as well as top quality local sports and syndicated programming. We’ll also bring effective on-air and on-line marketing solutions to local and national advertisers including the launch of Nexstar’s differentiated e-MEDIA offerings through our proven Community Portal model.
“This transaction is also consistent with our ongoing debt-reduction priority. Upon closing, this acquisition will be immediately accretive to Nexstar’s operating results. The purchase price for WCWJ is less than five times 2009 projected cash flow. The station will benefit from the addition to Nexstar’s retransmission consent agreements with cable operators, direct broadcast satellite providers and telcos. Like other recently completed transactions, the acquisition of WCWJ allows Nexstar to expand and diversify its station portfolio while simultaneously deleveraging the balance sheet,” Sook added.
The transaction, which is subject to FCC approval and other customary conditions, is expected to close this summer.