It’s signed a letter of intent and is conducting due diligence on CCA properties encompassing 12 stations in smaller markets. The deal would boost Nexstar’s portfolio to about 84 stations. In other TV group news, Local TV LLC has put itself up for sale.
Nexstar Broadcasting is on the verge of closing a deal to acquire Communications Corp. of America, according to sources.
Nexstar has signed a letter of intent and is conducting due diligence on CCA properties encompassing 12 stations in smaller markets.
CCA stations are in markets ranging Shreveport, La. (DMA 82), to Alexandria, La. (DMA 179). Nexstar’s portfolio ranges from Washington (DMA 8) to St. Joseph, Mo. (DMA 201). Most are in mid-size to smaller markets.
The acquisition would boost Nexstar’s station count to roughly 84, bump up its duopoly count by at least one and enhance its already strong presence in Louisiana and Texas.
The seller multiple for the transaction likely will come in around 7-8 times cash flow, roughly in line with cash flow multiples for recent transactions. Until Nexstar completes due diligence and analyzes potential synergies, the buyer multiple remains unclear, though it’s highly likely to be a point or two lower than the seller multiple.
The two companies hope to announce the transaction by or before the upcoming NAB Show, which kicks off in Las Vegas on April 6.
At deadline, executives at Nexstar and CCA had not returned phone calls requesting comment.
In another sign of the station trading market heating up, Local TV LLC has put itself up for sale. Management at the stations has begun informing employees to look for potential buyers looking at the stations in the coming weeks and months.
Local TV LLC is the company formed by the former New York Times stations when they were purchased by Oak Hill Capital for $575 million in 2007. Headed by Bobby Lawrence, Local TV LLC portfolio ranges from large markets, including KDVR-KWGN Denver (DMA 17), WJW Cleveland (DMA 18), down to small, including WQAD Davenport, Iowa (DMA 99), and KFSM, Fort Smith, Ark. (DMA 101).
Managers at the Local TV LLC stations either declined to comment, did not return phone calls requesting comment or referred inquiries to corporate executives. As of deadline, corporate executives had not returned calls requesting comment.