Using proprietary location-focused technology from its Yashi subsidiary, the new Digital Mirror programmatic product offers advertisers simultaneous delivery of television and digital pre-roll video ads. The launch is initially exclusive to Nexstar’s 103 stations reaching 18% of U.S. TV households with plans for broader commercial deployment.
The American Cable Association says the $4.6 billion deal will give Nexstar 115 Big Four affiliates in 101 markets and undue leverage in retrans negotiations. With the leverage, Nexstar would “drive up…fees (and, in turn, consumer prices) and…increase the risk and incidence of broadcast programming blackouts.” As an alternative to denial, ACA suggests forcing Nexstar into “baseball-style arbitration” or preventing its use of “after-acquired station” clauses.
“I’m not sure [OTT] will be a bigger thing in five years than it is today,” the broadcast group CEO says. He adds that he’s focused on providing marketing services in all forms to local business. “At our base, we are a local service business,” he said. “Local businesses are crying out for help here” and Nexstar wants “a larger share of their wallet than just their ad dollars.” Read full coverage of the Borrell Local Online Ad Conference here.
Fourth quarter core ad revenue rose 33.1% and was complemented by an 85.1% rise in retransmission fee revenue and a 105.8% increase in digital media revenue that collectively more than offset the impact of a year-over-year reduction in political revenue of $27.5 million, or 77.7%.
To grease FCC approval of its merger with Media General, Nexstar says it will spin off stations to comply with the agency’s local and national ownership limits. But it asks to keep joint sales agreements in six markets, despite the FCC’s denying a JSA transfer in the Gray-Schurz deal just last week. Nexstar and Media General argue that the six JSAs are “incidental” to the deal.
Nexstar Broadcasting announced Thursday that it reached a new distribution agreement with Cox Communications. The deal, reached just prior to Super Bowl 50, covers Nexstar’s 13 stations in nine markets. Nexstar said programming on all stations will resume “as soon as possible.”
Nexstar Broadcasting Group said Monday that it closed on its purchase for $44 million of KXMB Bismarck; KXMC Minot; KXMA Dickinson; and KXMD Williston, all in North Dakota (DMA 139), from Reiten Television. Nexstar also announced it named Robert Romine general manager of the stations. The Seller, Reiten Television, Inc. has no other broadcast interests. […]
Retransmission disputes usually end up with an 11th hour deal — but not this time for Cox Communications and Nexstar. Cox customers in nine markets lost access to Nexstar stations’ programming Friday night as their five-year-old carriage agreement expired with negotiators still at odds over terms to extend it.
Now that Nexstar has signed a definitive agreement to absorb Media General for $4.6 billion, Nexstar joins Sinclair in having hit the FCC ceiling on station ownership. The groups CEOs — Perry Sook and David Smith, respectively — have a lot in common, but their post-consolidation strategies are diverging. Smith wants Sinclair to be a national programmer; Sook simply wants to get the most out of what he’s got.
The group broadcaster says the cable operator’s claim to the FCC that the proposed Nexstar-Media General merger will hurt cable subscribers contains “egregious mischaracterizations.”
Facing a blackout on Nexstar Broadcasting Group stations in nine markets due to stalled retransmission licensing renewal talks, Cox Communications has spoken out against Nexstar’s $4.6 billion bid to acquire Media General.
The failure to acquire Media General has in no way dampened Meredith’s thirst for acquisitions, and that includes “a handful ” of stations that Nexstar will have to spin off to comply with the FCC’s local ownership limits. As part of its breakup arrangement, Meredith gets first dibs on those stations. “We will continue to be aggressively on the outlook,” said Meredith CEO Steve Lacy in regards to the company’s plans for hunt for more stations. Discussing the company’s options, Lacy added, “We have a lot of levers to pull and we intend to pull them.”
As expected, Nexstar Broadcasting Group and Media General have reached a deal by which Nexstar will pay $17.14 per share in cash and stock for Merger General.The merger creates a new mega-group with 171 stations in 100 markets serving 39% of TV households. Current Media General shareholders will also be entitled to the proceeds from the sale of any Media General spectrum in the FCC’s incentive auction. The parties have agreed to pay Meredith $60 million to terminate its competing merger agreement with Media General.
Cox subscribers in nine markets could lose access to 13 Nexstar stations this Friday if a new distribution agreement isn’t reached before then, the station group warns.
The payout of 24 cents per share marks the third annual consecutive rise in cash dividend and 100% compound annual growth in the payout level since initiation of cash dividends in 2013.
Nexstar reaches an agreement to buy Media General for $17.66 per share, but Meredith, which had earlier agreed to merge with Media General, isn’t ready to walk away. It now proposes a merger of equals, in which Media General shareholders would receive in return for each of their shares $3.90 in cash and one share in the new company valued at $14.94.
Nexstar Broadcasting Group stations in the Southwest and Southeast are telling viewers who are subscribers to Cable One that “unfortunately, despite our best efforts we may not come to an agreement” and they may lose the stations on Dec. 31 when the current retrans deal with the cable provider expires. Nexstar suggests DirecTV and Dish Network as alternatives.
Nexstar’s takeover bid of $16.31 per share for Media General “does not properly compensate our shareholders,” the board says, pointing out that it was just last August that Nexstar was willing to pay $17.
Nexstar CEO Perry Sook says negotiations to acquire Media General are at an impasse after Media General rejected its latest offer of $16.31 per share, a 46.3% premium over Media General stock price when Nexstar declared its interest in the company in September with a $14.50 offer. Media General has countered with an ask of $18.61. Analyst Marci Ryvicker says it’s likely not an impasse, simply a public negotiation, and parties will settle somewhere between the current bid and ask.
Nexstar last week privately offered a package about $16.30 a share in cash and stock based on Tuesday’s close, The Wall Street Journal is reporting, citing unnamed sources. Media General rejected that bid and instead made a counterproposal seeking about $18.60 a share, which Nexstar deemed too rich, the story says. The Nexstar proposal values Media General at about $1.85 billion. Journal subscribers can read the full story here.
The seller is West Virginia Media Holdings. With subchannels, the four stations have seven affiliations with Big Four networks. Nexstar says it is paying 6.3 times 2015-16 cash flow of the stations, including synergies, The acquisition, subject to regulatory approval, is immediately accretive to its operating results, it says.
“We’ve had conversations with many Media General shareholders who support our combination,” Nexstar chief Perry Sook told analysts today.
It rises 42.6% to $224.9 million and drives operating income of $48.3 million, up 16%; adjusted EBITDA of $73.1 million, up 27%; and free cash flow of $46.2 million up 19%.
Nexstar Broadcasting Group today announced today that its board of directors declared a quarterly cash dividend of $0.19 per share of its Class A common stock. The dividend is payable on Friday, Nov. 20, to shareholders of record on Friday, Nov. 6.
The station group’s SVP of operations has earned the nickname ‘the architect” over 18 years by overcoming a wide variety of technical and operational challenges as the group has gotten bigger and bigger. And he is looking forward to creating new designs for local TV. “Just think about what we can do with the technology and how we take it to the next level.”
If Media General rejects its bid, Nexstar will circumvent the board and management and take its case directly to shareholders, say the securities analysts in a note to clients. In doing so, they add, it could up its bid from $14,50 to $17 a share to get the job done.
Starboard Value LP, which owns about 4.5% of Media General stock, says it’s in the best interests of shareholders to jettison its deal to buy Meredith and “negotiate the best deal possible with Nexstar.” It also cautions the board not to take any action to frustrate shareholders’ ability to vote on any proposed transaction.
Charging that Media General deal to acquire Meredith is “value-destructive” and “ill-conceived,” Nexstar CEO Perry Sook says he is prepared to pay $14.50 for Media General, a 30% premium over Friday’s close. Sook said he had tried to buy Media General in August prior to its announcement to buy Meredith for $2.4 billion. The $4.1 billion price tag includes assumption of debt.
It’s paying $44 million for CBS affiliates KXMC, KXMB, KXMA and KXMD in Minot-Bismarck-Dickinson-Williston and will also provide sales and other services to the market’s two ABC affiliates owned by Forum Communications.
As it opens a new $3 million, 15,000-square-foot building, Nexstar will add 30 employees to support an expansion of its local news programming under the WFXR news brand that launches Oct. 1.
The industry executive and Montana native with 16 years of local broadcasting experience will succeed Sandra Zoldowski at the top of KSVI, KHMT and YourBigSky.com.
Perry A. Sook, Nexstar chairman, president and CEO: “The repurchase authorization reflects our confidence in the company’s growing free cash flow … and provides a flexible complement to our existing return of capital initiatives through our quarterly cash dividend.”
Nexstar CEO Perry Sook tells analysts: “Our position on the auction hasn’t changed. We believe the best use of our spectrum would be on a recurring revenue/leasing model rather than selling.” In fact, he added, don’t be surprised if Nexstar racks up more station buys before year end.
It rises 50.6% to $221.3 million and drives record 2Q operating income of $52.5 million, up 50.4%; adjusted EBITDA of $74.9 million, up 51%; and free cash flow of $50.1 million up 64.8%.
A new long-term agreement extends affiliation for five stations owned or operated by Nexstar: KGPE Fresno, Calif.; KREX Grand Junction, Colo; KLAS Las Vegas; WTAJ Altoona, Pa.; and WYOU Wilkes-Barre/Scranton, Pa.
The longtime sales director at WJET-WFXP will now lead the stations and their associated mobile/digital operations.
The TV station group’s record first quarter local and national ad revenue growth, aided by station acquisitions, was complemented by a 90% rise in retransmission fee revenue and a 208% increase in digital media revenue.
The station group promotes Theresa Underwood from WSYR Syracuse GM to a newly-created position overseeing Nexstar’s northeast television and digital media operations.
Editor’s Note: Matrix has issues with the Nexstar press release upon which this story was based, so TVNewsCheck has taken down the original story. It will be replaced with a corrected version as soon as possible.