The group owner completes the $20-million purchase of CBS affiliates WFRV Green Bay, Wis., and WJMN Marquette, Mich., and names Joseph Denk their VP and general manager.
DMAS 71 & 179
Nexstar Closes 2-Station Buy, Denk New GM
Nexstar Broadcasting Group announced today that it completed the previously announced purchase of CBS affiliates WFRV Green Bay, Wis. (DMA 71), and WJMN Marquette, Mich. (DMA 179), and has appointed Joseph Denk vice president and general manager of both stations and their associated e-Media operations.
The stations were purchased from an affiliate of Liberty Media Corp. for $20 million and, the company said, are expected to be immediately accretive to Nexstar’s operating results. The deal’s completion means Nexstar owns, operates, programs or provides sales and other services to 13 CBS affiliates and a total of 65 television stations and related digital signals in 36 markets in 16 states, and reaches approximately 13.5 million television households.
Nexstar Broadcasting Group President-CEO Perry A. Sook said in a statement: “The acquisition of WFRV and WJMN brings immediate strategic and financial benefits to Nexstar as it expands and diversifies our station portfolio, is de-leveraging on a debt-to-cash-flow basis and marks our entrée to Wisconsin and Michigan which complement our existing Midwest operations.
“Under Nexstar’s ownership both stations will realize additional retransmission revenues as well as synergistic operating improvements. As such, the purchase price for the two stations is less than five times the average 2010/2011 pro-forma projected cash flow. On a pro-forma basis the acquisition is immediately accretive and we expect WFRV and WJMN to contribute to our results for the second half of 2011.”
Sook added: “With both WFRV and WJMN broadcasting in HD, we have a strong platform for marketing solutions for local and national advertisers which we plan to expand with the launch of Nexstar’s e-Media and mobile offerings through our proven Community Portal model.”
Since June 2008, Denk has been VP-GM of Nexstar-owned WQRF Rockford, Ill., and (through a management services agreement), Mission Broadcasting-owned WTVO and community portal Mystateline.com. Denk will continue to report to Tim Busch, EVP and co-COO of Nexstar Broadcasting.
BRAND CONNECTIONS
Before joining Nexstar, Denk was GM of KFXA-KGAN Cedar Rapids Iowa, from 1996 to 2008. He also held leadership positions at WRSP Springfield, Ill., and KDUB Dubuque Iowa.
Nexstar’s purchase consideration for WFRV and WJMN included $17.5 million of cash, which it financed through borrowings under its senior credit facility, and the issuance to an affiliate of Liberty Media Corp. of 334,292 Nexstar Broadcasting Group Class A shares valued at $2.5 million. The shares issued as partial consideration in the transaction are unregistered, carry piggyback registration rights and are subject to a six-month lock up period.
Comments (2)
none none says:
July 1, 2011 at 9:44 am
I hear both stations are switching to FOX – not.
Hope Yen and Charles Babington says:
July 1, 2011 at 10:00 pm
In about 95% of the cases of a station being sold, I’d understanding bringing in your own man/woman as GM. But unless Perry Kidder wants to ride off into the sunset, something he is WELL worthy of, IMHO he should have been retained as incoming GM! He’s led that station under several ownerships and ups and downs, and not without GOOD reason! Sometimes in acquiring a station you get to have one of the BEST managers in the business, of which Perry most certainly is. God Bless and happy trails, Perry, whatever path you should take!