Nexstar Media Group

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search
Nexstar Media Group, Inc.
Formerly
Nexstar Broadcasting Group (1996–2017)
Public
Traded as NASDAQNXST (Class A)
Russell 2000 Component
NASDAQ-100 Component
Industry Broadcast television
Predecessor Quorum Broadcasting
Newport Television
Grant Broadcasting
Communications Corporation of America
Media General
West Virginia Media Holdings
Founded June 17, 1996; 22 years ago (1996-06-17)
Irving, Texas, U.S.
Founder Perry A. Sook
Headquarters Irving, Texas, U.S.
Area served
United States (Nationwide)
Key people
Perry A. Sook
(President & CEO)
Thomas E. Carter
(CFO)
Products Television stations
Revenue Increase US$ 1.10 billion (2016)
Increase US$ 287.31 million (2016)
Increase US$ 93.10 million (2016)
Total assets Increase US$ 2.97 billion (2016)
Total equity Increase US$ 284.35 million (2016)
Owner Peter A. Sook (largest individual shareholder)
Public (controlling)
Number of employees
4,527 (2016)
Divisions Lakana
Website nexstar.tv
Footnotes / references
[1]

The Nexstar Media Group is a publicly traded American telecommunications company headquartered in Irving, Texas. The company's portfolio consists of 171 television stations across the U.S., most of whom are affiliates with the four "major" U.S. television networks located in small to medium-sized markets. It also operates all of the stations owned by an affiliated company, Mission Broadcasting, under local marketing agreements.[2][3]

History[edit]

1996–2010: Formation[edit]

Nexstar Broadcasting Group logo (1996–2006)
Nexstar Broadcasting Group logo (2006–2017)

The Nexstar Media Group was founded as the Nexstar Broadcasting Group on June 17, 1996.[4] The first television station bought by Nexstar was WYOU in Scranton, Pennsylvania. Nexstar bought WYOU from Diversified Communications. The sale was completed on September 28 of that year.[5] Nexstar promptly fired two beloved anchors and laid-off several long-term staff-members.[6] Nexstar founder Perry Sook said that WYOU would be Nexstar's flagship station, keeping an office off the newsroom for years.[citation needed] In 1998, Nexstar purchased WBRE-TV in Wilkes-Barre, Pennsylvania. Because this was in the same market as WYOU, WYOU was 'sold' to Mission Broadcasting. This began the first ever 'shared-services' agreement between stations. WYOU's sales staff was kept in Scranton while the production and news operations were moved to WBRE's offices in Wilkes-Barre. WYOU's staff who were not laid-off were fired by Nexstar, hired by Mission and eventually re-hired by Nexstar. Mission Broadcasting then paid Nexstar to operate and control the production and news gathering operations while Mission kept the sales and management team.[citation needed]

In 2003, Nexstar acquired Quorum Broadcasting (owner of 10 television stations).[7][8]

On March 20, 2009, Nexstar operated television stations that were owned by Four Points Media Group, through an outsourcing agreement. However, on September 8, 2011, Sinclair Broadcast Group announced its intent of purchasing the Four Points stations outright and took over the MSA for the stations that October upon Federal Trade Commission (FTC) approval of the deal (the Federal Communications Commission (FCC) gave final approval of the group deal on December 21, and the Sinclair purchase of the Four Points stations was completed on January 1, 2012).[9]

2011–2013: Retransmission consent dispute with Fox[edit]

In 2011, Nexstar and Fox entered into a dispute over terms of reverse compensation; this occurred as Fox began to aggressively seek shares of earnings from retransmission consent agreements with cable and satellite operators as part of affiliation agreement renewals between station groups with affiliates whose affiliation contracts already expired (and carrying the network's programming without a contractual agreement) or were near expiration. Reportedly, the amount from retransmission consent fees from cable and satellite operators that Fox wanted its affiliates to pay the network would be 25 cents per subscriber during the first year of the affiliation agreement, increasing to 50 cents by the fourth year.[10] President of affiliate sales and marketing for Fox, Mike Hopkins, had said earlier in the year that the network would consider moving its affiliation to another market station as a last resort, if existing affiliates did not agree to the terms for reverse compensation retrans sharing.[11]

Fox dropped its affiliation from Nexstar-owned/managed stations in four markets, with three of the replacement stations adding Fox in addition to existing affiliations with the MyNetworkTV program service (owned by Fox parent company News Corporation). In Indiana, two markets saw Fox go from a primary affiliation of one station to joining an existing MyNetworkTV-affiliated digital subchannel of a competing Big Three station, with MyNetworkTV going to a secondary affiliation: in Evansville, Fox moved from WTVW (which then became an independent station and later joined The CW) to a MyNetworkTV-affiliated subchannel of CBS affiliate WEVV-TV on July 1, while in Fort Wayne, the Fox affiliation moved from WFFT-TV to a MyNetworkTV-affiliated subchannel of NBC affiliate WISE-TV on August 1.[12] The network also moved its affiliation in Springfield, Missouri from KSFX-TV (operated in a duopoly with area CBS affiliate KOLR) to upstart MyNetworkTV affiliate KRBK on September 1, 2011, with both stations becoming Independents.[12] Nexstar chose to drop Fox from WFXW in Terre Haute, Indiana and re-affiliate with ABC on September 1, 2011 (becoming the only Nexstar station thus far to affiliate with another network following the removal of the Fox affiliation) as part of a long-term renewal agreement between Nexstar and ABC for the group's nine existing ABC stations, reversing a 1995 switch that saw Terre Haute losing over-the air carriage of ABC programs (since then, ABC has been seen in the market via Indianapolis affiliate WRTV on area cable and satellite providers);[13][14] the Fox affiliation then moved to a digital subchannel of CBS affiliate WTHI-TV which also added MyNetworkTV as a secondary affiliation. Nexstar's remaining Fox affiliates have since signed a renewal agreement through December 2013;[15] in addition, following the settlement of Nexstar's antitrust lawsuit against WISE-TV's then-owner Granite Broadcasting, WFFT-TV reclaimed the Fox affiliation on March 1, 2013.[16][17]

2012–2013: Acquisitions[edit]

In July 2012, Nexstar agreed to purchase 11 stations and Inergize Digital Media from Newport Television with two stations going to affiliate Mission Broadcasting.[18]

On April 24, 2013, Nexstar announced that it would acquire the entire group of Communications Corporation of America, KMSS-TV, KPEJ-TV, and most of the ComCorp-managed stations that are owned by White Knight Broadcasting would be sold to Mission Broadcasting while WEVV-TV and White Knight Broadcasting's KSHV-TV would be sold to a female-controlled company called Rocky Creek Communications, with Nexstar assuming operational control of those stations.[19]

On September 16, 2013, Nexstar announced that it would acquire WOI-DT, KCAU-TV, and WHBF-TV from Citadel Communications for $88 million. Nexstar immediately took over the stations' operations through a time brokerage agreement.[20] The deal followed Phil Lombardo's decision to "slow down," as well as a desire by Lynch Entertainment to divest its investments in WOI and WHBF; Citadel would continue to own KLKN, WLNE-TV, and its Sarasota properties.[21] On March 5, 2014, the Federal Communications Commission approved the sale of these stations to Nexstar outright and the deal was completed on March 13. KCAU continued to use Citadel's standardized news sets, graphics and logos.[citation needed]

On November 6, 2013, Nexstar announced that it would purchase the Grant Broadcasting stations for $87.5 million. Due to Federal Communications Commission ownership regulations, one of the stations, KLJB, was spun off to Marshall Broadcasting, but will be operated by Nexstar through a shared services agreement.[22] The sale was completed on December 1, 2014.[23]

2015–2017: Acquisition of Media General[edit]

On September 28, 2015, Nexstar announced that it presented an unsolicited offer to buy Media General for $4.1 billion (including debt). Per share, shareholders of Media General would receive $10.50 in cash and 0.0898 shares of Nexstar, a total equivalent of $14.50 per share. Nexstar's offer was seen by analysts as a maneuver to torpedo the merger of Media General with Meredith Corporation (announced on September 8). If Media General agreed to the counter-offer within a 20-day period, Nexstar would expand its portfolio to 114 television stations, pending spin-offs in markets where both own stations and federal approval.[24][25][26][27][28] On November 16, Media General rejected the offer but agreed to negotiate after concluding its merge with Meredith.[29]

On January 27, 2016, Media General announced that it had entered into a definitive agreement to be acquired by Nexstar in a deal valued at $17.14 per-share, valuing the company at $4.6 billion plus the assumption of $2.3 billion debt. The combined company became known as Nexstar Media Group, and owns 171 stations, serving an estimated 39% of U.S. households. The company paid Meredith Corporation (whom Media General had previously proposed a merger with) a termination fee of $60 million, and gave Meredith right of first refusal to acquire any broadcast or digital properties that may be divested during the purchase. The deal also included contingent value rights for Media General shareholders if it sold spectrum from its stations during the FCC's spectrum incentive auction.[30][31]

On May 27, 2016, Nexstar announced the sales of five stations. WCWJ in Jacksonville, Florida, along with WSLS-TV in Roanoke, Virginia, was sold to the Graham Media Group, and KADN-TV, as well as KLAF-LD in Lafayette, Louisiana, was sold to Bayou City Broadcasting, with KREG-TV in Glenwood Springs, Colorado going to Marquee Broadcasting as part of a series of divestitures required following Nexstar's acquisition of Media General due to Federal Communications Commission ownership caps (the sale of the Roanoke and Lafayette stations are required as Media General and Nexstar both own stations in those markets).[32] On June 3, 2016, it was announced that Nexstar would spin-off WBAY-TV in Green Bay, Wisconsin and KWQC-TV in Davenport, Iowa to Gray Television for $270 million.[33][34]

On June 13, 2016, Nexstar announced that it would sell WFFT in Fort Wayne, Indiana, KQTV in St. Joseph, Missouri, KIMT in Rochester, Minnesota, WTHI in Terre Haute, and WLFI in Lafayette, Indiana to Heartland Media, through its USA Television MidAmerica Holdings joint venture with MSouth Equity Partners, for $115 million. The divestitures will allow Nexstar to comply with FCC ownership rules (specifically pertaining to national market coverage for station owners) in advance of the approval proceedings of the merger of both groups (Nexstar already owns NBC affiliate WTWO and operates ABC affiliate WAWV-TV in Terre Haute, and plans to acquire Media General-owned CBS affiliate WANE-TV in Fort Wayne).[35]

The transaction was approved by the FCC on January 11, 2017, and the sale was completed on January 17.[36]

2014–2017: Other events[edit]

On March 13, 2014, Nexstar announced that it would purchase Internet Broadcasting, for $20 million. The company had also recently acquired competitor Inergize Digital through its purchase of assets from Newport Television, followed by Enterprise Technology Group, a spun-out joint venture between LIN Media and Fox Television Stations). The providers were merged to form Lakana, led by former ETG CEO Phillip Hyun.[37][38][39][40]

On February 2, 2015, Nexstar finalized its acquisition of Yashi, a location focused video advertising and programmatic technology company, for $33 million.[41] On November 17, 2015, Nexstar announced its intent to purchase West Virginia Media Holdings' stations for $130 million. The company took over the stations' non-license assets under a time brokerage agreement in December 2015 pending the formal completion of the deal, expected in late 2016. The two companies viewed the acquisition as being a complement to Nexstar's WHAG-TV, whose coverage area includes the Eastern Panhandle region. Nexstar CEO Perry A. Sook is an alumnus of WVMH–owned WOWK-TV.[42] The sale was completed on January 31, 2017.[43]

On April 30, 2017, the Wall Street Journal reported that there were competing bids for Tribune Media from Nexstar and a partnership between 21st Century Fox and private equity firm Blackstone Group.[44][45][46][47] However, on May 8, 2017, it was announced that Tribune reached a deal to be acquired by Sinclair Broadcast Group.[48] On May 26, 2017, it was reported by DealReporter that Nexstar may be considering a bid to acquire Tegna, Inc., although such a deal would likely require significant divestments due to ownership conflicts and exceeding the ownership cap.[49]

Television stations[edit]

References[edit]

  1. ^ "US SEC: Form 10-K Nexstar Media Group, Inc". U.S. Securities and Exchange Commission. 
  2. ^ "Virtual Duopolies Coming Under Fire". TVNewsCheck. Retrieved 30 May 2012. 
  3. ^ Stelter, Brian. "You Can Change the Channel, but Local News Is the Same". The New York Times. Retrieved 30 May 2012. 
  4. ^ "Nexstar Broadcasting Group, Inc. Profile". Yahoo Finance. Retrieved December 10, 2014. 
  5. ^ Application Search Details CDBS Public Access, Federal Communications Commission, Retrieved 12 March 2017.
  6. ^ Ex-Anchor Sues Over Her Firing Debbie Dunleavy Worked At Local TV Station From 1978 To 1996, Times Leader, 14 August 1998, Retrieved 12 March 2017.
  7. ^ "Nexstar to acquire Quorum Broadcasting". Dallas Business Journal. 
  8. ^ Nexstar Broadcasting Group to Acquire Quorum Broadcasting
  9. ^ Nexstar Managing Four Points Stations, Broadcasting & Cable, March 23, 2009 Archived June 8, 2010, at the Wayback Machine.
  10. ^ "Fox Gives No Ground On Retrans Sharing", TVNewsCheck, April 12, 2011.
  11. ^ "Fox Inks New Affiliation Agreements, Scraps Others," from Broadcasting & Cable, 5/11/2011 Archived May 15, 2011, at the Wayback Machine.
  12. ^ a b "Fox Moves Afills In Springfield, Ft. Wayne". TVNewsCheck. June 20, 2011. Retrieved June 20, 2011. 
  13. ^ "Nexstar's WFXW Switching From Fox To ABC," from Broadcasting & Cable, 6/28/2011 Archived July 1, 2011, at the Wayback Machine.
  14. ^ Jessell, Harry A. (June 28, 2011). "Nexstar Drops Fox For ABC In Terre Haute". TVNewsCheck. Retrieved June 28, 2011. 
  15. ^ McAvoy, Kim (April 15, 2012). "Fox Is TV's New Station Group Leader". TVNewsCheck. Retrieved April 17, 2012. Nexstar renewed its remaining eight Fox affiliates through December 2013. 
  16. ^ Knox, Merrill (February 6, 2013). "Nexstar, Granite Settle Antitrust Lawsuit, Returning Fox Affiliation to Fort Wayne's WFFT". TVSpy. Retrieved February 6, 2013. 
  17. ^ Malone, Michael (February 6, 2013). "Nexstar's WFFT Fort Wayne Back in Fox Fold". Broadcasting & Cable. Archived from the original on February 10, 2013. Retrieved February 6, 2013. 
  18. ^ "Newport Sells 22 Station For $1 Billion". TVNewsCheck. July 19, 2012. Retrieved July 19, 2012. 
  19. ^ Tweets and Retweets From the Editors. "Nexstar, Mission Buy 19 Stations For $270M". TVNewsCheck.com. Retrieved 2015-04-20. 
  20. ^ Malone, Michael (September 16, 2013). "Nexstar to Acquire Citadel's Iowa Stations for $88 Million". Broadcasting & Cable. Archived from the original on September 21, 2013. Retrieved September 16, 2013. 
  21. ^ Hicks, Lynn (September 16, 2013). "Nexstar buys WOI, other Citadel TV stations in Iowa". Des Moines Register. Archived from the original on September 16, 2013. Retrieved September 16, 2013. 
  22. ^ Malone, Michael (November 6, 2013). "Nexstar to Acquire Seven Grant Stations For $87.5 Million". Broadcasting & Cable. Retrieved November 6, 2013. 
  23. ^ Consummation Notice,CDBS Public Access Federal Communications Commission, Retrieved 3 December 2014.
  24. ^ "Nexstar Offers $4.1 Billion For Media General". tvnewscheck.com. 
  25. ^ "UPDATE 3-Broadcaster Nexstar offers to buy Media General in $4.1 bln deal". Reuters. 
  26. ^ Nexstar Broadcasting Proposes To Acquire Media General – Nexstar Broadcasting
  27. ^ Nexstar Offers to Buy Media General for $1.85 Billion – The New York Times
  28. ^ "Business: Washington Post Business Page, Business News". bloomberg.com. 
  29. ^ Media General Rejects Nexstar’s $1.9B Offer, But Agrees To Talk – Deadline
  30. ^ "Nexstar-Media General: It's A Done Deal". TVNewsCheck. Retrieved 27 January 2016. 
  31. ^ "Nexstar Clinches Deal to Acquire Media General". The New York Times. Retrieved 27 January 2016. 
  32. ^ "Nexstar Selling Five Stations in Four Markets". TVNewsCheck. Retrieved 27 May 2016. 
  33. ^ "Gray Buying Two Nexstar Spinoffs For $270M". TVNewsCheck. Retrieved 3 June 2016. 
  34. ^ Marszalek, Diana (2016-06-03). "Gray Buys Nexstar Stations in Green Bay, Davenport". Broadcasting & Cable. NewBay Media, LLC. Retrieved 2016-06-18. 
  35. ^ "Prather Buys 5 TVs From Nexstar-Media Gen". TVNewsCheck. June 13, 2016. Retrieved June 13, 2016. 
  36. ^ Nexstar Broadcasting Group Completes Acquisition of Media General Creating Nexstar Media Group, The Nation’s Second Largest Television Broadcaster Nexstar Media Group, 17 January 2017. Retrieved 17 January 2017.
  37. ^ Jessell, Harry A. "Fox Stations Moving to WorldNow Platforms". TVNewsCheck. Retrieved 20 April 2012. 
  38. ^ "Fox Marketing New Web Platform To All". TVNewsCheck. Retrieved 11 June 2013. 
  39. ^ "Nexstar Rolls Up Its 3 CMS Units Into Lakana". TVNewsCheck. Retrieved 20 June 2015. 
  40. ^ "Nexstar Buys Internet Broadcasting Systems". TVNewsCheck. March 13, 2014. Retrieved March 13, 2014. 
  41. ^ "exstar Broadcasting Acquires Yashi, Leading Local Digital Video Advertising and Programmatic Technology Company, for $33 Million in Accretive Transaction". Marketwatch. February 2, 2015. Retrieved February 3, 2015. 
  42. ^ "Nexstar Buys 4 W.Va. TVs For $130M". TVNewsCheck. 
  43. ^ Consummation Notice, CDBS Public Access, Federal Communications Commission, Retrieved 1 February 2017.
  44. ^ Flint, Joe (April 30, 2017). "Possible Bidding War Emerges for Tribune Media". The Wall Street Journal. Retrieved May 3, 2017. 
  45. ^ "In Fox Bid for Tribune, a Return to Erratic Murdoch Deal Making". The New York Times. Retrieved 3 May 2017. 
  46. ^ Merced, Michael; Steel, Emily (April 30, 2017). "21st Century Fox and Blackstone Said to Be Interested in Buying Tribune Media". The New York Times. Retrieved May 1, 2017. 
  47. ^ "Reports: Fox News owner joins race to buy Tribune Media". Chicago Tribune. May 1, 2017. Retrieved May 1, 2017. 
  48. ^ "Sinclair Broadcast to buy Tribune Media in $3.9 billion deal". CNBC. May 8, 2017. Retrieved May 26, 2017. 
  49. ^ "Report: Nexstar may eye bid for Tegna in stations buyout". SeekingAlpha. May 26, 2017. Retrieved May 26, 2017. 

External links[edit]