Nexstar Media Group Enters into a Definitive Agreement to Acquire the Non-License Assets of Providence CW Affiliate WLWC-TV f...
08 August 2017 - 6:04AM
Business Wire
CW Affiliation Complements Existing Nexstar
Broadcast and Digital Services in the Providence Market
Nexstar Media Group, Inc. (Nasdaq: NXST) (“Nexstar” or “the
Company”) announced today that its subsidiary, Nexstar
Broadcasting, Inc., has entered into a definitive agreement to
acquire the non-spectrum operating assets of WLWC-TV, the CW
affiliate serving Providence, RI (DMA #52) for $4.1 million from
OTA Broadcasting (PVD), LLC (“OTA”). The transaction will be highly
accretive to Nexstar’s operating results immediately upon closing,
which is expected by early fourth quarter of 2017. Nexstar intends
to finance the station acquisition with cash from operations.
OTA sold the WLWC-TV spectrum in the Federal Communication
Commission’s (“FCC”) recently completed Incentive Auction and given
that Nexstar’s agreement with OTA pertains to the purchase of the
station’s remaining operating assets, the proposed transaction is
not subject to FCC approval. The CW affiliation complements the
existing programming and services delivered to viewers and
advertisers in Providence by stations and digital platforms owned
by Nexstar, or with whom Nexstar has a local service agreement,
including WPRI-TV (CBS), WNAC (FOX), MyNetwork and WPRI.com.
Commenting on the agreement, Tim Busch, President of Nexstar
Broadcasting, Inc. said, “The WLWC-TV transaction reflects the
ongoing execution of Nexstar’s successful long-term growth strategy
to opportunistically expand our broadcast and digital platform
through highly accretive acquisitions. The addition of the assets
from WLWC-TV will allow Nexstar to generate incremental advertising
and net retransmission consent revenue growth without increasing
our total U.S. television household reach. The acquisition is
leverage-neutral on a pro-forma basis, and the purchase price
represents a very low multiple of the pro forma contribution to
Nexstar’s operating results, given the anticipated operating
synergies and elevated advertising and distribution revenues.
“Importantly, as our organization grows, we continue to
simultaneously elevate our support of the evolving needs and
interests of our local viewers, hometown businesses and community
organizations that we proudly serve each day. We intend to continue
WLWC-TV’s legacy of local programming and community orientation and
look forward to delivering more exceptional primetime, syndicated,
sports and local news programming to Providence viewers later this
year.”
William Tolpegin, CEO of OTA Broadcasting stated, “We want to
thank the employees of WLWC for their fantastic work at OTA, and we
are thrilled they will be re-joining the Nexstar team. As an
industry leader, Nexstar has consistently delivered strong local
programming to the local communities it serves across the United
States and we are confident that WLWC will continue to offer
viewers in Providence great programming under Nexstar’s
management.”
About Nexstar Media Group, Inc.
Nexstar Media Group is a leading diversified media company that
leverages localism to bring new services and value to consumers and
advertisers through its traditional media, digital and mobile media
platforms. Nexstar owns, operates, programs or provides sales and
other services to 170 television stations and related digital
multicast signals reaching 100 markets or approximately 39% of all
U.S. television households. Nexstar’s portfolio includes primary
affiliates of NBC, CBS, ABC, FOX, MyNetworkTV and The CW. Nexstar’s
community portal websites offer additional hyper-local content and
verticals for consumers and advertisers, allowing audiences to
choose where, when and how they access content while creating new
revenue opportunities. For more information please visit
www.nexstar.tv.
Forward-Looking Statements
This communication includes forward-looking statements. We have
based these forward-looking statements on our current expectations
and projections about future events. Forward-looking statements
include information preceded by, followed by, or that includes the
words "guidance," "believes," "expects," "anticipates," "could," or
similar expressions. For these statements, Nexstar claims the
protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995.
The forward-looking statements contained in this communication,
concerning, among other things, future financial performance,
including changes in net revenue, cash flow and operating expenses,
involve risks and uncertainties, and are subject to change based on
various important factors, including the impact of changes in
national and regional economies, the ability to service and
refinance our outstanding debt, successful integration of acquired
television stations and digital businesses (including achievement
of synergies and cost reductions), pricing fluctuations in local
and national advertising, future regulatory actions and conditions
in the television stations' operating areas, competition from
others in the broadcast television markets, volatility in
programming costs, the effects of governmental regulation of
broadcasting, industry consolidation, technological developments
and major world news events. Nexstar undertakes no obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. In light of
these risks, uncertainties and assumptions, the forward-looking
events discussed in this communication might not occur. You should
not place undue reliance on these forward-looking statements, which
speak only as of the date of this release. For more details on
factors that could affect these expectations, please see Nexstar’s
other filings with the SEC.
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version on businesswire.com: http://www.businesswire.com/news/home/20170807005788/en/
Nexstar Broadcasting Group, Inc.Thomas E. Carter,
972-373-8800Chief Financial OfficerorJCIRJoseph Jaffoni or Jennifer
Neuman212-835-8500 or nxst@jcir.com
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