IRVING, Texas & PROVIDENCE, R.I.--(BUSINESS WIRE)--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.
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.