Irving, Texas (July 26, 2006) - Nexstar Broadcasting Group, Inc (Nasdaq: NXST) announced today that it entered into a definitive agreement to acquire the assets of WTAJ-TV
(Channel 10), the CBS affiliate serving the Johnstown/Altoona, Pennsylvania market for $56 million in cash from Television Station Group Holdings, LLC. The acquisition complements the Company’s current Pennsylvania television station operations located in Wilkes Barre/Scranton and Erie. As part of the purchase consideration, Nexstar will also acquire the license and certain assets and contracts of WLYH-TV, in Lancaster PA which is operated by a third party under a ‘grandfathered’ Time Brokerage Agreement that extends until 2015.Commenting on the acquisition, Nexstar Broadcasting Group President and CEO, Perry A. Sook said, “The acquisition of WTAJ-TV reflects our focus on expanding Nexstar’s portfolio with stations that have leading audience and revenue shares and quality, highly rated local news programming. The acquisition is also consistent with our clustering strategy whereby we seek to operate multiple stations in concentrated geographic regions.”
WLYH-TV is the UPN affiliate serving the Harrisburg/Lancaster/Lebanon/York, Pennsylvania market and is slated to become a CW affiliate this fall.
Mr. Sook added, “Under Nexstar’s stewardship WTAJ-TV will realize additional retransmission revenues as well as synergistic operating improvements, and on a pro-forma basis the acquisition is immediately accretive to the company.”
Nexstar intends to finance the acquisition through borrowings under its senior credit facility. The transaction, which is subject to FCC approval, will not materially impact the company’s leverage ratios and is expected to close in the fourth quarter of 2006.
Including pending acquisitions, Nexstar Broadcasting Group currently owns, operates, programs or provides sales and other services to 49 television stations in 29 markets in the states of Illinois, Indiana, Maryland, Missouri, Montana, Texas, Pennsylvania, Louisiana, Arkansas, Alabama and New York. Nexstar’s television station group includes affiliates of NBC, CBS, ABC, FOX and UPN, and reaches approximately 8.0% of all U.S. television households.
(Editors Note: It should be noted that WTAJ listed owners are the Lilly's of SJL. Operators of WSEE and WICU.. There must be money to borrow somewhere...How about for Erie and HD before October 2008?)
1 comment:
WTAJ sucks btw. That's my new CBS channel (and I'm familiar w/ it from my pre-Erie days). There are other channels here (its competition) which are in HD and from what I know of Nexstar, they won't be making TAJ HD any time soon either. However, it is the only game in town for Altoona. The NBC channel is in Johnstown and covers J-town more heavily but maintains a strong presence and field office in Altoona.
Interesting news, this.
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