It's been a busy couple years in the Green Bay television market. First WLUK's parent company buys up WIWB and folds it into its operations, and now WFRV is being purchased by Irving, TX-based Nexstar Broadcasting. Press release below --
IRVING, TX, GREEN BAY & MARQUETTE, MI (NEXSTAR) - Nexstar Broadcasting Group, Inc. announced today that it entered into a definitive agreement to acquire the assets of WFRV-TV and WJMN-TV, the CBS affiliates serving the Green Bay, Wisconsin and Marquette, Michigan markets, respectively, from an affiliate of Liberty Media Corporation for $20 million.
The proposed acquisition is expected to be accretive to Nexstar’s operating results immediately upon closing and will expand its coverage to 36 markets in 16 states, reaching approximately 13.5 million television households. Furthermore, the addition of WFRV-TV and WJMN-TV will increase Nexstar’s CBS representation to 13 television stations and expand to 65 the number of stations either owned or operated by Nexstar.
Nexstar’s purchase consideration will be comprised of $17.5 million of cash, which it intends to finance through borrowings under its senior credit facility, and the issuance of Nexstar Broadcasting Group Class A common stock valued at $2.5 million to an affiliate of Liberty Media Corporation. The shares to be issued will be valued based on the average closing share price of Nexstar Broadcasting Group for the 20 trading days prior to completing the transaction. In addition, the shares to be issued as partial consideration in the transaction will be unregistered, will carry piggyback registration rights and are subject to a six month lock up period.
Commenting on the agreement, Nexstar Broadcasting Group President and Chief Executive Officer, Perry A. Sook said, “The acquisition of WFRV and WJMN highlights Nexstar’s role in the industry as a leading consolidator of stations in mid-sized markets through accretive transactions. Similar to other Nexstar transactions, the acquisition allows the Company to expand and diversify its station portfolio and presents a new opportunity for the Company to leverage its intellectual capital and operating management. In addition, entering Wisconsin and Michigan represent a natural complement to our existing Midwest operations.
“The purchase price for the two stations is less than five times the average 2010/2011 pro-forma projected cash flow. Under Nexstar’s ownership both stations will realize additional retransmission revenues as well as synergistic operating improvements, and on a pro-forma basis the acquisition will be immediately accretive to results and de-leveraging on a debt-to- cash-flow basis. We’ll also bring effective online marketing solutions to local and national advertisers through the launch of Nexstar’s e-Media and mobile offerings through our proven Community Portal model.”
According to Nielsen Media’s 2010-2011Local Market Estimates, the Green Bay and Marquette DMA’s are ranked as the 71st and 179th largest television markets in the country, respectively.
The transaction, which is subject to FCC approval and other customary conditions, is expected to close in the third quarter of 2011.