Thursday, May 17, 2007

KARK, KNWA, KTAL Owner Pondering Sale

Source: Media Week Nexstar Broadcasting Group, owner of 49 TV stations in mid and small-size markets, put itself in play Thursday, engaging Goldman, Sachs & Co. "to assist the company in reviewing strategic alternatives including, but not limited to the sale of the Company."

The company offered no further comment on the matter and will not comment further publicly until the process is completed.

Nexstar’s 49 TV stations are in 29 markets in the states of Illinois, Indiana, Maryland, Missouri, Montana, Texas, Pennsylvania, Louisiana, Arkansas, Alabama and New York. The station group includes affiliates of NBC, CBS, ABC, Fox, MyNetworkTV and The CW and reaches 8.25 percent of all U.S. TV households.

Revenue was up 4.1 percent in first quarter to $62.05 million. Growth was attributed to the company’s acquisition of WTAJ-TV, the CBS affiliate in Johnstown-Altoona, Penn. and WLYH-TV, the CW affiliate in Harrisburg-Lancaster-Lebanon-York, Penn. A leader in encouraging the industry to negotiate hard for increased retransmission consent fees, Nexstar reported retransmission consent revenue was up 27 percent to $2.6 million in cash and $1.2 million in advertising spending. Same station revenue was down 0.5 percent.

26 Comments:

At 1:20 PM, May 17, 2007, Anonymous Anonymous said...

What goes around comes around. KFSM now KNWA maybe?
Could H-A be thinking too?

 
At 1:46 PM, May 17, 2007, Anonymous Anonymous said...

The multiples for stations are so astronomically high anyone in ownership is probably at least thinking about it.

The same company handled the NY Times sale.

 
At 5:28 PM, May 17, 2007, Anonymous Anonymous said...

I worked for Deathstar in Texas and they need to be sold. They own to much, have too many market monopolies, and too damn cheap with their equipment and salary with their staff. Of course I am bitter because they didn't offer me crap in a new contract to stay. Now I work for Gray TV and they are a little better but have their flaws...

 
At 5:30 PM, May 17, 2007, Anonymous Anonymous said...

You work for Gray's Anatomy?

COOL !!!

 
At 10:29 PM, May 17, 2007, Anonymous Anonymous said...

yea those whole market monopolies are a way for them to cut corners and save a little money, that and it degrades the product since nobody is really in competition with other...i mean what's the reasoning to have 3 stations in Wichita Falls, Amarillo, and Utica??

 
At 3:02 AM, May 18, 2007, Anonymous Anonymous said...

Who gets fired first?

 
At 4:40 AM, May 18, 2007, Anonymous Anonymous said...

Gray's Anatomy...lol. At least for a small market we have a satellite live truck. Deathstar told us if we got one out there Lubbock, Abilene, San Angelo and Midland would all have to take turns sharing it. Nexstar puts all their money in the two Arksanas stations and the ones in Wichita Falls while the rest suffer.

They do cut corners. They moved the NBC station across town into our building a little while after I started. Our newsroom was so crowded you couldn't breathe and it was hard to hide a "scoop" story from their staff with them batting their ears toward our side of the newsroom.

There was a rumor right before I left they were trying to aquire Comcorp TV and their stations which would have created even more monopolies.

As for who gets fired first... no telling.

 
At 11:41 PM, May 18, 2007, Anonymous Anonymous said...

This is completely different from the NYT deal. If private equity gets this, and they will because that's who is paying these kind of prices, then there won't be much change of staffing. Bankers want it run like a business that makes money. That's what Nexstar does now. I wouldn't look for big change just investing from new sources.

 
At 9:19 AM, May 19, 2007, Anonymous Anonymous said...

If Perry and Duane ran Nexstar like a business then why are they over $900 million in debt?

You have two guys that don't know what they are doing.

I hope someone buys Nexstar and these two guys stay out of tv.

Come on they cut AP and Neilson from their stations. Then they steal and cheat. They have got go!

 
At 9:55 AM, May 19, 2007, Anonymous Anonymous said...

It is exactly like the NYT deal. Same company handled the transaction. The stations were extremely profitable (the most profitable division of the times company). It went to private equity for huge multiples.

The only difference is that NYT refused to let Nexstar bid on their stations.

 
At 4:35 PM, May 19, 2007, Anonymous Anonymous said...

You are an idiot! Not letting them bid on it wasn't an option. If you could read you would know Nexstar was in on the bid and so was Albritton. The most wealthy companies and individuals are in debt. Debt has nothing to do with it. It's cash flow. Any idea how in debt Donald Trump is? Bill Gates is probably about the only rich guy out there not in debt.

 
At 4:40 PM, May 19, 2007, Anonymous Anonymous said...

You might want to investigate before you leap. Nexstar was not in the bidding for the NY Times group. It had nothing to do with Nexstar's money. The Times announced to its staff early in the process that Nexstar would not be allowed to bid because they were "not a suitable company." You are correct, however, about Albritton. They were part of the process.

 
At 6:41 PM, May 19, 2007, Anonymous Anonymous said...

Let me just say KARK is doing a great job despite horrible owners. If they could get some money behind them, the station would really take off.

 
At 7:06 PM, May 19, 2007, Anonymous Anonymous said...

Clear Channel did the samething when Nexstar try to bid on their stations.

It seems no one wants to do business with Nexstar.

Nexstar does have cash flow and debt problems. They may lose stations because of this problem.

If I was a Nexstar employee I would start to wonder if my checks are going to cash.

But Perry Sooks and Duane Lambers have some awesome homes.

 
At 11:36 PM, May 19, 2007, Anonymous Anonymous said...

I know exactly what was said to the NYT employees and it was never said that Nexstar would not be invited. I'm glad that you agree that Albritton was in on the bidding but I also know that I wouln't want someone like Dale being in charge of the state after all I have read on hear about how he is. I never thought I would defend Nexstar like this but let me say if they are so bad then how is the morale at KARK higher than any other station in town? Everyone slammed them about cable negociations but now that looked like the smart ones. AP being gone has made their News Dept work harder and put on a better product than anyone in town. Oh yea, kicking Neilsen out the door really hurt too. The ratings are now stronger than the day they quit using them. I know a lot of people that work at KARK and I hear nothing but good things coming out of that building. Look in the mirror at the company you work for and tell me why your company is any better.

 
At 11:55 PM, May 19, 2007, Anonymous Anonymous said...

I don't know a lot about the New York Times deal but I do know that Nexstar was the only broadcast company in on the final round for CC. Seems as though you have your information wrong. Nexstar was very close to the final bid on CC. It's documented. Wake you all you Nexstar haters. They are no different than the rest of our companies. They always look out for themselves first and quite honestly they have the right to do that because they have the keys not us.

 
At 10:01 AM, May 20, 2007, Anonymous Anonymous said...

Nexstar made a bid for CC and Mark May told them "NO THANK YOU"

So by the way I look at that CC didn't want to do business with them.

As far as KARK rating being the best in a long time. Well, they could not have gotten worse and they wouldn't know anyway.

Rob has made some good decision with hires and they do have a great product.

 
At 11:18 AM, May 20, 2007, Anonymous Anonymous said...

Well unless you're Mark May then you are wrong. This is what you don't understand, he doesn't get to decide who that sell to at the end. If they were not interested in Nexstar bid then they would've just not took their bid. See what I mean? Your logicmakes no sense. You are also understating the position of KARK. Two years ago they were in 3rd place. Today the market is in a dead heat. Depending on the newscast, all three stations rank 1,2,and 3. It's closer between the 3 than any other time in history.

 
At 9:39 AM, May 21, 2007, Anonymous Anonymous said...

I am Mark May...no but he talks to his employees and treats us with respect.

I don't think he would lie to us unlike Perry Sook!

As far as the market being closer yes it is and that has a lot to do with all four stations in the market.

Each station has its viewers and 4,11, and 16 have all taken their viewers from 7.

I remember in the late 90's you could combine 4 and 11 numbers and they still didn't add up to 7.

7 has not been able to re-catch the magic they once had. I don't know if it's because Bob Steel is gone or Chris May and Karen Fuller left.

If they now hang their hat on Ned, I will just say that everyone now knows that Ned thinks more of himself than the viewers do.

They no longer care for his Xmas songs. Hey Ned get out in the "GREAT UNWASHED" as you call them. Without them your washed up pard!!!!

But I do know now it will be a lot harder for them to ever get back to where they once were.

 
At 11:15 AM, May 21, 2007, Anonymous Anonymous said...

You people are moronic. Clear Channel did not pass on Nextar's bid because they didn't wan to do business with them. They passed on it because it was not the highest one.

 
At 12:18 PM, May 21, 2007, Anonymous Anonymous said...

Please tell me what Perry Sook lied about.

 
At 2:55 PM, May 21, 2007, Anonymous Anonymous said...

When Perry Sook's mouth is moving he is lying.


Perry steals ratings books and doesn't pay for them.

I have had he and Duane Lammers laugh about it and hand me a stolen book.

If you work for Nexstar they have done the same with you and you know.

 
At 3:14 PM, May 21, 2007, Anonymous Anonymous said...

I don't know that to be true but if you are telling the truth and I will give you that then did you take it or quit on the spot? If you didn't quit on the spot that makes you as bad as you say they are.

 
At 4:23 PM, May 21, 2007, Anonymous Anonymous said...

I didn't quit on the spot...I refuse to use the numbers and was fired!!!!!

I am not the first person that this has happened too. Perry and Duane think they can bully anyone that doesn't agree with them.

 
At 5:03 PM, May 21, 2007, Anonymous Anonymous said...

I think you were fired for not producing.

 
At 6:09 PM, May 21, 2007, Anonymous Anonymous said...

Your right Sook and Lammers are sanits.

Keep drinking the kool aid.

 

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