Tuesday, October 07, 2008

KARK's Parent Buys LR Equity Station

Source: TV Newsday Nexstar Broadcasting Group announced today that it is buying MNT affiliate KWBF Little Rock, Ark. (DMA 56), for $4 million from Equity Broadcasting Corp.

The proposed acquisition will give Nexstar a duopoly in the market; it also owns KARK, the NBC affiliate.

Upon completion of the acquisition Nexstar will own, operate, program or provide services to more than one station in 19 of the 29 markets in which it operates. KWBF will be the 51st television station that Nexstar owns or for which it provides sales, programming and other services.

The seller, Equity, has been selling stations and its interest in diginet Retro Television Network this year to resolve financial troubles.

Commenting on the agreement, Nexstar Broadcasting Group President-CEO Perry A. Sook said, "This transaction reflects Nexstar's long-term strategy of identifying accretive acquisitions and prudently expanding our portfolio by operating multiple stations in concentrated geographic areas. Under Nexstar's ownership, KWBF-TV will realize additional retransmission revenues and we'll achieve operating and financial synergies between KARK-TV and KWBF-TV. Post-closing, our immediate strategies will focus on leveraging our existing local sales teams, award-winning local news and e-Media operations across both stations. On a pro-forma basis the purchase price represents a multiple of less than six times the last twelve months' cash flow. As such, the acquisition is expected to be accretive to the company which will allow for further balance sheet de-leveraging."

Nexstar intends to finance the acquisition through cash on hand. Pro-forma for the transaction, Nexstar said it is on track to end 2008 with a total leverage ratio of approximately 6 times compared to its permitted leverage covenant of 6.5 times at Dec. 31, 2007.

The transaction, which is subject to FCC approval, is expected to close in the first half of 2009.

22 Comments:

At 6:19 PM, October 07, 2008, Anonymous Anonymous said...

Just what we needed ... another station to carry the "Razorback Nation" and the "Pig Trail."

 
At 6:34 PM, October 07, 2008, Anonymous Anonymous said...

perry sook is the devil

 
At 12:14 AM, October 08, 2008, Anonymous Anonymous said...

Does this mean Doug Krile is making a comeback?

 
At 12:25 AM, October 08, 2008, Anonymous Anonymous said...

Equity looks like a sinking ship. For sorry for whoever works there.

 
At 6:43 AM, October 08, 2008, Anonymous Anonymous said...

looks like we'll be getting another newscast in the market!

 
At 9:29 AM, October 08, 2008, Anonymous Anonymous said...

You bet, more news and hopefully a soon end to Unreliable Sources.

 
At 11:27 AM, October 08, 2008, Anonymous Anonymous said...

Hey Nexstar! Instead of buying more stations, how about paying your current employees better, and fixing the run down, outdated, and barely operating equipment your currently have! Duct tape and superglue will only hold that crap together for so long...

 
At 6:19 PM, October 08, 2008, Anonymous Anonymous said...

How can Nexstar afford another station??? Nexstar stock was 1.57 at close today

 
At 9:07 PM, October 08, 2008, Anonymous Anonymous said...

You obviously know nothing about money. Their stock price has nothing to do with how much money they have when it comes to spending $4 million. If that was the case then all broadcasters would be broke, Have you seen anyones stock price?

 
At 8:30 AM, October 09, 2008, Anonymous Anonymous said...

I work for Nexstar so I know what kinda of money problems they have!

 
At 12:16 AM, October 10, 2008, Anonymous Anonymous said...

KATV better get that new tower built quickly! Aren't they still using the 42-2 DT channel from KWBF to send their signal to cable providers? When Nexstar does the LMA with KARK/KWBF before the official sale's approval, I bet they'll kick KATV off the subchannel first thing. That'll leave KATV with only the Comcast feed to Little Rock viewers.

 
At 8:45 AM, October 10, 2008, Anonymous Anonymous said...

Ouch, never thought about the tower thing. Excellent point.

 
At 10:58 AM, October 12, 2008, Anonymous Anonymous said...

The tower equipment alone is probably worth 4 mil.

 
At 1:25 PM, October 12, 2008, Anonymous Anonymous said...

Yes, it is amazing that Nexstar is still out there buying up stations. The stations they already own and/or manage, still rely on equipment is from the 1960's and 1970's.

 
At 5:13 PM, October 12, 2008, Anonymous Anonymous said...

"KATV better get that new tower built quickly! Aren't they still using the 42-2 DT channel from KWBF to send their signal to cable providers? When Nexstar does the LMA with KARK/KWBF before the official sale's approval, I bet they'll kick KATV off the subchannel first thing. That'll leave KATV with only the Comcast feed to Little Rock viewers."

Is channel 42.3 at 720i. Looks pitiful.

 
At 6:36 PM, October 12, 2008, Anonymous Anonymous said...

Hey, let's add more subs and reduce the pic resolution as much as possible.

Who watches THV-2?

Or, 42-2?

Or 38-2?

Or any other sub?

 
At 1:21 AM, October 13, 2008, Anonymous Anonymous said...

How many people has Equity let go this year? 30? 40? This market is strewn with the scraps of an overbloated, overhyped bad model of a broadcast machine that's coming down faster and harder than the Giant falling off Jack's beanstalk.

 
At 1:23 PM, October 14, 2008, Anonymous Anonymous said...

nexstar found the money to cough up 4 million for a BS station yet can't contribute to 401(k)s, pay their employees better, have a full staff, etc. Good one Deathstar

 
At 11:05 AM, October 15, 2008, Anonymous Anonymous said...

Equity is a sinking ship and it will continue to sink as long as they have Neal Ardman (AKA Gary Lee Robbins) running it. Some say Perry Sook is the devil, well they are wrong. Perry is an angle compared to Neal. I don't see how the powers that be at equity allow this slime to stay. He lies, cheats and steals to and from everyone. Until he is gone equity will continue to sink.

 
At 2:53 PM, October 15, 2008, Anonymous Anonymous said...

Ardman is not going anywhere any time soon. He, along with everyone in "Arkansas Media", built binding long term management deals for themselves into the fabric of the company before Equity Broadcasting became Equity Media as well as before EMDA sold RTN to Luken. Ardman's current deal is for 36 months at 1.08 million. Your statement that "Until he is gone equity will continue to sink" is 100% fact. Their debt is already about the same amount as their assets and there is a class action law suit from their shareholders coming down the pipe. It won't take 3 years to sink that ship. Once it goes down, he's Luken's problem.

 
At 7:44 AM, October 17, 2008, Anonymous Anonymous said...

If Equity is hurting for money so bad they should put Gary Lee in a dunk tank and charge ten bucks a ball. I would gladly drop a grand on that.

 
At 12:56 PM, October 18, 2008, Anonymous Anonymous said...

7:44, you're not alone.

 

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