Friday, June 21, 2013

Nexstar Wants More

Nexstar Broadcasting is wanting to acquire even more stations.  According to an article from Reuters the broadcaster could spend up to 650 million dollars on acquisitions over the next several years.  According to the article its next target could be stations run by Local TV LLC.  Nexstar head Perry Sook told Reuters, "At the right price I think we would be interested in a number of those assets but certainly not all."

51 Comments:

At 11:42 AM, June 21, 2013, Anonymous Anonymous said...

Fort Smith/Fayetteville: KFSM = KNWA & KFTA?

Memphis: WREG (CBS) = WATN (ABC), WLMT (The CW), & WJKT Jackson (FOX)?

 
At 11:53 AM, June 21, 2013, Anonymous Anonymous said...

Sad, just sad.

 
At 11:55 AM, June 21, 2013, Anonymous Anonymous said...

Translation: Does that mean KFSM & KXNW (Local TV) will be owned by the same people as KNWA & KFTA (Nexstar)?

Same in Memphis. Does that mean WREG (Local TV) will be owned by the same people as WATN, WLMT, & WJKT (Nexstar)?

 
At 1:27 PM, June 21, 2013, Anonymous Anonymous said...

Nexstar is the zombie of the broadcasting industry feeding on acquisition revenue to stay alive.

 
At 1:38 PM, June 21, 2013, Anonymous Anonymous said...

More consolidation, more lost jobs, and the band played on.

 
At 1:57 PM, June 21, 2013, Anonymous Anonymous said...

Aha, there's those key words. "More lost job."

 
At 2:20 PM, June 21, 2013, Anonymous Anonymous said...

Nexstar is ruining good television station.

 
At 2:20 PM, June 21, 2013, Anonymous Anonymous said...

Make that.. Nexstar is ruining good television stations..

 
At 4:38 PM, June 21, 2013, Anonymous Anonymous said...

This is a sure sign the beginning of Nexstar is closer than ever before from a business standpoint.

 
At 4:38 PM, June 21, 2013, Anonymous Anonymous said...

^oops...meant to type "beginning of the end". It's about to unravel.

 
At 6:19 PM, June 21, 2013, Anonymous Anonymous said...

HA, good one 1:27. LMAO!

 
At 6:45 PM, June 21, 2013, Anonymous Anonymous said...

This is all an illusion...take note in the article, in the same breath Sook says he'd sell Nexstar the Deathstar for the right price. He's tried to sell it twice since 2007.
More importantly, take note of this...Nexstar the Deathstar is way over leveraged. Debt-to-asset ratio more than 90 percent. The company has been buying stations on credit so to speak that it cannot pay off. In other words, this is house of cards that can collapse at any minute if one or two lenders calls in its notes.

 
At 9:31 PM, June 21, 2013, Anonymous Anonymous said...

Yes, and yet they are allowed to continue without question.

 
At 11:25 PM, June 21, 2013, Anonymous Anonymous said...

NEXSTAR BUBBLE:
Should be no secret that Nexstar is operating purely on cash-flow, hoping to keep one step ahead of debt with revenues. The stock is on an uptick and so with that they hope to create enough "value" to become attractive for a buy-out. But it would be a helluva buy-out considering how much debt they have. My take is that they'll sell off in chunks because who in their right mind would want to absorb so much debt?

Any idiot knows that stations are bought/sold based on revenue multiples.... if a station nets $10 mil a year and owes 30...the formula is anything from 5 to 7X the annual net... but at well over half-a billion..yep A BILLION... who would want to pay out for that kind of deal?

It's a bubble folks..plain & simple...Perry Suck..er...Sook is just a feather-merchant, selling more fluff than fact.

 
At 5:16 AM, June 22, 2013, Anonymous Anonymous said...

Deathstar to buy Local TV LLC? Aint going to happen...lmao

 
At 10:42 AM, June 22, 2013, Anonymous Anonymous said...

11:25 pm is...pardon the pun...right on the money with that analysis of Nexstar's strategy.

 
At 11:07 AM, June 22, 2013, Anonymous Anonymous said...

I agree and disagree. The debt ratio is big but it's getting smaller. If you compare the ratio to 5 yrs ago, it is getting smaller. This business is operated now like so many others. It's value on paper. The only upside is the cash flow. Very few industries operate with this kind of cash flow. Call it a bubble if you want to understand its a better business model than most American business you pass driving down the street.

 
At 1:43 PM, June 22, 2013, Anonymous Anonymous said...

True...but when your assets to liabilities in broadcast are what? Cash-flow? It's all based on the whims of advertising spot rate. The commodity is air-time and that value swings wildly.

 
At 1:53 PM, June 22, 2013, Anonymous Anonymous said...

Exactly 1:43. You can run the same spot for the same advertiser all day, and there can be as much as a $1,200 difference depending on the time of day that spot airs.

 
At 6:05 PM, June 22, 2013, Anonymous Anonymous said...

i hope not WREG is A Great Station the best in Memphis the Traffic Reporter on Weekday Mornings is sexy

 
At 7:04 PM, June 22, 2013, Anonymous Anonymous said...

Cash flow in theory is the best asset. It's accounting 101. Any station or ownership group is based off of the ad sales. That's the asset.

 
At 7:24 AM, June 23, 2013, Anonymous Anonymous said...

ZZZZZZZZZZZZZZZZZZ

 
At 2:14 PM, June 23, 2013, Anonymous Anonymous said...

It's interesting this scam has gone as long as it has. I wake up every day expecting to find that Nexstar's imploded and become the latest Enron, WorldCom, HealthSouth, ect...

 
At 6:39 PM, June 23, 2013, Anonymous Anonymous said...

Wait until Sinclair hits Little Rock.

 
At 1:12 AM, June 24, 2013, Blogger James Cieloha said...

This comment has been removed by the author.

 
At 1:15 AM, June 24, 2013, Blogger James Cieloha said...

I would favor Nexstar/Mission grabbing WPMI/WJTC, WSYT/WNYS, WYZZ, KRCG, KHQA, KTVO, KEYE, WOAI, and KFDM/KBTV from Sinclair with Sinclair grabbing KLRT/KASN, WLYH and WUHF from Nexstar/Mission.

Nexstar keeps and retains KMSS/KSHV, WEHT/WTVW with WTVW regaining the FOX affiliation while Nexstar trades WEVV and keeps the CBS and MYNET affiliations for KXAN/KNVA/KBVO/ KBVO CD with KXAN keeping the NBC affiliation, KNVA keeping the CW affiliation, and KBVO/KBVO CD keeping the MYNET affiliation from LIN. Nexstar ought to also have KOZL regaining the FOX affiliation while KRBK keeps it's MYNET affiliation.

I would consider a 3 way swap between NBC, Media General, and Nexstar with NBC grabbing KRON as an NBC O&O and the station is housed with KSTS in San Jose, Nexstar grabbing KNTV as a MYNET affiliate or be an independent and share operations with KRON in San Jose until building a solo building for KNTV, and Media General grabbing WCWJ.

 
At 7:31 AM, June 24, 2013, Anonymous Anonymous said...

Yeah... what he said.

 
At 12:31 PM, June 24, 2013, Anonymous Anonymous said...

A bit off topic but did anyone else notice Lauren Clark is back on the air with Fox now?

 
At 12:32 PM, June 24, 2013, Anonymous Anonymous said...

A bit off topic but did anyone else see that Lauren Clark has been hired by kark/klrt? today was supposedly her first day on air

 
At 12:50 PM, June 24, 2013, Anonymous Anonymous said...

Who is Lauren Clark? What does she do?

 
At 1:56 PM, June 24, 2013, Anonymous Anonymous said...

@ 2:14 PM I fully agree.

 
At 3:30 AM, June 25, 2013, Anonymous Anonymous said...

To an earlier post, it would be grrrrreat to see Nexstar go belly up ! Who watches local news ? They faded to black years ago.

 
At 9:44 AM, June 25, 2013, Anonymous Anonymous said...

Spoken like someone who's under 35.

 
At 12:09 PM, June 25, 2013, Anonymous Anonymous said...

Nexstar is riding the wave of debt like a surfer on the pipeline... hoping ad revenues keep enough momentum so they can reach the beach without wiping out from being too aggressive with shooting the tube.
At the end of the day, it's all about stock valuation, receivables, upfront buys and quarterly earnings.
Those at the top will come out fine and they know it. But as far as the company goes, it will either merge and/or be acquired at somepoint or sell off in chunks.
Sign o' the times. It really don't much matter what anyone else thinks or says. It's who is left standing at the end of the day with the most cash in hand and a clear path to the door.

 
At 1:24 PM, June 25, 2013, Anonymous Anonymous said...

Lots of palms getting greased these days

 
At 8:35 PM, June 26, 2013, Anonymous Anonymous said...

You're right. Lots of palms are being greased, but we're the ones getting screwed, and without the common courtesy of a reach around.

 
At 10:47 PM, June 26, 2013, Anonymous Anonymous said...

All local LR stations run the same stories (usually: robberies, shootings, murders and bad car wrecks) in the same order and run commercials at the same time. It's like . . . would someone change up the format of at least one station to break away from this same old news show? When the police and fire go digital and use privacy mode the stations will not be able to hear the calls and will be forced to go out and look for news. Like they did decades ago.

 
At 10:12 AM, June 27, 2013, Anonymous Anonymous said...

And leave an air conditioned newsroom? Ewe gross.

 
At 6:17 AM, June 28, 2013, Anonymous Anonymous said...

OMG! You mean I might have to cross the street and walk up to that building on top of the hill with that white dome on it. Like WTF, that building is old, what could possibly be interesting in there. LOL. These cool kittens on Facebook are more newsworthy.

 
At 7:16 AM, June 28, 2013, Anonymous Anonymous said...

Police radio communications went digital a few years ago. They are not going to be private. They are public airwaves and considered public information. But I do agree the reporters need to get out of the newsroom and work. Local news is going downhill fast.

 
At 9:45 AM, June 28, 2013, Anonymous Anonymous said...

Ask the people of Russellville if their city/county police communications are public. They are now on AWIN but all radio traffic is encrypted.

LR or Jacksonville hasn't mentioned encryption on theirs when they go to AWIN. But it could easily be done once they have all of their radios installed.

 
At 3:07 PM, June 28, 2013, Anonymous Anonymous said...

Newsrooms have AWIN radios.

 
At 9:39 PM, June 28, 2013, Anonymous Anonymous said...

They'll have to be reprogrammed when LR/Jax goes fulltime on AWIN. New talkgroups & tower sites.

 
At 1:40 AM, June 29, 2013, Anonymous Anonymous said...

So newsrooms have AWIN radios. Great! I was worried that there would be no robbery, fatal car wrecks or murder stories on the news.

 
At 2:18 PM, June 29, 2013, Anonymous Anonymous said...

Hey dipshit, that's called news and if you think otherwise you need not be in this business.

 
At 9:05 AM, July 01, 2013, Anonymous Anonymous said...

Television news is a joke these days. Thirty minutes of time in which to sell commercials. Having to resort to smutty talk is indicative of your intelligence or lack thereof.

 
At 7:36 AM, July 02, 2013, Anonymous Anonymous said...

The morning shows are really horrible.

 
At 10:58 AM, July 02, 2013, Anonymous Anonymous said...

That's not just a Little Rock thing.

 
At 8:59 AM, July 10, 2013, Anonymous Anonymous said...

How are the July sweeps going for the Little Rock stations? Anything interesting or new happening?

 
At 12:14 AM, July 15, 2013, Anonymous Anonymous said...

No. Same old same old. Getting worse every week in talent and technology.

 
At 10:58 AM, July 15, 2013, Anonymous Anonymous said...

"Nexstar wants more" couldn't be a more accurate description. They will always want more. This day and this hour mark my two year anniversary of being laid off from Nexstar. I refer to it as my day of freedom. It is amazing how things have improved for me professionally compared to where I was two years ago today. Going from a job I loved at a station I hated working, to a job I love with people I really like and will be retiring with, and with a full pension. It's amazing really.

 

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