Nexstar expands local TV affiliate stable
| 22 November 2014
Nexstar Broadcasting is adding a touch of KLAS, as it were: it plans to acquire KLAS-TV, the CBS broadcast affiliate serving the Las Vegas market, for $145 million plus working capital from Landmark Media Enterprises.
The acquisition will expand the company's portfolio to 110 television stations serving 58 markets in 23 states, reaching approximately 20.3 million television households (18% of the country).
Nexstar said that it intends to finance the station acquisition with cash generated from operations and borrowings under its senior credit facilities and/or additional capital markets activities. The transaction is subject to FCC approval and other customary approvals, and is expected to close in the first half of 2015.
“Nexstar remains opportunistic in expanding our station platform for growth, and the acquisition of KLAS-TV in Las Vegas is consistent with our strategic focus on identifying, executing and integrating accretive transactions,” said Nexstar Broadcasting Group president and CEO Perry Sook.
“Under Nexstar's ownership, we intend to build on KLAS's rich tradition of local programming and local community involvement.”
According to the 2014 BIA Kelsey Television Yearbook the Las Vegas, Nevada DMA is ranked as the 41st largest US television market.
“Las Vegas represents a natural complement to our existing operations in the Southwestern region of the United States,” Sook said. “KLAS-TV is presently operated by a single station owner, therefore financial results under Nexstar's ownership will benefit from our scale, expense synergies and proven operating management disciplines. Finally, with the post-closing implementation of Nexstar's strong local news programming, KLAS will be well-positioned to capitalize on political spending in 2016 including the Presidential election and the Nevada US Senate race.”