Nexstar Media Group completed its $4.1 billion purchase of Chicago-based Tribune Media Thursday, creating the nation’s largest local TV station group and moving WGN’s TV, radio and cable stations under the Dallas company’s ownership.
The deal, which was approved by the Federal Communications Commission on Monday, was valued at about $7.2 billion including the assumption of Tribune Media’s outstanding debt, Nexstar said in a news release Thursday.
The combination creates the nation’s largest pure-play local broadcast television and digital media company, with national coverage and reach to approximately 39% of U.S. television households (reflecting the FCC’s UHF discount).
Nexstar will benefit from increased operational, geographic and economic diversity and scale as a result of Tribune Media’s diverse portfolio of media assets including owned or operated broadcast television stations in major U.S. markets; compelling local news and entertainment content; significant broadcast distribution; ownership of WGN America, a growing national general entertainment cable network; a 31.3% ownership stake in TV Food Network, a top tier cable asset; and equity holdings in several digital media businesses.
Nexstar also announced that upon closing the Tribune Transaction it completed the previously announced divestitures of 21 television stations for total consideration of approximately $1.33 billion (inclusive of a purchase price adjustment for two Indianapolis stations sold to Circle City Broadcasting). The company is planning to use the $1.33 billion in gross proceeds to help fund the Tribune acquisition and reduce debt.
The combined company — after the required divestitures — will be able to reach more than 69 million local TV households with 197 TV stations in 115 markets, Nexstar said Thursday. Los Angeles and Chicago are its largest markets.
The “acquisition of Tribune Media increases Nexstar’s geographic diversity and audience reach with national coverage and an expanded presence in the top 50 (markets),” Perry Sook, chairman and CEO of Nexstar, said in the release.
Nexstar, which launched just over 20 years ago with the purchase of a single TV station in Scranton, Pa., had grown into a broadcasting behemoth by acquiring stations in mostly small and midsize markets across the U.S.
The company said Thursday it expects to see $185 million in operating savings in the first year through corporate overhead and station level expense reduction. Nexstar has more than 13,000 employees after the Tribune Media acquisition.
Nexstar also announced that three former members of Tribune Media’s senior management team have joined Nexstar:
- Sean Compton has been named Executive Vice President, WGN America, WGN Radio and Director of Content Acquisition. He is responsible for the management of these former Tribune Media properties, as well as the digital multicast television network, Antenna TV and will oversee Nexstar’s programming acquisitions across all television platforms
- Dana Zimmer will serve as Executive Vice President and Chief Distribution and Strategy Officer. In her new role, Ms. Zimmer is responsible for the distribution and monetization of Nexstar’s broadcast and television content portfolio to cable, satellite, telco and digital media distributors. She will also manage relationships with Nexstar’s network partners at FOX, CBS, NBC, ABC and The CW.
- Gary Weitman has been named Executive Vice President and Chief Communications Officer, responsible for Nexstar’s internal and external communications, media relations, employee communication and the company’s intranet and its website, nexstar.tv.
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