Thursday, May 17, 2007

KSN owner Nexstar Broadcasting may be on the market

Shares of Nexstar Broadcasting were at a three-year high of $13.48 after news that the company has hired Goldman, Sachs & Co., to explore "strategic alternatives" including a possible sale:

Nexstar is seeking to realize value at what could be a near-term peak based on sentiment in the TV sector, RBC Capital Markets analyst David Bank said in a research note.

Bank, who raised his price target on the stock by $2 to $13, said the proximity to a presidential election year and positive momentum in retransmission consent fee negotiations are fuelling investor interest in TV broadcasting.

"We believe NXST could fetch $15/share on an outright sale," Bank said.

Bear Stearns analyst Victor Miller also said he estimated Nexstar's take-out at $15 to $20.

"Nexstar has been in a prolonged acquisition mode and has never been able to sell a property. With its recent aggressive run at Clear Channel's TV stations, it looked like more of the same. But this change of heart should pay off for shareholders," Miller said in a research note.


Nexstar Broadcasting owns KSNF in Joplin and KSFX in Springfield, and operates KODE in Joplin and KOLR in Springfield.

3 comments:

Anonymous said...

It would be interesting to see how a new owenership group would handle two things.
First--Shared services between KODE & KSN and the other markets Nexstar operates them. Joplin is unique in that both stations do not operate out of the same building---others in the Nexstar chain do.

Second--How much current management would be kept? If they are turning a profit...they're likely to stay.

Anonymous said...

Don't be so sure they'd all stay. Back in 98 KODE was churing a fantastic profit. New owners came in and tossed Jerry Montgomery and passed over John Hoffmann for an incompetent out-of-towner.

Hoffmann immediately left for KSN, taking John Emrich, Gary Bandy and a host of others with him. KODE was never the same.

Point is, ownership makes decisions without considering success. Alas.

Anonymous said...

And with Hoffman now, things have never been worse.