Thursday, June 28, 2007

Nexstar adds another duopoly

Nexstar Broadcasting's stock in trade, so to speak, has been its use of duopolies- having two television stations in each market. This has been done in many communities by having Mission Broadcasting act as a front, buying a station then turning over the entire operation to Nexstar.

That process is the one being used in the Joplin market with Nexstar station KSNF and Missions' KODE, and in Springfield, with Nexstar's KSFX and Mission's KOLR.

Today, Nexstar announced another joint operation with Mission, this one in the Monroe, La./El Dorado, Ark. market:

Nexstar Broadcasting Group, Inc. (NASDAQ: NXST) announced today that, contingent upon the completion of the acquisition of KTVE-TV by Mission Broadcasting, Inc., which is expected to occur in the fourth quarter of 2007, it will enter into a local service agreement (“LSA”) with Mission for KTVE-TV, the NBC affiliate serving the Monroe, Louisiana/El Dorado, Arkansas market.

Mission Broadcasting recently entered into a definitive agreement, subject to FCC approval, to acquire the assets of KTVE-TV for approximately $7.7 million from Piedmont Television, which Mission intends to fund with borrowing from its existing $15 million revolving credit facility.

Nexstar presently owns KARD-TV, the FOX affiliate in the Monroe, Louisiana/El Dorado, Arkansas market, which is operated under a local service agreement with KTVE-TV. Upon commencement of the LSA, Nexstar will own, operate, program or provide services to more than one station in 18 of the 29 markets where it operates. In addition, the new local service agreement represents the 50th television station that Nexstar owns, operates, programs or provides sales and other services to. According to Nielsen Media 2006-2007 Local Market Estimates, Monroe, Louisiana/El Dorado, Arkansas is the 135th largest television market in the country. Through various local service agreements with Mission, Nexstar currently provides sales, programming and/or other services to 15 television stations that are owned and operated by Mission.


Anonymous said...

Piedmont is the same company that sold KODE to Nexstar. Nexstar & Piedmont were already in a JSA between the two stations in Monroe; the only thing changing is the ownership...the rest is already done.

Interestingly, the only duopoly of Nexstar's 18 JSAs that hasn't merged into the same building and newsroom is in Joplin. Wonder why.

Anonymous said...

Hooray for more debt!