Posted In: National Television
Now Apollo is named as a candidate to get the divested Nexstar stations.
A few days ago, FTVLive told you that the private equity firm Apollo was going to be the likely buyer of the 14 Cox stations that are currently up for sale.
But it appears that Apollo is not stopping there.
Leon Black and his Apollo Global Management are said to also be interested in a group of local television stations from Nexstar.
Apparently, these are the stations that Nexstar is interested in spinning off as part of their deal to buy Tribune.
Getting the Nexstar stations gives Apollo the scale it needs to be able to offer the Cox family an equity stake in the combined business, helping them win that auction of the Cox stations.
The plan is to house the Cox, Nexstar and Northwest assets under the same parent entity, but run the Cox stations separately, they said.
In other words, Cox sticks around as part of the new company under Apollo.
Now here is an update on the Apollo/Nexstar talks.
ANother take on the Nexstar talks with the proposed 78% cap
Most of a dozen broadcast groups, including Nexstar and Tribune, have told the FCC, in a Hippocratic Oath approach to deregulation, to first do no harm to the current “status quo” audience reach cap of 78%.
Actually, the cap is still 39% for VHFs. But since UHF is the stronger, more valuable, signal in the digital age, and an owner can, if it had only UHF stations, reach up to 78% of the national audience given the 50% UHF discount, making it a straight 78% across the board is the least the FCC should do, they argue. The most would be to eliminate the cap, but they focus on what they say is the least it should do.
That came in a filing Monday (March 11) by ION, Univision, Trinity, Nexstar, Tribune, Word of God Fellowship (Daystar Television), Northwest Broadcasting, Ramar Communications, Meruelo Media, Ellis Communications, and Entravision.
Some have suggested raising the cap only to 50%, which these groups say is just not enough.
“Limiting broadcasters’ potential audience reach based on the crude proxy of total Nielsen Television Households is an arbitrary, unfair restraint on their ability to compete with increasingly national, and indeed global, players in the television programming industry,” they said. “If the Commission nevertheless chooses to maintain a cap, in the absence of an empirical basis for any numerical limitation, it should at least preserve Congress’ determination and intent based on its review of the video distribution market nearly 15 years ago, i.e. 78%.”
An Update on the Nexstar/Tribune talks.
Fox is out of the Running for Nexstar stations.
Here are the relevant press releases…
(Of note is that Nexstar is still trying to spin off some stations in Indianapolis.)
Update on the Nexstar/Tribune talks
Updates on the Nexstar talks
A black-owned TV company sued Nexstar Media Group on Wednesday, accusing the company of sabotaging its efforts to operate independently.
Marshall Broadcasting Group owns three Fox affiliates in Odessa, Texas; Shreveport, La.; and Davenport, Iowa. The company, owned by Pluria Marshall Jr., bought the stations from Nexstar in 2014, as Nexstar was looking to divest in order to win FCC approval for a series of acquisitions.
According to the suit, Nexstar aimed to sell to Marshall, knowing that the FCC would look favorably upon a sale to a minority-owned company. Nexstar went so far as to guarantee the financing to complete the transaction. But the suit alleges that since the deal, Nexstar has sabotaged Marshall’s effort to run the stations.
The suit claims that Nexstar intends to torpedo the value of the stations and then reacquire them, with the hope that “in the current political climate Nexstar will face significantly less regulatory push-back than it did in late 2014.”
Update WISH-TV is proposed to be divested from Nexstar.
Update on the FCC review over Nexstar’s divestments.
- This reply was modified 1 month, 2 weeks ago by Bill Recto.
You must be logged in to reply to this topic.