03.23.2009 04:55 PM
Nexstar to Manage Four Points TV Stations
IRVING, TEXAS: Nexstar Broadcasting Group announced has agreed to operate the seven TV stations owned by Four Points Media Group. Under deal terms, Nexstar receives a management fee of $2 million a year plus annual incentive compensation based on cash flow of the stations. Nexstar (NASDAQ: NXST) is also entitled to a piece of the profit if the stations are sold during the course of the three-year agreement, which provides the company minimum compensation of $10 million.
The relevant Four Points stations include two CBS affiliates--KEYE-TV in Austin, Texas, and KUTV-TV Salt Lake City; two CWs--WLWC-TV in Providence, R.I., and WTVX-TV West Palm Beach, Fla.; one MyNetworkTV Class A--WTCN-CA, and one Azteca Amèrica Class A--WWHB-CA, in Wast Palm; and one RTN--KUSG-TV in Salt Lake City.
The agreement went into effect March 20 and extends through March 31, 2012, with one-year renewal options. Nexstar will oversee sales, promotion, programming alternatives, production, operations, finance, contract administration and human resources.
The agreement puts Nexstar’s owned-and/or-operated TV station count at 52, reaching about 10 million U.S. TV households.
Four Points is the TV station holding company formed by Cerberus Capital Management two years ago when the private equity firm bought the seven stations from CBS. Cerberus holdings include 80 percent of Chrysler. – Deborah D. McAdams