IRVING, TEXAS and LAS VEGAS—Nexstar Broadcasting Group announced it entered into a definitive agreement to acquire the assets of KLAS-TV, the CBS affiliate serving the Las Vegas, Nevada market for $145 million plus working capital from Landmark Media Enterprises, LLC. The proposed acquisition will expand the Nextstar portfolio to 110 television stations serving 58 markets in 23 states, reaching approximately 20.3 million television households or 18 percent of U.S. television households.
“The station represents Nextstar’s entry into the Las Vegas, market—DMA No. 42—and should help the company benefit not only from the Nevada U.S. Senate Race, but also from big presidential spend as Nevada is expected to be a swing state again in 2016,” said Marci Ryvicker of Wells Fargo in an analyst note issued Friday morning. She said the acquisition is expected to add roughly $24 million to pro-forma blended 2015-16 broadcast cash flow and 40 cents to free cash flow
Nexstar said it intends to finance the station acquisition with cash generated from operations and borrowed under its senior credit facilities and/or additional capital markets activities. The transaction is subject to FCC approval and other customary approvals, and is expected to close in the first half of 2015.
Nexstar Broadcasting Group President and CEO, Perry A. Sook, said that “Las Vegas represents a natural complement to our existing operations in the Southwestern region of the United States. KLAS-TV is presently operated by a single station owner, therefore financial results under Nexstar’s ownership will benefit from our scale, expense synergies and proven operating management disciplines. Finally, with the post-closing implementation of Nexstar’s strong local news programming, KLAS will be well-positioned to capitalize on political spending in 2016 including the Presidential election and the Nevada U.S. Senate race.”
