A large media acquisition that closed Tuesday creates the second-largest TV station group in the country. TVNewsCheck reports that Nexstar Broadcasting Group closed its $4.6 billion acquisition of Media General just six days after the FCC approved the deal.
The merged company will be known as Nexstar Media Group.
“The deal swells Nexstar’s portfolio to 171 full-power stations in 100 markets covering nearly 39% of TV homes. The new stations include 15 in the top 50 markets,” TVNewsCheck reports. “Those numbers would be higher, except that Nexstar had to spin off 13 stations for $548 million to comply with FCC ownership limits.”
Nexstar CEO Perry Sook commented: “Our acquisition of Media General marks a significant milestone in Nexstar’s 20-year history of growth, which has been predicated on our unwavering commitment to deliver exceptional service to the local communities where we operate and value to our shareholders.
“Financially, the transaction is expected to more than double our [annual revenue to $2.3 billion] and adjusted EBITDA, and Nexstar Media Group expects to generate average annual free cash flow in the 2016-17 cycle of approximately $565 million.”