Nexstar Broadcasting Strikes Definitive Deal to Divest Two Stations in Two Markets for $270 Million

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Nexstar Broadcasting Group, Inc.
NXST
and Media General, Inc.
MEG
revealed a definitive deal to sell two stations in two markets for $270 million in cash after the former acquired the latter. According to the companies, the two stations were WBAY-TV, in Wisconsin market (DMA #68), and KWQC-TV, and Iowa market (DMA #101), to Gray Television Group, Inc., a fully-owned subsidiary of Gray Television, Inc.,
GTN
. Nextar and Media General struck a definitive merger deal on January 27 last paving the way for the acquisition of acquiring all outstanding shares of the latter. The companies indicated that the planned divesture reflected nexstar's stated intention to sell some television stations to comply with the FCC local, as well as, national television ownership rules and to get approval of the FCC and DOJ for the merger. The sale of the two TV stations to Gray is subject to FCC approval, other regulatory approvals, the closing of the Nexstar / Media General transaction and other customary closing conditions. The companies expect the transaction to be completed on, or about the time of, the closing of the Nexstar / Media General transaction, which is expected later this year. Wells Fargo Securities, LLC served as the lead financial advisor while Deutsche Bank Securities Inc. served as co-advisor for Nexstar in connection with the proposed station sale. On Friday, NXST, MEG, and GTN stocks traded 1.29 percent, 0.30 percent and 2.26 percent down respectively.
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Posted In: NewsAsset SalesM&APress Releases
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