BURBANK, Calif. - The CW Network has announced that Dennis Miller will step down as its Network President on October 31, 2024. Miller, who has been at the helm since Nexstar Media Group, Inc. (NASDAQ: NASDAQ:NXST) took a majority stake in October 2022, will transition to an advisory role through the end of the year.
During his tenure, Miller spearheaded a strategic overhaul of The CW, focusing on live sports and entertainment. This shift in programming strategy led to record ratings for the network, with the introduction of WWE NXT wrestling, NASCAR Xfinity racing, and other sports content like ACC and PAC 12 football, as well as LIV Golf. Additionally, the network's recent launch of game shows such as Trivial Pursuit and Scrabble garnered strong ratings, particularly among adults aged 25-54.
Miller's leadership saw The CW secure long-term contracts with premium live sports, contributing to what he described as "some of the highest ratings The CW has seen in years." Nexstar's Chairman and CEO, Perry Sook, praised Miller's contributions, noting that he was instrumental in broadening the network's programming appeal and enhancing the value of its affiliations.
The CW, known as America's fifth major broadcast network, reaches 100% of U.S. television households and offers a mix of entertainment and sports programming. The CW App provides access to the network's primetime shows, sports events, and a variety of film and television content. Nexstar Media Group owns a 75% stake in The CW and is recognized as the largest affiliate group of the network.
This announcement is based on a press release statement from The CW Network.
In other recent news, Nexstar Broadcasting Group has seen some notable developments. Benchmark recently adjusted its price target for Nexstar, decreasing it from $225 to $215, while maintaining a Buy rating. This adjustment is due to a combination of minor issues that have applied downward pressure on Nexstar's fundamentals, and a decrease in non-political advertising revenue. However, the company has seen benefits from additional sports programming on the CW network.
Nexstar has also undergone significant changes in its executive team. The company announced the departure of Michael Strober, its Executive Vice President and Chief Revenue Officer, as part of an initiative to streamline its organizational structure. Additionally, Guggenheim maintained a Buy rating on Nexstar but adjusted the price target from $200.00 to $198.00 due to changes in the company's third and fourth-quarter financial outlook.
The company has achieved record total net revenue and the highest quarterly distribution revenue for three consecutive quarters. This has been bolstered by strategic partnerships with major sports leagues and the successful launch of NewsNation. Nexstar's Board of Directors has welcomed Ellen Johnson and approved a substantial $1.5 billion share repurchase authorization. These are some of the recent developments at Nexstar.
InvestingPro Insights
As Nexstar Media Group navigates this leadership transition at The CW Network, InvestingPro data provides valuable context for investors. Nexstar's market capitalization stands at $5.54 billion, reflecting its significant presence in the media landscape. The company's P/E ratio of 13.53 suggests a relatively attractive valuation compared to industry peers.
Notably, Nexstar has demonstrated a commitment to shareholder returns. An InvestingPro Tip highlights that management has been aggressively buying back shares, which often signals confidence in the company's future prospects. This is further supported by Nexstar's high shareholder yield, another InvestingPro Tip that aligns with the company's focus on creating value for investors.
The company's dividend policy is particularly noteworthy in light of The CW's strategic shift under Miller's leadership. Nexstar has raised its dividend for 11 consecutive years and maintained payments for 12 years, as noted by InvestingPro Tips. This consistent dividend growth, coupled with a current yield of 4.04%, may appeal to income-focused investors looking for stability amidst the evolving media landscape.
Nexstar's financial health appears robust, with InvestingPro data showing that liquid assets exceed short-term obligations. This financial flexibility could be crucial as the company continues to invest in The CW's programming strategy, particularly in securing long-term contracts for premium live sports content.
For investors seeking a deeper understanding of Nexstar's potential, InvestingPro offers 8 additional tips that could provide further insights into the company's performance and outlook.
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