IRVING, Texas - Nexstar Media Group, Inc. (NASDAQ: NASDAQ:NXST) announced today its plans to acquire WBNX-TV/TV55, a television station in Cleveland, Ohio, from Winston Broadcasting Company. This move will establish a duopoly for Nexstar in the Cleveland market, complementing its current ownership of WJW-TV (FOX).
The acquisition will position WBNX-TV as a CW Network affiliate starting September 1, 2025. The completion of this transaction is contingent upon customary regulatory approvals and is anticipated to close in 2025. Nexstar anticipates that the acquisition will be accretive to its operating results once WBNX-TV transitions to a CW affiliation. The financial details of the deal remain undisclosed.
Andrew Alford, President of Nexstar’s broadcasting division, noted the strategic value of the acquisition, stating, "The acquisition of WBNX-TV strengthens our presence in Cleveland, a top-20 television market, and in the political battleground state of Ohio. WBNX-TV will complement our existing operations at WJW-TV, the local news leader in Cleveland, by diversifying our programming for viewers and advertisers with the addition of CW sports and entertainment programming."
Nexstar Media Group, a leading diversified media company, produces and distributes local and national content across television and digital platforms. It operates America's largest local television broadcasting group, which includes 200 owned or partner stations in 116 U.S. markets, reaching an audience of 220 million people. Nexstar also owns The CW, a major broadcast network, and holds a 31.3% stake in TV Food Network.
The acquisition is part of Nexstar's ongoing efforts to enhance its portfolio and reach within key markets. This information is based on a press release statement and has not been independently verified.
In other recent news, Nexstar Media Group has seen significant developments. The company's President, Dennis Miller, will step down from his role at the CW Network, transitioning to an advisory role through the end of the year. Under Miller's leadership, the network adopted a strategic focus on live sports and entertainment, leading to record ratings. This shift, combined with the launch of game shows like Trivial Pursuit and Scrabble, has contributed to Nexstar's recent success.
In the financial realm, both Benchmark and Guggenheim have adjusted their price targets for Nexstar. Benchmark decreased its target from $225 to $215, maintaining a Buy rating, while Guggenheim reduced its target from $200 to $198. These adjustments reflect minor issues that have affected Nexstar's fundamentals and a decrease in non-political advertising revenue.
Nexstar has also made changes to its executive team, announcing the departure of Michael Strober, its Executive Vice President and Chief Revenue Officer. This move is part of an initiative to streamline the company's organizational structure.
On the earnings front, Nexstar has achieved record total net revenue and the highest quarterly distribution revenue for three consecutive quarters. This success has been bolstered by strategic partnerships with major sports leagues and the successful launch of NewsNation. Additionally, Nexstar's Board of Directors has welcomed Ellen Johnson and approved a substantial $1.5 billion share repurchase authorization.
InvestingPro Insights
Nexstar Media Group's acquisition of WBNX-TV aligns well with its strong financial position and growth strategy. According to InvestingPro data, Nexstar boasts a market capitalization of $5.62 billion and a P/E ratio of 13.57, indicating a potentially undervalued stock relative to its earnings. This acquisition could further enhance the company's value proposition.
InvestingPro Tips highlight Nexstar's commitment to shareholder returns. The company has raised its dividend for 11 consecutive years and currently offers a dividend yield of 3.95%. This consistent dividend growth, coupled with aggressive share buybacks, demonstrates management's confidence in the company's financial health and future prospects.
The acquisition of WBNX-TV is likely to contribute positively to Nexstar's already impressive financials. With a revenue of $4.99 billion in the last twelve months and an EBITDA of $1.41 billion, Nexstar has shown its ability to generate substantial cash flows. The company's operating income margin of 18.44% further underscores its operational efficiency.
Investors considering Nexstar might be interested to know that InvestingPro offers 8 additional tips for this stock, providing a more comprehensive analysis of the company's potential. These insights could be particularly valuable in light of Nexstar's strategic expansion in the Cleveland market.
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