Nexstar to Acquire KSEE Fresno for $26.5 Million

Deal with Granite would mean CBS-NBC duopoly in DMA No. 55

By Michael Malone -- Broadcasting & Cable, 2/6/2013 4:50:06 PM

Nexstar has agreed to acquire KSEE Fresno from Granite Broadcasting for $26.5 million. Nexstar has entered into a time brokerage agreement with Granite to operate the station, an NBC affiliate, immediately.

The acquisition is subject to regulatory approval and is expected to close mid-year.

Nexstar agreed to acquire KGPE, the CBS affiliate in Fresno, late last year.

"KSEE squarely meets our acquisition criteria as it further expands our revenue, scale and operating base, creates another duopoly market for Nexstar and is financially accretive," said Perry Sook, Nexstar president and CEO.

Fresno-Visalia is DMA No. 55. KSEE is the No. 4 revenue station there, according to BIA/Kelsey. KGPE is No. 3.

The KSEE deal was reported the same day that Nexstar announced it was reclaiming the Fox affiliation in Ft. Wayne. Its WFFT had lost the Fox affiliation in 2011, with the Granite station in Fort Wayne, WISE, picking up Fox for its subchannel.

The proposed transaction will result in Nexstar operating one station and/or providing sales and other services to another in 26 of the 41 markets where it operates, assuming the completing of recent acquisitions. Sook said the terms reflect a five times purchase price, offering additional retransmission and operating efficiencies.

"Granite has owned KSEE since 1993 and we have greatly valued the opportunity to serve the communities of California's Central Valley," said Peter Markham, CEO of Granite. "Fortunately, this transaction maximizes value at Granite and will pass on this great asset and a dedicated group of talented employees to a new owner also committed to broadcast excellence."