Nexstar Broadcasting Group has agreed to acquire WFRV Green Bay and WJMN Marquette from an affiliate of Liberty Media Corporation for $20 million. Both are CBS affiliates. The acquisition will increase Nexstar's CBS contingent to 13 stations and expand to 65 the number of stations either owned or operated by the group.
The deal includes $17.5 million of cash, which Nexstar intends to finance through borrowings under its senior credit facility, and Nexstar stock valued at $2.5 million to an affiliate of Liberty Media Corporation.
"The acquisition of WFRV and WJMN highlights Nexstar's role in the industry as a leading consolidator of stations in mid-sized markets through accretive transactions," said Perry Sook, Nexstar president and CEO. "The acquisition allows the company to expand and diversify its station portfolio and presents a new opportunity for the Company to leverage its intellectual capital and operating management. In addition, entering Wisconsin and Michigan represents a natural complement to our existing Midwest operations."
Sook said the stations "will realize additional retransmission revenues as well as synergistic operating improvements."
Nexstar announced it was seeking to raise $50 million to expand its credit facility.
WFRV, in DMA No. 71, booked $12.5 million in 2009, according to BIA/Kelsey, which has not made 2010 numbers available yet. WJMN, in DMA No. 179, took in $2.1 million--miles behind Barrington's market leader.
The transaction, which is subject to FCC approval, is expected to close in the third quarter of 2011.