- Nexstar Broadcasting (NASDAQ:NXST) has sealed three deals to sell five TV stations, a key step in the company's pursuit of Media General as it runs up against ownership rules.
- The rules have become a key factor in the takeover. A court ruling has ordered the FCC to update the rules it applies to station ownership, whcih may have a definite effect on Nexstar's transaction.
- In one deal it's selling WCWJ (Jacksonville, Fla.) and WSLS (Roanoke-Lynchburg, Va.) to Graham Media (GHC) for $120M.
- It's also selling KADN and KLAF (Lafayette, La.) to Bayou City Broadcasting Lafayette for $40M, and KREG (Denver) to Marquee Broadcasting. KREG currently operates as a satellite station of Nexstar's KREX, but won't after the sale.
- The sales to Graham and BCBL are subject to the closing of Nexstar's transaction with Media General, expected later this year.
- The moves not only help Nexstar meet the 39% cap on TV households, but two of them also present opportunities for minority station ownership.
- Nexstar expects to announce more divestitures shortly.