The $20M transaction that will send Liberty Media’s WFRV-TV and WJMN-TV, the CBS affiliates serving the Green Bay, Wisconsin and Marquette, Michigan markets to Nexstar Broadcasting Group has made it to the finish line. The FCC confirmed that Nexstar will be able to continue operating WJMN as a satellite of WFRV.
It was also announced that Joseph Denk has been named Vice President and General Manager of the stations, which are both CBS affiliates.
Nexstar’s Perry A. Sook commented, “The acquisition of WFRV and WJMN brings immediate strategic and financial benefits to Nexstar as it expands and diversifies our station portfolio, is de-leveraging on a debt-to-cash-flow basis and marks our entrée to Wisconsin and Michigan which complement our existing Midwest operations. Under Nexstar’s ownership both stations will realize additional retransmission revenues as well as synergistic operating improvements. As such, the purchase price for the two stations is less than five times the average 2010/2011 pro-forma projected cash flow. On a pro-forma basis the acquisition is immediately accretive and we expect WFRV and WJMN to contribute to our results for the second half of 2011.”
The two stations were already had a flagship/satellite relationship, but any time such a pairing is sold the FCC revisits the waiver that makes it possible. As is customary, the FCC found that the conditions that led to the original grant of the waiver were still in force and allowed it to continue.
Sook noted his commitment to both CBS and local service, saying, “In addition to CBS’ strong prime-time offerings, we are committed to bringing Green Bay and Marquette viewers the best local news and locally-produced programming and last week, WFRV, Channel 5, launched the Green Bay area’s first high-definition newscast. With both WFRV and WJMN broadcasting in HD, we have a strong platform for marketing solutions for local and national advertisers which we plan to expand with the launch of Nexstar’s e-Media and mobile offerings through our proven Community Portal model.”
