Nexstar no longer in sales talks


Citing "difficult conditions in the financing markets" Nexstar announced that it has decided to suspend discussions with potential buyers of the company. CEO Perry Sook tells TVBR that a "hiatus" is an accurate description and it is likely that sale talks will resume when the markets improve.

Nexstar announced in May (5/18/07 TVBR #98) that it had retained Goldman Sachs to assist the company in reviewing strategic alternatives, including a sales of the entire company. TVBR estimated that the company would bring over one billion in the auction.

Immediately after the company announcement on Friday, Nexstar's stock price took a nosedive of more than 13%. The stock had already fallen from a high just over 15 bucks in early July to slightly above 10 – and is now back into single digits.

SmartMedia observation: The rumblings in the financing markets have become louder in recent weeks. Tribune allayed fears when it declared that all of the financing is committed for its buyout. And KKR drew headlines in the financial press for holding its bankers feet to the fire for financing commitments they'd made to its deal to buy Dollar General. But for deals not yet done, terms are tightening and financing is becoming harder to get.