Nexstar Media Acquires Two San Diego TV Stations in $35M Deal
May 10, 2023
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This move comes at a time when Nexstar’s stock is on the rise, as it has seen consistent growth in the last few months. Nexstar Media ($NASDAQ:NXST) is a publicly traded company based in Irving, Texas. The acquisition of the two San Diego television stations will bolster Nexstar’s portfolio and bring more content to viewers in the area. The $35 million purchase is expected to close later this year, pending approval from the Federal Communications Commission.
The acquisition of these two stations furthers Nexstar’s goal of becoming a leader in broadcast and digital media distribution. This deal also positions Nexstar to provide more local content and high-quality programming to San Diego viewers.
Market Price
On Monday, NEXSTAR MEDIA announced that it has acquired two San Diego TV stations, CBS 8 and ABC 10, in a $35M deal. Following the announcement, NEXSTAR MEDIA stock opened at $165.7 and closed at $166.0, up by 1.1% from previous closing price of 164.3. The company is said to be the largest-ever local television broadcast company in the United States following this acquisition. This deal is expected to expand NEXSTAR’s television footprint in San Diego and increase the value of its content offerings. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Nexstar Media. More…
| Total Revenues | Net Income | Net Margin |
| 5.21k | 971.1 | 19.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Nexstar Media. More…
| Operations | Investing | Financing |
| 1.4k | 125.2 | -1.51k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Nexstar Media. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 12.68k | 9.91k | 74.46 |
Key Ratios Snapshot
Some of the financial key ratios for Nexstar Media are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.7% | 37.8% | 29.8% |
| FCF Margin | ROE | ROA |
| 23.9% | 34.3% | 7.7% |
Analysis
GoodWhale has recently analyzed the financials of NEXSTAR MEDIA, and have found it to be a strong player in regards to dividend, growth, profitability, and weak in asset. Due to its strong competitive advantage, NEXSTAR MEDIA has achieved stable and high revenue or earning growth. As such, GoodWhale concludes that NEXSTAR MEDIA is classified as a ‘gorilla’ company. Given this information, GoodWhale believes that investors who are interested in companies with strong competitive advantage, high health score and low bankruptcy risk may be interested in investing in NEXSTAR MEDIA. With a high health score of 8/10 with regard to cashflows and debt, NEXSTAR MEDIA is capable of safely riding out any crisis without the risk of bankruptcy. This could make NEXSTAR MEDIA an attractive investment opportunity for investors who are seeking long-term gains. More…
Peers
The company competes with Sinclair Broadcast Group Inc, Fox Corp, and Klassik Radio AG in the provision of local news and entertainment programming.
– Sinclair Broadcast Group Inc ($NASDAQ:SBGI)
Sinclair Broadcast Group Inc is a publicly traded company with a market cap of 1.26B as of 2022. The company operates in the broadcasting industry and owns and operates, programs, or provides sales and other services to television stations in the United States. As of 2018, Sinclair Broadcast Group Inc operated a total of 193 television stations. The company also owns and operates four regional sports networks, a digital program network, and a cable network channel.
– Fox Corp ($NASDAQ:FOXA)
Fox Corporation is an American media company that is primarily involved in the production and distribution of news and entertainment content. The company has a market capitalization of 15.38 billion as of 2022 and a return on equity of 11.49%. Fox Corporation is the parent company of a number of media businesses, including the Fox News Channel, Fox Business Network, Fox Sports, and Fox Television Stations.
– Klassik Radio AG ($LTS:0EXW)
Klassik Radio AG is a German radio station that offers a wide range of classical music. It has a market cap of 22.97M as of 2022 and a return on equity of 14.02%. The company’s mission is to promote the appreciation of classical music and to make it accessible to as many people as possible.
Summary
Nexstar Media Group Inc. has seen a surge in its stock price following the announcement of a $35 million deal to buy two San Diego-based TV stations. It is also expected to provide Nexstar with greater operating scale, diversification of its local news programming and expansion in the Southern California market. With the acquisition, Nexstar plans to leverage its industry-leading local content production capabilities and its advancement in digital media and technology. The company’s efficient operating model, focus on delivering high performance, and prudent capital allocation strategy provide investors with a unique opportunity to capitalize on the potential of their investment.
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