Nexstar Selling WEVV For $18.6 Million
Nexstar Broadcasting Group said Monday afternoon that it has entered into a definitive agreement with Bayou City Broadcasting Evansville Inc. (BCBE) for the sale of WEVV, the CBS affiliate in Evansville, Ind. (DMA 104), $18.6 million.
BCBE is a minority-led broadcaster owned by affiliates of Sankaty Advisors LLC, Alta Communications and Bayou City Broadcasting LLC. Bayou City Broadcasting is owned by DuJuan McCoy, who will serve as BCBE’s president-CEO.
Perry A. Sook, chairman, president-CEO of Nexstar, said: “The proposed transaction announced today highlights our focus on completing pending transactions and represents the second time in the last two months that Nexstar has structured an agreement that furthers the FCC’s goal of increasing minority television ownership diversity.”
Nexstar said the sale of WEVV to BCB brings its pending purchase of Communications Corp. of America into compliance with Department of Justice requirements for approval and "will release the pending transaction from hold pending divestiture."
McCoy founded BCB in December 2007 and in January 2008 agreed to purchase seven television stations located in Abilene and San Angelo, Texas. With this purchase, McCoy and BCB became the only African-American company to own and/or operate a Fox Affiliate in the United States and the first African American to own and operate a network affiliated station in Texas.
Wells Fargo Senior Analyst Marci Ryvicker liked the deal: “Given the FCC's mandate to promote diversity in the market place, we are not surprised to see more collaboration between [Nexstar] and minority-led broadcasters in order to get deals through. We are encouraged to see that [Nexstar]'s largest pending deal is close to being approved and view this restructuring as a positive.”
Last month Nexstar announced plans to sell three full-power, Fox affiliates in Shreveport, La.; Odessa-Midland, Texas; and Quad Cities, Iowa, to Marshall Broadcasting Group a newly formed minority-owned media entity owned by Pluria Marshall Jr.
“Nexstar is taking an industry leading role in significantly expanding the diversity of media ownership assets among minority operators and addressing recent proposed FCC regulation changes,” said McCoy. “I am delighted we have been able to structure an agreement for BCBE’s purchase of the Evansville CBS affiliate and would welcome other opportunities to work further with Nexstar or other broadcasters who are committed to supporting minority broadcasters as FCC licensees and owners and operators of television stations.”
Nexstar’s recently announced station divestitures are subject to FCC approval, the consummation of Nexstar’s previously announced agreements to acquire the stock of privately-held Communications Corp. of America and other customary closing conditions, and Nexstar said it expects to complete all announced pending transactions in 2014.
Kalil & Co. acted as the exclusive broker for the seller in this transaction.