Nexstar...again

Discussion in 'Corporate Chat' started by tyrannical bastard, Aug 7, 2013.

  1. tyrannical bastard

    tyrannical bastard Assistant VP of Aspect Ratio Correction

    Joined:
    Dec 3, 2006
    Messages:
    1,772
    Likes Received:
    640
    1 person likes this.
  2. hathawaynson2

    hathawaynson2 Managing Editor

    Joined:
    Mar 21, 2013
    Messages:
    388
    Likes Received:
    32
    Its about time that we had a feed for Nexstar! so let me guess...there is going to be a forced divesture in Fort Wayne if they do acquire more stations?
     
  3. TennTV1983

    TennTV1983 Primary Anchor

    Joined:
    Nov 29, 2006
    Messages:
    1,261
    Likes Received:
    250
    Why divest when they can simply shift some of the licenses over to Mission, though I would imagine the already messy ownership situations in Syracuse and Fort Wayne would only get messier if Nexstar were to acquire Granite as a whole.
     
  4. Raymie

    Raymie Station Group CEO

    Joined:
    Oct 27, 2010
    Messages:
    3,374
    Likes Received:
    961
    Nexstar and Granite are too good a fit for each other.

    If the two companies were to combine, Nexstar would control every station of consequence in Peoria, Illinois. Nexstar owns WMBD (CBS) and controls WYZZ (Fox, Sinclair). Granite owns WEEK (NBC) and operates WAOE (MyTV, Four Seasons Broadcasting/Venture Technologies) and WHOI (ABC, Barrington --> Sinclair). It's unclear how some of the pending sale relationships are going to work out in Peoria, especially with Sinclair's pending buyout of Barrington that will give it a duopoly where it doesn't control either station. To operate its duopoly of WHOI/WYZZ, Sinclair would need to start a separate news department and find studio space, as WHOI's news department is a sidecar to WEEK and both stations are co-located with their parents.

    Something similar, as mentioned, would happen in Fort Wayne, where Nexstar would control WPTA, WISE and WFFT, but in this case an independent outlet does stand (LIN's WANE-TV).

    Third on the priority list is Syracuse. Nexstar and Sinclair would become the only station owners for all major stations (pending Barrington deal).
     
  5. GoldenShine9

    GoldenShine9 News Director

    Joined:
    Jun 14, 2013
    Messages:
    1,144
    Likes Received:
    377
    No surprise at all really, Granite was definitely a seller all along.

    Nexstar was never even in contention for the big guns recently - Local TV, Allbritton, Belo, Young, etc. - as they were FAR outside their price range. I wonder if the top-market netlets would be kept by them or sold (perhaps to networks looking for O&O duopolies) for more cash for further acquisitions, since Nexstar doesn't seem interested in top-25 markets.
     
  6. GoldenShine9

    GoldenShine9 News Director

    Joined:
    Jun 14, 2013
    Messages:
    1,144
    Likes Received:
    377
    Peoria is definitely a messy one, as is Syracuse. Maybe the Sinclair/Barrington deal was on hold awaiting this for a potential 4-way, 2-owner deal?

    How I can see Syracuse:

    WSTM - Sinclair proper
    WTVH - break LMA, to Mission with LMA Nexstar (sister to WSYR) - or keep LMA, sell/trade to Deerfield (Nexstar could have to take over a Sinclair asset fully somewhere else)
    WSYR - Nexstar proper - status quo
    WSTQ (LP) - Sinclair proper, as a low-power it can be with anyone
    WNYS - RKS Media, LMA Sinclair - status quo
    WSYT - Cunningham, LMA Sinclair

    Luckily, WNYS being LMA'd from an extra party and WSTQ being low-power makes it a little clearer so it can be done without creating another new shell, although Nexstar might rather just ship WTVH to the WSYR offices instead. That would require breaking an LMA though. Not sure what other owners could be interested in Syracuse; Raycom and Gray are too far from their base (they have pretty much nothing in the Northeast), and the other big names are likely not interested in a mid-small market (#84) in a political wasteland. Hubbard might be the most likely, as they have assets in Rochester and Albany. Even then, they would have to restart everything for WTVH.

    Peoria is even more complicated. One possibility (the only one I can think of with no divesting and competition in the market):

    WHOI - Sinclair proper, break LMA and start new operation
    WEEK - to Mission, LMA Nexstar with WMBD
    WMBD - Nexstar proper - status quo
    WYZZ - Cunningham, LMA Sinclair with WHOI
    WAOE - Four Seasons, LMA Nexstar

    Without breaking the LMA, there would likely need to be a new owner entering the market and something would have to come up for sale, or Nexstar would have a monopoly on news operations. It's just so complicated...
     
  7. mike91

    mike91 Primary Anchor

    Joined:
    Jul 27, 2012
    Messages:
    271
    Likes Received:
    60
    If this were to go through, Binghamton would be a mess too, as they would have ABC, NBC and CBS. The only non-Nexstar station would be FOX.
     
  8. CircleSeven

    CircleSeven Midnight Presenter

    Joined:
    Nov 29, 2006
    Messages:
    3,555
    Likes Received:
    532
    Brady would probably have a baby and file a complaint, if it does come to fruition. He owns WICZ.

    On earlier post, I speculated that Media General would acquire the Granite stations, because it wouldn't have any sort of conflicts. The overlapped markets (Duluth & Fort Wayne), one of them would be assigned to that Galloway shell (I think he holds the Sheild). The article states that one of the deals may include Granite. Should they acquire Granite, I don't think that it will include KOFY or WMYD. That would be just too big for them.

    Should Nexstar goes ahead and acquire Granite, several things need to be sorted out, not only the situations in Peoria & Syracuse, which I think there's several issues in itself, but the current LMA in other existing/new Sinclair/Nexstar markets. It looks like Sinclair will win another Big-4 duopoly soon (like in SA with WOAI/KABB) in El Paso (KDBC/KFOX). If both are going to move to a new facility in 2014 like they said they were going to do, where are going to move to? Or are they going to build it from scratch (which is very unlikely). Other markets include Harrisburg, Rochester. I think, the Rochester one basically be done after it expires. I don't think Nexstar will lose any sleep if WUHF move to WHAM, because there busy hubbing the other NY stations anyway. Harrisburg could be a real tricky situation since Sinclair will operate both WHP and WHTM, while they still have that LMA with WLYH.

    In other words, 7 years ago when they both partnered to do the LMAs in Rochester, Peoria & Harrisburg, and while both have more then one shell I think they have all the capital that they don't really need/continue to have an LMA.

    Peoria will be one hot mess. Should Nexstar acquires WEEK (and they would no doubt have come with a Mission), you know what they're going to do. I'm not sure if WMBD's building is big enough to occupy two stations and two master controls. I would love to see WHOI having an in-house news operation. If Sinclair was smart enough, they would probably think about the spots to where they could build a facility, and yes they would have to recruit personnel and buy sets and HD equipment and such. OR, should WEEK move to WMBD, WHOI could have the WEEK facility all to themselves, and move WYZZ to join WHOI. But whatever the case maybe, this would be one of the most complicated moves I've ever see in regards of move of station operations.

    If the LMA in Peoria & Syracuse never happened, this would be an easier pill to swallow, I tell you.
     
  9. hathawaynson2

    hathawaynson2 Managing Editor

    Joined:
    Mar 21, 2013
    Messages:
    388
    Likes Received:
    32
    Here is how I see the Peoria/Bloomington Market:
    WHOI-Sinclair proper without the LMA, restart operations and potentally regaining Master Control operations from WEEK
    WEEK-to Gray Television or Hubbard Broadcasting
    WMBD-Stays with Nexstar
    WYZZ-Cunningham or Excallibur Broadcasting, LLC with WEEK
    WAOE-LIN Media, LLC

    Why divest when they can simply shift some of the licenses over to Mission, though I would imagine the already messy ownership situations in Syracuse and Fort Wayne would only get messier if Nexstar were to acquire Granite as a whole.

    Agreed!
     
  10. sanewsguy

    sanewsguy TV Viewer

    Joined:
    Jun 14, 2013
    Messages:
    1,549
    Likes Received:
    300
    Most of y'all aren't going to like hearing this, but this doesn't actually seem too far fetched.

    I can tell you what will happen: WMYD/KOFY will probably be divested since Nexstar probably has zero interest in those stations (their largest station by DMA is KTVX in SLC; no WHAG doesn't count since it's really a small market station that shares a DMA with DC).

    Duluth and Buffalo remain the same. Also, I can see Nexstar pulling a WATN with WKBW minus a call letter change (the call letters are well known in Buffalo) since their ratings are so bad and they need to improve that and return to their former #1 glory.

    Peoria, IL-WHOI and WYZZ move to their own facility. WMBD moves in with WEEK (WEEK has the larger facility). WAOE stays the same.

    Binghamton-Mission acquires WBNG (or Mission acquires WIVT and Nexstar proper acquires WBNG).

    Syracuse-WTVH (Mission property probably) moves in with WSYR (the dominant #1 in CNY, so nothing changes really). New LMA partner, everything else is status quo.

    Some things I'd like to address:
    WFFT-probably remains Nexstar proper; WPTA=Mission, WISE=Rocky Creek. If Nexstar closes in on Evansville, they will control all network affiliations but NBC. What makes you think that can't happen here?

    Yes, but let's see. The ABC doesn't have a strong news prescence with most of their stuff sourced from WETM Elmira. The three people on their team (a ND/main anchor, a reporter, and a sports anchor; Wikipedia incorrectly lists one of their interns as a reporter) can easily be absorbed into WBNG. WIVT rates so bad Nexstar hasn't bothered with them. They are still using graphics from sometime during the 20th century (can't think of the exact year), an even older set, and dated music, plus WSYR's Rod Wood as the announcer.

    The NBC is low-powered and has no news whatsoever.

    The CBS is long-dominant. I can't see why Nexstar doesn't want them.

    Didn't the FCC reject Sinclair's application to sell WSYT to Cunningham?

    Is this a good thing or a bad thing? There are at least two owners so IMO, that is fine.

    Why would he need to? As I mentioned, there are really only two news ops in Binghamton (a rather small market to begin with), WBNG and WICZ. No, WIVT doesn't count. They're programming the bare minimum as their affiliation agreement states. I don't see anything wrong there.

    Granite has always been Nexstar's. I think somewhere along the lines, Perry Sook and Peter Markham are good friends, since he also called Sook up for Comcorp.

    WMBD's studio is in a stripmall. It's smaller (but newer) than WEEK's I can tell you that. Sinclair already has two facilities (they probably require some investment to get them up to par) they can use: WYZZ's old studios in Bloomington which continue to serve as a news bureau for WMBD and houses sales staff for both stations, and WHOI's old facility next to the transmitter in Creve Coeur (currently vacant). They wouldn't really have to build anything new...
     
  11. GoldenShine9

    GoldenShine9 News Director

    Joined:
    Jun 14, 2013
    Messages:
    1,144
    Likes Received:
    377
    I agree re: Fort Wayne, they got away with it in Evansville and Granite already has the situation so it is basically status quo. WMYD and KOFY I definitely see sold off (probably as duopoly bait for the existing owners in their markets - perhaps Fox Broadcasting for WMYD into a duopoly with WJBK and Cox Media for KOFY into a duopoly with KTVU?) since top-15 markets are not in Nexstar's DNA. Binghamton is pretty much status quo as well due to the fact there are essentially two operations given the market size. Duluth would probably be KBJR and KRII to Nexstar proper and KDLH to Mission - no effective change. It is Peoria and Syracuse where the troubles lie...

    It might be that the WSYT deal to Cunningham was rejected but it appears somewhat unclear...if so, then something there would need to be sold off to another operation. But who? If forced to sell something in Syracuse, Hubbard comes on my mind first due to adjacent assets, while in Peoria, the first on my mind is Quincy, also due to adjacent assets in similar small-medium markets.

    Some of those Sinclair/Nexstar LMAs may end up being bait for the other side in trades...
     
  12. hathawaynson2

    hathawaynson2 Managing Editor

    Joined:
    Mar 21, 2013
    Messages:
    388
    Likes Received:
    32
    I agree re: Fort Wayne, they got away with it in Evansville and Granite already has the situation so it is basically status quo. WMYD and KOFY I definitely see sold off (probably as duopoly bait for the existing owners in their markets - perhaps Fox Broadcasting for WMYD into a duopoly with WJBK and Cox Media for KOFY into a duopoly with KTVU?) since top-15 markets are not in Nexstar's DNA. Binghamton is pretty much status quo as well due to the fact there are essentially two operations given the market size. Duluth would probably be KBJR and KRII to Nexstar proper and KDLH to Mission - no effective change. It is Peoria and Syracuse where the troubles lie...

    It might be that the WSYT deal to Cunningham was rejected but it appears somewhat unclear...if so, then something there would need to be sold off to another operation. But who? If forced to sell something in Syracuse, Hubbard comes on my mind first due to adjacent assets, while in Peoria, the first on my mind is Quincy, also due to adjacent assets in similar small-medium markets.

    Some of those Sinclair/Nexstar LMAs may end up being bait for the other side in trades...


    What do you mean by those Sinclair/Nexstar LMAs may end up for the bait for the other side as in the selling or trading off?
     
  13. effseesee

    effseesee Reporter

    Joined:
    Jan 3, 2008
    Messages:
    235
    Likes Received:
    29
    NBC in Binghamton is a LP. Thus Nexstar can keep WIVT/WBGH and Misson would get WBNG and the whole thing will operate from the WBNG building.
     
  14. channel2

    channel2 Primary Anchor

    Joined:
    Apr 24, 2008
    Messages:
    988
    Likes Received:
    248
    KTVU already has a duopoly partner, KICU.
     
  15. tyrannical bastard

    tyrannical bastard Assistant VP of Aspect Ratio Correction

    Joined:
    Dec 3, 2006
    Messages:
    1,772
    Likes Received:
    640
    I think Nexstar will find a way to make these stations work...they do have experience running independent stations (KOZL, WTVW & WFFT). A MyNetwork station is basically the same thing, but with the My branding throughout and filling two hours of primetime.

    Detroit is also tied at the hip with their Fort Wayne stations since they not only produce newscasts that air in Detroit, but master control comes out of Fort Wayne as well.

    Jacksonville is another market where Nexstar seems out of place, but runs a very successful CW station that they acquired from Media General back in 2009. They've added local programming to that station and could do the same in San Francisco and Detroit....

    If Nexstar wants a station to divest.....they should consider dumping WDHN in Dothan, AL.
     
  16. MidwestTV

    MidwestTV Station Group CEO

    Joined:
    Jul 24, 2012
    Messages:
    1,608
    Likes Received:
    413
    I don't see why a triopoly is legal. I'm just waiting for the day when Sinclair or Nexstar will end up owning an entire market.
     
  17. hathawaynson2

    hathawaynson2 Managing Editor

    Joined:
    Mar 21, 2013
    Messages:
    388
    Likes Received:
    32
    I am waiting for that too, except in Peoria they are going to start really over doing it with the stations that they own and/or operate completely when the station is under an LMA and either one of them is forced to sell it to an new owner and break the agreement.

    and when is Nexstar going to dump WDHN? maybe one to five years from now? I remember the sale to KBTV to one of Sinclair's shell group called Deerfield Media and it was Nexstar's first divesture since the company was formed in 1996!
     
  18. swillh2k2

    swillh2k2 AM Anchor

    Joined:
    Nov 28, 2006
    Messages:
    558
    Likes Received:
    150
    WEEK to Hubbard? WAOE to LIN? What reason would Hubbard or LIN have to purchase a station in a sub-100 market?
     
  19. GoldenShine9

    GoldenShine9 News Director

    Joined:
    Jun 14, 2013
    Messages:
    1,144
    Likes Received:
    377
    Nexstar and Sinclair (and any other existing owners) are not likely going to divest unless forced to by the FCC.
     
  20. hathawaynson2

    hathawaynson2 Managing Editor

    Joined:
    Mar 21, 2013
    Messages:
    388
    Likes Received:
    32
    AFAIK, LIN bought New Vision's station group and it came with the SSA agreement to operate three stations.
    otherwise, I personally would think that Sinclair/Nexstar are not really going to divest any stations at all unless the FCC has a really really hard time with their ownership proceedures with an TV station.
     

Share This Page