Shadow State contributed to this report. Nexstar Media Group, Inc., is acquiring 75% of the CW Network.Nexstar produces and distributes local and national news, sports and entertainment content, including 290,000 hours of original video content each year.
The TV show Smallville, well known to readers because of the starring roles of Allison Mack and Kristin Kreuk, was broadcast on the CW network from 2006-2011. The series averaged about 4.34 million viewers per episode.
CBS (Paramount) and Warner Brothers co-owned CW Network and will retain 12.5 percent interest each.
Nexstar owns America’s largest local broadcasting group, top network affiliates, and 200 owned or partner stations in 116 U.S. markets, reaching 212 million people. Nexstar already owned 37 CW and CW Plus affiliates.
Some might characterize the purchase of the teen-oriented CW network as a fire sale.
Nexstar obtains 75 percent interest in The CW network in return for writing off debt that CW, Paramount, and Warner Brothers owe Nexstar.
Nexstar intends to transition from teen are like Smallville to more adult-oriented programming.
Mark Pedowitz will continue to serve as The CW’s Chairman and Chief Executive Officer, with responsibility for day-to-day operations. The transaction is expected to close in the third quarter.
Perry Sook, Nexstar’s Chairman and Chief Executive Officer, commented,
Our acquisition of The CW is strategically and operationally compelling, as it will enable us to leverage our operational experience to improve the Network’s performance through our management of this powerful national platform. We plan to apply the same strict financial standards to operating The CW as we apply to our other businesses.
George Cheeks, President & Chief Executive Officer of CBS.
The CW has delivered signature programming to its broadcast and digital audiences for 16 years,” said, “Together, with our partners at Warner Bros. and The CW, we have created a welcome home for content that has resonated with viewers on the network and on platforms around the world. This new ownership structure enables us to partner with Nexstar and Warner Bros. Discovery on the next chapter of The CW while redeploying capital to other content platforms at Paramount.
Channing Dungey, Chairman, Warner Bros. Television Group, commented:
For 16 seasons, The CW has been home to some of the most groundbreaking and generation-defining programming in television, from the iconic DC Super Heroes of Greg Berlanti’s Arrowverse series to The Vampire Diaries, and everything in between, including the All American franchise, the original Gossip Girl, Kung Fu, Nikita, Riverdale, Smallville, and many many more. The network was also the home of Supernatural, the longest-running live-action fantasy series in U.S. TV history, for 14 of its 15 seasons. We’re excited that the Supernatural story will continue with The Winchesters premiering this fall. We look forward to continuing to collaborate on our shared series and future projects to come under Nexstar’s leadership. We are forever grateful to our partners at The CW, especially Mark Pedowitz, who has been a great friend to the studio for so many years, and to me personally. We know that the network will continue to thrive under his leadership.
Conference Call, Webcast, Investor Presentation
Nexstar hosted a conference call on August 15, to review the transaction. A webcast replay is available until September 15 of the live event at www.nexstar.tv.
Those interested can invest in the company by buying its stock.
Forward-Looking Statements
Nexstar has made forward-looking statements. These include the words “guidance,” “believes,” “expects,” “anticipates,” or “could.”
Readers of Frank Report may, if they wish, invest in Nexstar.
All the words mean Nexstar wants you to understand that “forward-looking statements” about future financial performance, including net revenue, cash flow and operating expenses, involve risks and uncertainties, and are subject to change based on national and regional economies, the ability to service and refinance outstanding debt, successful integration of acquired television stations and digital businesses, price fluctuations in advertising, future regulatory actions, conditions in the television stations’ operating areas, competition from other networks, volatility in programming costs, governmental regulation of broadcasting, industry consolidation, technological developments and world news events.
You have to feel confident that these will not adversely impact the investment.
In other words, the forward-looking events of success and profits to investors might not occur.
About Nexstar Media Group, Inc.
Nexstar (NASDAQ: NXST), has done well. Five years ago, stock was selling for less than $60 per share. Now it is almost $200.
Nexstar’s television assets include NewsNation, a national news and entertainment cable network, reaching 70 million television homes, popular entertainment multicast networks Antenna TV and Rewind TV, and a 31.3% ownership stake in TV Food Network.
The Company’s portfolio of digital assets, including The Hill and BestReviews, are collectively a Top 10 U.S. digital news and information property.
You might want to advertise on Nexstar, which can provide you with multi-platform advertising opportunities.
For more information, visit www.nexstar.tv
Kirkland & Ellis LLP and Loeb & Loeb LLP served as legal advisors to Nexstar. Guggenheim Securities acted as financial advisor, and Paul Hastings LLP served as legal advisor to Warner Bros. Discovery, Paramount Global and The CW.
