By: Unknown
From: Business Wire
Nexstar Broadcasting Group, Inc. (Nasdaq: NXST) announced today that it has filed an application with the Federal Communications Commission (FCC) for consent to sell KFTA-TV, Channel 24 (Ft. Smith, AR) to Mission Broadcasting, Inc. for $5.6 million.
Pending FCC approval, and upon completion of the sale, Mission intends to provide FOX programming to serve the Ft. Smith-Fayetteville-Springdale-Rogers DMA. Nexstar's KNWA-TV, Channel 51, licensed to Rogers, AR, has renewed its affiliation agreement for KNWA-TV to continue as the NBC affiliate in Ft. Smith-Fayetteville-Springdale-Rogers, AR through 2014. Upon closing the purchase of KFTA, Mission plans to enter into a joint sales and shared services agreement with Nexstar's KNWA-TV whereby KNWA will provide local news, sales and other non-programming services to KFTA.
Perry A. Sook, Chairman, President and Chief Executive Officer of Nexstar Broadcasting Group, Inc., commented, "If approved, the sale of KFTA to Mission will provide viewers in the Ft. Smith-Fayetteville-Springdale-Rogers DMA with a full-power FOX station as well as the market's first prime time local newscast." Mr. Sook added, "The transaction is structured such that it will be neutral to Nexstar's total debt obligations."
Nexstar has time brokerage agreements, shared services agreements and joint sales agreements (generally referred to as local service agreements) relating to the television stations owned by Mission, but does not own an equity interest in Mission.
About Nexstar Broadcasting Group, Inc.
Nexstar Broadcasting Group, Inc. currently owns, operates, programs or provides sales and other services to 46 television stations in 27 markets in the states of Illinois, Indiana, Maryland, Missouri, Montana, Texas, Pennsylvania, Louisiana, Arkansas, Alabama and New York. Nexstar's television station group includes affiliates of NBC, CBS, ABC, FOX and UPN, and reaches approximately 7.0% of all U.S. television households.
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