Nexstar Broadcasting Acquires Cloud-Based CMS Platform and Solutions Provider in a Strategic Transaction
May 19 2014 - 1:00PM
Business Wire
Nexstar Broadcasting Group, Inc. (Nasdaq:NXST) (“Nexstar”)
announced today that it acquired the stock of Enterprise Technology
Group (“ETG”), a provider of cloud-based content management,
engagement and monetization solutions. The tuck-in acquisition adds
new IP, technology and a team of skilled developers which
complement Nexstar’s current content management businesses, and was
funded through internal sources.
ETG’s re-engineered platform utilizes the public cloud to
provide publishers with a platform that can effectively and
efficiently enable client side customizations along with enhanced
responsive content management system (“CMS”) capabilities.
Enterprise Technology Group’s domestic and international clients
include broadcasters, print publishers, brands and retailers, as it
delivers “any screen” capabilities with respect to content
creation, management, engagement and monetization.
Tom O’Brien, Nexstar Broadcasting Group Executive Vice
President/Digital Media and Chief Revenue Officer, commented, “ETG
represents an excellent strategic fit with Nexstar’s current
digital media portfolio. Combining their multi-screen, responsive
technology with Nexstar’s existing digital platform and agency
capabilities, from our Internet Broadcasting and Inergize Digital
divisions, enables us to expand the range of “best of breed”
content publishing and monetization tools that we can offer to
power our clients’ digital media businesses.”
The addition of ETG’s operations are expected to expand
Nexstar’s digital business portfolio to approximately $50 million
in annual run rate revenues.
Perry A. Sook, Chairman, President and Chief Executive Officer
of Nexstar Broadcasting Group, Inc., added, “This is another step
in our plan to strategically invest in and expand our digital media
portfolio to serve a broad range of businesses and needs. By
combining Nexstar’s technology offerings and capabilities with
ETG’s, our holistic approach to content rendering, analytics and
platform optimization will create revenue opportunities and deliver
value across our existing digital media operations and to our
growing client base, particularly those seeking cross-device CMS
solutions.”
About Nexstar Broadcasting Group, Inc.
Nexstar Broadcasting Group is a leading diversified media
company that leverages localism to bring new services and value to
consumers and advertisers through its traditional media, digital
and mobile media platforms. Nexstar owns, operates, programs or
provides sales and other services to 74 television stations and 19
related digital multicast signals reaching 44 markets or
approximately 12.9% of all U.S. television households. Nexstar’s
portfolio includes affiliates of NBC, CBS, ABC, FOX, MyNetworkTV,
The CW, Telemundo, Bounce TV, Me-TV, Live Well and independent
stations. Nexstar’s 43 community portal websites offer additional
hyper-local content and verticals for consumers and advertisers,
allowing audiences to choose where, when and how they access
content while creating new revenue opportunities.
Pro-forma for the completion of all announced transactions
Nexstar will own, operate, program or provides sales and other
services to 108 television stations and related digital multicast
signals reaching 56 markets or approximately 16.0% of all U.S.
television households.
Forward-Looking Statements
This news release includes forward-looking statements. We have
based these forward-looking statements on our current expectations
and projections about future events. Forward-looking statements
include information preceded by, followed by, or that includes the
words "guidance," "believes," "expects," "anticipates," "could," or
similar expressions. For these statements, the Company claims the
protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of
1995.
The forward-looking statements contained in this news release,
concerning, among other things, changes in net revenue, cash flow
and operating expenses, involve risks and uncertainties, and are
subject to change based on various important factors, including the
impact of changes in national and regional economies, our ability
to service and refinance our outstanding debt, successful
integration of acquired television stations (including achievement
of synergies and cost reductions), pricing fluctuations in local
and national advertising, future regulatory actions and conditions
in the television stations' operating areas, competition from
others in the broadcast television markets served by the Company,
volatility in programming costs, the effects of governmental
regulation of broadcasting, industry consolidation, technological
developments and major world news events. Unless required by law,
we undertake no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. In light of these risks, uncertainties and
assumptions, the forward-looking events discussed in this news
release might not occur. You should not place undue reliance on
these forward-looking statements, which speak only as of the date
of this release. For more details on factors that could affect
these expectations, please see our filings with the Securities and
Exchange Commission.
Nexstar Broadcasting Group, Inc.Thomas E. CarterChief Financial
Officer972-373-8800orJCIRJoseph Jaffoni,
212-835-8500nxst@jcir.com
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