Nexstar Broadcasting Acquires Yashi, Leading Local Digital Video Advertising & Programmatic Technology Company, for $33 Milli...
February 02 2015 - 4:02PM
Business Wire
Nexstar Broadcasting Group, Inc. (Nasdaq: NXST) (“Nexstar” or
the ”Company”) announced today that it has acquired 100% of the
stock of Yashi, Inc. (“Yashi”), a leading online video demand side
platform with location-focused technology for $33.0 million in a
transaction that is expected to be accretive to 2015 results.
Nexstar financed the acquisition with cash generated from
operations and funding provided by recent capital markets
activities. The purchase price is less than 6.0 times the average
2014/2015 pro-forma Adjusted EBITDA.
A pioneer of innovative location-based targeting and
programmatic digital technology and services for the online video
advertising industry, Yashi’s proprietary platform delivers a
one-stop digital advertising solution that integrates geographic,
demographic, and other data-driven targeting tools with
real-time-bidding, allowing advertisers to plan, buy, measure, and
optimize their ad campaigns in real time. Yashi’s rapid financial
growth has been nationally recognized as it has been included in
Inc. 5000’s List of Fastest Growing Private Companies for the last
three consecutive years. Among other accolades, Yashi was also
named to Deloitte’s 2014 Technology Fast 500 List of Fastest
Growing Companies in North America.
The acquisition of Yashi substantially broadens and diversifies
Nexstar’s digital media portfolio with businesses that are
complementary to the Company’s focus on providing compelling and
effective multi-platform marketing solutions for local and national
advertisers. In addition, the Yashi offering combined with
Nexstar’s geo-fencing patent and a robust local sales team of 600+
local account executives and sales managers provides valuable
synergies for the benefit of Nexstar customers. Yashi will continue
to operate its growing business as a division of Nexstar’s digital
media portfolio.
Tom O’Brien, Executive Vice President/Digital Media and Chief
Revenue Officer of Nexstar, commented, “The Yashi acquisition
strengthens and expands Nexstar’s digital video advertising
offerings with highly-targeted optimization tools and programmatic
capabilities. Their growing client roster, diversifying revenue
base and local targeting expertise in digital video are key
differentiators and represent an excellent strategic fit with
Nexstar’s growing digital media portfolio. Combining Yashi’s
targeting and programmatic digital technology with our existing
digital offerings enables Nexstar to continue to expand the
innovative multi-platform marketing solutions we can offer to local
and national advertisers, agencies and digital publishers across
the country.”
Jay Gould, CEO of Yashi stated, “Perry Sook and his team at
Nexstar have built one of the country’s strongest local media
businesses through organic growth and strategic acquisitions. The
combination of Nexstar’s digital video advertising business and the
Yashi platform is a win-win for clients on both sides, as Nexstar’s
growing scale and broad array of digital media assets will help
Yashi fulfill its vision to bring online video advertising to local
businesses throughout the United States. We are excited about
working with the digital media teams at Nexstar as we continue to
cement our place as leaders in location-focused online video
advertising for national and local brands utilizing our real-time
programmatic technology."
Perry A. Sook, Chairman, President and Chief Executive Officer
of Nexstar added, “Consistent with our long-term strategic
objective to identify and execute accretive transactions that build
our revenue and operating base, Nexstar will continue to focus on
strategic digital investments that further expand the Company’s
digital media offerings to include emerging, high quality digital
platforms and technologies while maximizing our multi-screen
revenue opportunities. By adhering to our disciplined acquisition
and integration criteria, we acquired a profitable, fast-growing
online video advertising business at an attractive pro-forma EBITDA
multiple.”
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 105 television stations and 34
related digital multicast signals reaching 56 markets or
approximately 15.6% of all U.S. television households. Nexstar’s
portfolio includes affiliates of NBC, CBS, ABC, FOX, MyNetworkTV,
The CW, Telemundo, Bounce TV, Me-TV, and LATV. Nexstar’s 56
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 110 television stations and related digital multicast
signals reaching 58 markets or approximately 18.0% 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. Carter,
972-373-8800Chief Financial OfficerorJCIRJoseph Jaffoni,
212-835-8500nxst@jcir.com
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