Nexstar Media Group, Inc. (NASDAQ:NXST) (“Nexstar”) and Sinclair
Broadcast Group, Inc. (NASDAQ:SBGI) ("Sinclair"), (together
referred to as “the Parties”) announced today that they have
entered into a memorandum of understanding regarding the
establishment of a consortium that will promote spectrum
aggregation, innovation and monetization and enhance their
abilities to compete in the wireless data transmission sector. The
consortium, which will be jointly owned and controlled equally by
the founding Parties, has agreed to collaborate on a non-exclusive
basis and the consortium is intent on exploring the inclusion of
other television broadcasting entities. Nexstar and Sinclair are
two of the largest and most diversified television broadcasting
companies in the nation and collectively own and operate television
stations reaching approximately 60% of the country.
Unlike prior industry efforts which were based on flawed
technology, this consortium has been established in anticipation of
the adoption of the ATSC 3.0 "Next Generation" broadcast
transmission standard and its proven capabilities. The consortium
will promote innovation and develop and explore products and
services associated with ATSC 3.0 and monetization opportunities
such as spectrum utilization, virtual MVPD platforms, multicast
channels, automotive applications, single frequency networks and
wireless data applications, among others.
Upon adoption of ATSC 3.0, consumers will be able to integrate
video content and data across numerous "smart" devices, to more
effectively and efficiently address their information and
entertainment needs. With the proper technology and data gathering
methodologies, Nexstar and Sinclair expect to capture significant
and meaningful information relating to consumers’ actual viewing
and consumption behaviors. As a result, broadcasters will no longer
have to rely on expensive third party measurement services with
small sample sizes and unverified results. The value of this
captured data across all Next Gen-enabled devices and their users
can be monetized several ways. For advertisers, it will provide
greater efficiency for their spend with elevated addressability,
personalization and accountability. Similarly broadcasters will
realize greater efficiencies in reaching and monetizing a
significantly larger advertising market.
Perry A. Sook, Chairman, President and Chief Executive Officer
of Nexstar Media Group, Inc. commented, “We are delighted to join
forces with Sinclair who has led the industry in advancing the ATSC
3.0 broadcast standard and its adoption. By establishing a formal
collaborative effort to advance the promotion of spectrum
utilization, innovation and monetization through ATSC 3.0, we can
more quickly bring its ground breaking benefits to broadcasters,
viewers and advertisers based on the new technology’s ability to
deliver targeted advertising. With the near-term conclusion of the
FCC Incentive Auction, Nexstar and Sinclair are leading the
industry in ensuring that we bring our respective shareholders
appropriate value from increasingly scarce and in-demand spectrum.
In addition, we welcome the involvement of other broadcasters who
share our enthusiasm for the new technology which will allow our
industry to continue to thrive in today’s multi-platform
world.”
Chris Ripley, President and Chief Executive Officer of Sinclair
Broadcast Group, Inc. added, "Nexstar shares our vision for
broadcast standard innovation and the benefits of knowing with
precise accuracy who is viewing our programming, what they're
watching and when they're watching. Data gathering, measurement and
viewer behavior are critical considerations for advertisers and our
collaborative initiative will ensure that Sinclair, Nexstar and
perhaps other industry participants are out of the blocks quickly
once ATSC 3.0 is launched. We believe this effort will maximize the
value of our programming and ad inventory while creating new cross
platform revenue opportunities that will benefit our respective
shareholders."
About Nexstar Media Group, Inc.
Nexstar Media 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 170 television stations and related digital
multicast signals reaching 100 markets or nearly 39% of all U.S.
television households. Nexstar’s portfolio includes primary
affiliates of NBC, CBS, ABC, FOX, MyNetworkTV and The CW. Nexstar’s
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. For more information please visit
www.nexstar.tv.
About Sinclair Broadcast Group, Inc. (Nasdaq: SBGI)
Sinclair is one of the largest and most diversified television
broadcasting companies in the country. The Company owns, operates
and/or provides services to 173 television stations in 81 markets,
broadcasting 508 channels and has affiliations with all the major
networks. Sinclair is one of the leading local news providers in
the country, as well as a producer of live sports content.
Sinclair's content is delivered over multiple-platforms, including
over-the-air, multi-channel video program distributors, and digital
platforms. The Company regularly uses its website as a key source
of company information which can be accessed at
www.sbgi.net.
Forward-Looking Statements for Nexstar Media Group
This communication 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, Nexstar 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 communication,
concerning, among other things, future financial performance,
including 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, the ability to service and
refinance our outstanding debt, successful integration of acquired
television stations and digital businesses (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, volatility in
programming costs, the effects of governmental regulation of
broadcasting, industry consolidation, technological developments
and major world news events. Nexstar undertakes 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 communication 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 Nexstar’s
other filings with the SEC.
Forward-Looking Statements for Sinclair Broadcast
Group
The matters discussed in this news release include
forward-looking statements regarding, among other things, future
operating results. When used in this news release, the words
“outlook,” “intends to,” “believes,” “anticipates,” “expects,”
“achieves,” “estimates,” and similar expressions are intended to
identify forward-looking statements. Such statements are subject to
a number of risks and uncertainties. Actual results in the future
could differ materially and adversely from those described in the
forward-looking statements as a result of various important
factors, including, but not limited to the impact of approval,
adoption and implementation of ATSC 3.0, changes in national and
regional economies, the volatility in the U.S. and global economies
and financial credit markets which impact our ability to forecast,
our ability to integrate acquired businesses and maximize operating
synergies, our ability to obtain necessary governmental approvals
for announced acquisitions, successful execution of outsourcing
agreements, pricing and demand fluctuations in local and national
advertising, volatility in programming costs, the market’s
acceptance of new programming, our news share strategy, our local
sales initiatives, the execution of retransmission consent
agreements, our ability to identify and consummate investments in
attractive non-television assets and to achieve anticipated returns
on those investments once consummated, and any other risk factors
set forth in the Company’s most recent reports on Form 10-Q, Form
10-K and Form 8-K, as filed with the Securities and Exchange
Commission. There can be no assurances that the assumptions and
other factors referred to in this release will occur. The Company
undertakes no obligation to publicly release the result of any
revisions to these forward-looking statements except as required by
law.
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version on businesswire.com: http://www.businesswire.com/news/home/20170315005324/en/
Nexstar Media Group, Inc.Thomas E. Carter, 972-373-8800Chief
Financial OfficerorJCIRJoseph Jaffoni, Jennifer
Neuman212-835-8500nxst@jcir.comorSinclair Broadcast Group, Inc.Lucy
Rutishauser, 410-568-1500Chief Financial Officer
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