Nexstar agreed to sell WEVV-TV (CBS) Evansville, Indiana,...
Nexstar agreed to sell WEVV-TV (CBS) Evansville, Indiana, to a company run by and partly owned by an African American, as part of Department of Justice-required divestitures. Bayou City Broadcasting Evansville (BCBE) would pay $18.6 million for WEVV, and the…
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FCC must approve the deal, said Nexstar in a news release. BCBE is a owned by affiliates of Alta Communications, Bayou City Broadcasting (BCB) and Sankaty Advisors, and BCB owner DuJuan McCoy will run BCBE. (See separate report below in this issue.) It’s “the second time in the last two months that Nexstar has structured an agreement that furthers the FCC’s goal of increasing minority television ownership diversity,” said Nexstar CEO Perry Sook Monday (http://bit.ly/1lwIVWS). Another recently disclosed Nexstar sale agreement is of three Fox affiliates to Marshall Broadcasting Group, a newly formed minority-owned firm, as Nexstar is buying Communications Corporation of America. Nexstar said it expects to complete all pending deals this year. Selling WEVV “brings the overall CCA transaction into compliance” with DOJ “requirements for approval and will release the pending transaction from hold pending divestiture,” said Nexstar. Marshall’s deal to buy the three Nexstar stations was seen as a template of sorts for other broadcasters to get M&A through an FCC perceived as hostile to such deals (CD June 11 p9). The National Association of Black Owned Broadcasters, which supported the recent station sale to Marshall, also backed the WVEE divestiture, while public interest lawyer Andrew Schwartzman had questions about it. The WVEE deal “is the first independent purchase of a television station by an African American owned company in several years,” said a news release from NABOB, which has BCB as a member. “Unlike several recent transactions in which African American owners have purchased stations connected with larger media companies through joint sales agreements (JSAs) and/or shared services agreements (SSAs), the Bayou transaction is a completely independent transaction.” There are no JSA or SSA pacts, said the association. Nexstar’s news release gives few details, emailed Schwartzman, senior counselor at Georgetown Law’s Institute for Public Representation. A Nexstar lawyer didn’t comment. “A number of questions are left unanswered,” Schwartzman told us.