Nexstar Broadcasting Group, Inc. (Nasdaq:NXST) (“Nexstar”) announced today that it has entered into a definitive agreement Bayou City Broadcasting Evansville, Inc. (“BCBE”) for the sale of WEVV, the CBS affiliate in Evansville, Indiana for $18.6 million. BCBE is a minority led broadcaster owned by affiliates of Sankaty Advisors, LLC, Alta Communications and Bayou City Broadcasting, LLC. Bayou City Broadcasting, LLC (“BCB”) is owned by DuJuan McCoy, who will serve as BCBE’s president and chief executive officer.
Perry A. Sook, Chairman, President and Chief Executive Officer of Nexstar, commented, “The proposed transaction announced today highlights our focus on completing pending transactions and represents 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.”
Mr. McCoy founded BCB in December 2007 and in January 2008 agreed to purchase seven television stations located in Abilene and San Angelo, Texas. With this purchase, Mr. McCoy and BCB became the only African American company to own and/or operate a Fox Affiliate in the United States and the first African American to own and operate a network affiliated station in Texas. For over two decades, the Federal Communications Commission (“FCC”) has advanced proposals for the incubation of broadcast station ownership by disadvantaged businesses, including minority-owned companies. FCC data indicates that African-American ownership of television stations is exceptionally low, with African-Americans controlling only 0.7% of all television broadcast stations. Last month Nexstar announced plans to sell three full-powered, FOX affiliated stations in Shreveport, LA, Odessa-Midland, TX and Quad Cities, IA, to Marshall Broadcasting Group, Inc. (“MBG”) a newly formed minority owned media entity owned by Pluria Marshall Jr.
“Nexstar is taking an industry leading role in significantly expanding the diversity of media ownership assets among minority operators and addressing recent proposed FCC regulation changes,” said DuJuan McCoy. “I am delighted we have been able to structure an agreement for BCBE’s purchase of the Evansville CBS affiliate and would welcome other opportunities to work further with Nexstar or other broadcasters who are committed to supporting minority broadcasters as FCC licensees and owners and operators of television stations.”