stations deal increases Black ownership and opportunities for content
6, 2014) Nexstar Broadcasting Group announced on Friday, June 6 that it
had a definitive agreement with Pluria Marshall Jr. (pictured) and
Marshall Broadcasting Group, a Black-owned media company, for the sale
of three network affiliated TV stations in three markets for $58.5
million. The financing for MBG's purchase will be guaranteed by Nexstar.
Perry A. Sook, Chairman, President and CEO of Nexstar Broadcasting
Group, said, "We believe the proposed transaction announced today
presents an ideal framework for introducing and incubating a new,
minority-controlled entrant to broadcasting, and for bringing additional
news, information and specialized programming to MBG's markets at the
earliest possible opportunity."
Under the terms of the agreement MBG will acquire three full-powered,
FOX affiliated stations, KMSS-TV (Shreveport, LA), KPEJ-TV
(Odessa-Midland, TX) and KLJB-TV (Quad Cities, IA).
In addition to securing from Nexstar the purchase, MBG will also enter
into agreements with Nexstar to provide sales, technical and
administrative functions while MBG maintains control of the stations and
According to a Nexstar press release on the sale, under the terms of the
proposed services agreements, MBG will be entitled to 70% of the
advertising revenue sold by Nexstar for the stations and will not
provide for any bonus payments to Nexstar for achieving revenue goals.
It will not be a fixed-fee payment; as total revenues increase, so does
The terms and conditions reflect the FCC's concerns when it voted to in
March to close loopholes in Joint Sales Agreement.
The practice of allowing JSAs, where the owner of one TV station was
allowed to sell advertising for another station, led to stations being
able to effectively operate as owners of multiple stations in a market.
Also, the deal comes at a time when minority ownership of broadcast
properties has gone from 18, full-power commercial TV stations in 2006
to none today.
Marshall Broadcasting Group, Inc. is a newly formed minority owned media
entity owned 100% by Pluria Marshall Jr. Marshall is currently the
president and chief executive officer of Equal Access Media Inc., which
owns several newspapers serving African-American and minority
communities, including The Texas Freeman and Houston Informer
Newspapers, The Los Angeles Wave Newspaper Group, and the Los Angeles
Independent Publications Group.
"We are delighted to have the support of Nexstar to promote diversity of
media ownership assets among minority operators," said Pluria Marshall.
"Over the last 30 years, I've devoted significant time and effort in
seeking to purchase television and radio stations. The single key factor
in each unsuccessful opportunity has been the inability to access the
funding necessary for the purchase.
"With Nexstar's support and commitment to guarantee financing for the
Shreveport, Odessa-Midland and Quad Cities station purchases, we believe
we are establishing a new paradigm that addresses recent proposed FCC
regulation changes while expanding the opportunity for minority
broadcasters to play a greater role in the U.S. broadcasting industry as
owners and operators of television stations."
MBG also intends to develop minority-oriented public affairs programming
that will air on its stations and be syndicated to other television
stations nationwide. In addition, Nexstar will add 13.5 hours of local
news and public affairs programming on the stations it owns in
Shreveport, Odessa-Midland and Quad Cities.
In commenting on the proposed sale between Nexstar and Marshall, the
Executive Director of the National Association of Black Owned
Broadcasters, Jim Winston, told Target Market News, "We have reviewed
the application submitted by Marshall Broadcasting Group and Nexstar and
are very pleased to see that the transaction appears to be the type of
transaction NABOB was hoping to see as a result of the new JSA rule. It
appears to be the kind of transaction that should receive a waiver of
Winston added, "We still have some questions about the transaction, and
we anticipate that the Commission will seek additional information form
the parties about the transaction. We are optimistic that, as
additional information is supplied to the Commission, NABOB will be able
to wholeheartedly endorse this transaction. As described it represents
the type of agreement that could be beneficial to increasing minority
ownership of broadcast properties and create increased opportunities for
minority-owned content producers and channels."
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