Texas-based Nexstar Media Group Inc. (Nasdaq: NXST) has announced plans to sell its two Indianapolis television stations. The company has signed an agreement with Circle City Broadcasting Inc. to offload WISH-TV and WNDY-TV in a $42.5 million cash deal.
The acquisition will become official following the completion of Nexstar’s previously-announced acquisition of Tribune Media Co. (NYSE: TRCO). WISH is an affiliate of The CW Network and WNDY is an affiliate of MyNetworkTV.
CCB is a newly-formed company owned by DuJuan McCoy, who is also the owner, president and chief executive officer of Texas-based Bayou City Broadcasting LLC. McCoy will manage the operations of the stations after the acquisition is complete.
"The proposed sale of two stations in Indianapolis marks another important step forward towards completing the Tribune Media transaction and the last piece of the divestiture component of Nexstar’s comprehensive regulatory compliance plan," said Nexstar CEO Perry Sook. "We are delighted to be working again with DuJuan McCoy as the transaction announced today represents the third time that Nexstar has structured an agreement with Mr. McCoy which furthers the Federal Communications Commission’s goal of increasing television ownership diversity."
Nexstar says the deal is among several divestitures it is making in an effort to comply with the Federal Communications Commission local and national television ownership rules and to obtain FCC and U.S. Department of Justice approval of the Tribune acquisition. The sale of the Indianapolis stations brings the total number of divestitures to 21 stations in 16 markets for a total of $1.36 billion, which Nexstar says will help fund the Tribune acquisition and reduce debt.
The completion of the Tribune acquisition is expected to take place later this year.