Nexstar Broadcasting Group Inc (NXST)

History and Background

Nexstar Broadcasting Group, Inc. was founded in 1996. It has grown through acquisitions to become one of the largest local television broadcasting companies in the U.S. Key milestones include acquiring Tribune Media in 2019 and various station groups over the years.

Core Business Areas

• Broadcasting: Operates local television stations, providing news, entertainment, and syndicated programming. This includes affiliations with major networks like CBS, NBC, ABC, and FOX.
• Digital: Manages digital platforms associated with its television stations, including websites and mobile applications, offering local news and content online. Also digital marketing solutions.
• Political Advertising: Generates revenue from political advertising, particularly during election cycles.

Leadership and Structure

Perry Sook is the Chairman and CEO. The company has a typical corporate structure with executives leading various departments such as broadcasting, digital, and finance.

Key Offerings

• Local Television Broadcasting: Core product offering local news, syndicated content, and network programming. Market share varies by local market. Competitors include Tegna, Sinclair Broadcast Group, and Gray Television. Revenue is primarily driven by advertising and retransmission fees.
• Digital Media: Operates local news websites and apps, providing online content and advertising opportunities. Competitors include pure-play digital media companies and other local broadcasting groups with digital platforms. Revenue is generated through online advertising.
• Political Advertising: Offers advertising spots to political campaigns. Revenue fluctuates based on election cycles. Competitors include other local broadcasting stations and digital advertising platforms.

Industry Overview

The broadcasting industry is undergoing a transformation due to cord-cutting and the rise of streaming services. Local broadcasters are adapting by focusing on local news and digital platforms.

Positioning

Nexstar is positioned as a leading local broadcasting company with a large portfolio of stations across the U.S. Its competitive advantage lies in its scale and its focus on local content.

Total Addressable Market (TAM)

The total addressable market for local broadcast advertising and retransmission fees is estimated to be in the tens of billions of dollars annually. Nexstar is well-positioned to capture a significant share of this market through its extensive network of stations.

Key Competitors

• TGNA
• SBGI
• GTN

Competitive Landscape

Nexstar has advantages in scale and local news presence, but faces challenges from competitors adapting to the digital landscape. Sinclair has a broader reach. Tegna is strong in news. Gray Television has a high number of stations in top markets.

Tribune Media

• Year: 2019
• Acquisition Price (USD millions): 7200
• Strategic Rationale: Expanded Nexstar's geographic footprint and increased its presence in major markets.

Historical Growth: Historical growth must be based on actual data.

Future Projections: Future projections must be based on analyst estimates, and can be found on sites like Yahoo Finance.

Recent Initiatives: Recent Initiatives must be based on actual data.

Nexstar is a leading local broadcasting company with a large portfolio of stations and a strong focus on local news. The company faces challenges from cord-cutting and competition from streaming services, but it is well-positioned to capitalize on the growth of digital platforms and political advertising. High debt from acquisitions is a concern. Overall, Nexstar is relatively strong, particularly given the shift to digital, and it needs to carefully manage its debt while growing its digital presence.

Data Sources:

• SEC Filings
• Company Investor Relations
• Yahoo Finance
• Analyst Reports (FactSet, S&P Capital IQ)

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Market share and financial data are estimates and may vary.