The Wall Street Journal says Nexstar is on deck for a big purchase:
"Television-broadcaster Nexstar Media Group is in advanced talks to acquire rival Tegna, according to people familiar with the matter."
This would affect KING, KGW, KREM, KTVB. Duopolies already present in Seattle and Spokane.
Nexstar already owns more than 200 stations and runs the 24-hour cable network, News Nation.
Consolidation marches on.
This is going to be quite the mess if it comes to fruition. Many newsrooms could be closed and consolidated. Many people could lose their jobs. Newscasts and other local programs. could be canceled. Lots of divestments may have to be done. Otherwise, we'll see triopolies (KGW, KOIN, and KRCW in Portland being a prime example), quadopolies (Tegna has one station in Tampa, while Nexstar has three), and even a quintopoly (Tegna has one station in Little Rock, Arkansas, while Nexstar controls four stations in the same market). I wish the journalists and behind the scenes people who work at Tegna and Nexstar stations all the best if this goes forward.
ReplyDeleteNexstar boss Perry Sook visiting Sacramento and Portland where both his company and Tegna have stations, so in the PNW, Sook wants KOIN and KGW as a top four duop. This report from FTV live.
DeleteIf this happens this will be problematic in Portland as Nexstar owns KOIN currently and would have to divest either them or KGW to comply with FCC rules. Seattle will be fine as will Spokane and Boise
ReplyDeleteNot under the current rules.
DeleteThank you everyone for updating me on the new rules. I stand corrected
DeleteThe top four rule change would allow Nexstar to own two of the top four stations in that market, if I understand it correctly. It's all a bit confusing and the FCC is either going to be very busy or simply rubber stamp these consolidations.
ReplyDeleteThats my understanding too. What I'm not clear on is whether triopolies, quadopolies, and quintopolies will be expressley allowed going forward. There are a few cases where failing station waivers have been used to create them, as well as other cases where various agreements allow one company to manage stations owned by another company, giving them defacto duopolies, triopolies, and what not. So there is some precedent towards allowing them.
DeleteNot good for employees or viewers. If you think these companies are run on the cheap now, just wait.
ReplyDeleteThe rules have drastically changed under this new administration and all of the station groups have been waiting for this moment. The industry shift will continue after this Tegna sale. Look for other movement in the months to come. I’d imagine Sinclair, even with their apparent financial situation, to make a move. I mean, they do seem to have the administration’s favor with their approach/reporting. (See the FAA drone approval)
ReplyDeletePoor finances drive these mergers. They are not the product of strength but weakness. The merging companies will rely on scale to cut costs and find “efficiency” that will, before too long, show up in diminished product and audience. It’s a short term game.
ReplyDeleteA short term game that will only end in a less informed society, which is worrisome on so many levels.
DeleteMuch like Elvis' films were all done on the "make 'em quick, make 'em cheap" formula, Nexstar (like Sinclair, TEGNA and other media owners) follow the same formula when it comes to potential job applicants and employees: "Hire 'em cheap, work 'em cheap".
ReplyDelete