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Nexstar’s $6.4 Billion Tribune Buy Spurs More Dealmaking

Big deal: Nexstar has agreed to purchase Tribune for $6B in the latest deal to further consolidate local broadcast station ownership.

$15B worth of local TV stations have changed hands since 2016.

Why this matters: Nexstar will become the largest broadcast group reaching close to 50% of U.S. homes with stations in 8 of the top 10 markets.

What Nexstar is adding:
1) 42
local TV stations
2) Cable networks WGN America and Food Network (31% stake)

WGN America reaches 77M U.S. homes through traditional pay-TV.

Watch: Online TV Streamer Locast Has an Ambitious Plan to Help Broadcasters

Flashback #1: Ad spending for the 2018 midterms reaches nearly $3 billion

Flashback #2: Even as Sinclair Aims to Be a Bigger Broadcaster, It’s Building a New Streaming Service Called Stirr

Flashback #3: “Thank God you’re not in newspapers”: Local TV is doing way better than you’d think, a new report suggests

Local TV station revenue normally follows a cyclical pattern based on the political cycle.

Station Revenue by year (TV only):
1) 2010 — $19.4B
2) 2011 — $17.9B
3) 2012 — $20.3B
4) 2013 — $18.4B
5) 2014 — $20.0B
6) 2015 — $18.5B
7) 2016 — $20.6B
8) 2017P — $19.8B
9) 2018P — $21.1B

More #1: National Brands Are Cashing In By Targeting On Local Level.

More #2: What the Nielsen Total Audience Report Expansion Means for Local TV

More #3: Big Brands, Regional Markets

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