Benchmark Comments On Nexstar Acquisitions

According to Benchmark, Nexstar Broadcasting Group NXST announced the acquisition of two CBS affiliates (Green Bay, WI and Marquette, MI) from Liberty Media (LINTA-Not Rated) yesterday for $17.5 million in cash and $2.5 million in stock. Benchmark reported that the $20 million acquisition price represents a multiple of less than 5x the average estimated 2010-2011 cash flow and is expected to be immediately accretive upon closing. “We believe the acquisition could add an estimated $14 million to Nexstar's revenues and $5 million in EBITDA on an annual basis. The acquisition is expected to close in 4Q10.” Nexstar Broadcasting Group closed yesterday at $8.99.