Nexstar Enters Into Definitive Agreement to Acquire BestReviews, a Leading Consumer Product Reviews Company, for $160 Million in Accretive Transaction

Rhea-AI Summary

Nexstar Inc., a subsidiary of Nexstar Media Group (Nasdaq: NXST), announced the acquisition of BestReviews from Tribune Publishing for $160 million. This deal is poised to enhance Nexstar's digital content portfolio and revenue streams. BestReviews, known for its independent product recommendations, attracts 9 million monthly visitors and has impacted over 300 million consumer purchases. The transaction, expected by year-end 2020, aligns with Nexstar's strategy of leveraging its media properties to increase reach and advertising revenues.

Positive

• Acquisition of BestReviews valued at $160 million is immediately accretive to Nexstar's results.
• BestReviews has a strong audience base with 9 million monthly visitors and a profitable revenue share model.
• The acquisition diversifies Nexstar's digital content, enhancing its market presence and revenue channels.
• Nexstar's strategy aims at leveraging existing media assets to boost content syndication and advertising revenues.

Negative

• None.

Nexstar Inc., a wholly-owned subsidiary of Nexstar Media Group, Inc. (Nasdaq: NXST), announced today that it entered into a definitive agreement to acquire leading consumer product recommendations company BestReviews from Tribune Publishing Company (Nasdaq: TPCO) for $160 million in a transaction that is immediately accretive to Nexstar’s operating results.

BestReviews simplifies the way consumers buy products and services across thousands of categories by independently researching, analyzing, and testing products and recommending the best picks. The company maintains an audience of 9 million monthly visitors and has helped more than 300 million consumers make informed purchases of consumer products and services. BestReviews monetizes its content through a revenue share model with its retail partners against all sales generated by BestReviews.

In addition to the reviews on its site, bestreviews.com, BestReviews also produces seasonal, lifestyle and how-to articles with integrated links to retailers distributed across their publisher network, including Tribune Publishing’s media properties. The volume of content currently authored by BestReviews includes over 8,000 product categories covering over 40,000 product reviews on behalf of a diverse and growing network of over 50 retail partners.

Commenting on the proposed transaction, Tom Carter, Nexstar President, Chief Operating Officer, and Chief Financial Officer stated, “The planned accretive acquisition of BestReviews diversifies our digital content portfolio while presenting the company with new and significant revenue channels by leveraging our media content, national reach and significant consumer digital usage across multiple platforms. With Nexstar owned and operated digital properties ranking number one by Comscore for local news and information in terms of unique users, we are ideally positioned to quickly scale BestReviews through increased content syndication and brand awareness.

“Financially, by adhering to our disciplined acquisition and integration criteria, we are acquiring a fast-growing digital product review company with a profitable and scalable business model at an attractive pro forma EBITDA multiple. Nexstar will continue to focus on select strategic digital investments that complement and enhance our existing content offerings while creating new opportunities to drive shareholder returns.”

Karen Brophy, Nexstar Inc. President, Digital, added, “The acquisition of BestReviews reflects Nexstar’s broader content monetization strategy and will enable the company to reach new audiences while better connecting with their existing consumers through an integrated content strategy across Nexstar’s 400+ digital touchpoints. BestReviews also provides unique consumer insights to drive higher-margin advertising revenues for local and national advertisers across Nexstar’s digital assets. Nexstar is committed to developing and executing the company’s strategic local content and viewer engagement initiatives while developing new marketing solutions for advertisers. The acquisition of BestReviews further strengthens Nexstar’s core product offering by adding new content and gathering expert and user-generated insights that help build consumer confidence in products. This will allow Nexstar to strengthen its focus on distributing content consumers want most. Also, retailers and brands can now leverage a larger network of consumers through increased content syndication to the nation’s largest local broadcast and media company.”

The transaction is subject to Hart-Scott-Rodino clearance and customary closing conditions and is expected to close by 2020 year-end.

About Nexstar Media Group, Inc.

Nexstar Media Group (NASDAQ: NXST) is a leading diversified media company that leverages localism to bring new services and value to consumers and advertisers through its traditional media, digital, and mobile media platforms. Its wholly-owned operating subsidiary, Nexstar Inc., consists of three divisions: Broadcasting, Digital, and Networks. The Broadcasting Division operates, programs, or provides sales and other services to 197 television stations and related digital multicast signals reaching 115 markets or approximately 39% of all U.S. television households (reflecting the FCC’s UHF discount). The division’s portfolio includes primary affiliates of NBC, CBS, ABC, FOX, MyNetworkTV, and The CW. The Digital Division operates 122 local websites and 316 mobile apps offering hyper-local content and verticals for consumers and advertisers, allowing audiences to choose where, when, and how they access content and creating new revenue opportunities for the Company. The Networks Division operates WGN America, a growing national general entertainment cable network and the home of NewsNation, multicast network Antenna TV, and WGN Radio in Chicago. Nexstar also owns a 31.3% ownership stake in TV Food Network, a top tier cable asset. For more information please visit www.nexstar.tv.

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FAQ

What is the purpose of Nexstar's acquisition of BestReviews?

The acquisition aims to diversify Nexstar's digital content and create new revenue channels by leveraging existing media assets.

What is the financial value of the BestReviews acquisition?

Nexstar acquired BestReviews for $160 million.

How will BestReviews benefit Nexstar's business model?

BestReviews will enhance Nexstar's content portfolio, attract new audiences, and increase advertising revenues across digital platforms.

When is the BestReviews acquisition expected to close?

The transaction is expected to close by the end of 2020, pending regulatory approval.

What audience does BestReviews reach?

BestReviews has an audience of approximately 9 million monthly visitors.