Stocks Dip As Nexstar-Media General Deal Closes

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Investors seem a bit nervous about uncertainties following the inauguration of Donald Trump as the 45th President of the United States on Friday. That sent the Dow Jones Industrials Average down 58.96, to 19,826.77, and the Nasdaq Composite down 35.39, to 5,538.73. Discovery Communications was the lone gainer among media stocks, climbing 1.5% to $27.81.


Decliners include Entravision, which was hammered by an analyst’s downgrade, and Beasley, which slid 11.8%, to $6. While there’s no clear explanation, it could be tied to new allegations from former WBRN-FM/Tampa air talent Bubba The Love Sponge that Nielsen colluded with Cox Media Group – Bubba’s second of three Tampa Bay employers – in setting him up in a ratings tampering scandal that has resulted in a $1 million lawsuit filed by Nielsen against the host.

On the TV side, Nexstar Broadcasting Group at long last completed its $4.6 billion acquisition of Media General and the divestitures of 13 television stations for $548 million. Investors got the news after market close, with NXST shares falling 3.6%, to $61.25, and MEG shares off 1.5%, to $18.51 – likely due to concerns that the financial windfall from the FCC’s spectrum auction will not be as grand for TV broadcast companies as originally predicted.

 

The RBR Radio Index fell 24.922, or 4.13%, to 578.756.
The TVBR Television Index fell 34.822, or 3.57%, to 940.277.

 

Gainers

Discovery, up 1.5%

 

Decliners

Entravision, down 13.2%

Beasley, down 11.8%

Gray, down 5.2%

 

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Adam R Jacobson is a veteran radio industry journalist and advertising industry analyst with general, multicultural and Hispanic market expertise. From 1996 to 2006 he served as an editor at Radio & Records.