A D.C. Circuit Court ruling that tossed aside a challenge to the restoration by the FCC of its so-called “UHF Discount” helped a bevy of broadcast TV stocks see healthy gains Wednesday on Wall Street.
At the Closing Bell, some big winners were seen among those publicly traded companies that own UHF and VHF stations across the U.S.
Nexstar Media Group saw its shares rise 2.7%, to $77.45, as the company eyes another stab at surpassing $80 in value.
Sinclair Broadcast Group was also up — even though its merger with Tribune Media remains in jeopardy. SBGI shares rose 3.8%, to $27.05.
Tribune Media stock rose 3.3%, to $33.92, while Gray Television experienced a more modest 1.3% gain, to $15.20.
For TEGNA, shares were up 3.6%, to $11.17.
It is Nexstar’s climb that’s worth noticing. The company that in 2017 completed its merger with Media General is still hungry, and with Cox Media Group seeking a partner or merger candidate, perhaps Perry Sook is looking for an opportunity for his company or a TVB member broadcast company.
It was 14 days ago that Reuters reported Apollo Global Manangement LLC was considering in buying Nexstar. Nothing has been said since. But, given yesterday’s announcement a combination of Nexstar with Cox’s 14 stations could be a possibility.
Cox owns stations in Orlando, Jacksonville, Memphis, Atlanta, Dayton, Tulsa, Pittsburgh, Seattle, Boston and Charlotte.
Nexstar’s lone Florida properties are in Tampa. It does not have stations in Atlanta, nor in Pittsburgh, Seattle, Boston, Charlotte or Tulsa.
But, Nexstar already has a duopoly in Memphis, and in Dayton — and those would need to be considered for divestment should a marriage with Cox be in the cards.
Thus far, there are no possible suitors mentioned as a merger or partnership entity for Cox Media Group, which insists it is not looking to sell its 14 TV stations.
