Merger of parent companies could lead to sale of one Terre Haute TV station

Nexstar and Media General on Wednesday announced the deal valued at $4.7 billion, including the assumption of debt. The sales agreement must still go before shareholders, but will likely close in the fourth quarter of this year, according to Nexstar. The new company will be named Nexstar Media Group.

Nexstar is the parent company of NBC affiliate WTWO, while Media General is the parent company of CBS/Fox affiliate WTHI. Mission Broadcasting owns WAWV, which carries ABC programming; that station is managed by WTWO.

WTHI, located at the corner of Eighth and Ohio streets in Terre Haute, is about 17 miles from the WTWO studio, located south of Farmersburg in Sullivan County.

The Tribune-Star on Thursday sought comment from local TV station management by phone and email.

Todd Weber, general manager of WTHI, did not respond to the newspaper's request.

Tim Sturgess, vice president/general manager of WTWO, replied by email, declining comment at this time. He did, however, forward a statement from Nexstar CEO Perry Sook, who addressed "overlap markets" in cities where the newly formed company would own all market broadcast stations. The Tribune-Star confirmed that Terre Haute is considered an overlap market.

“Obviously to comply with current FCC rules we will have to sell either the Nexstar or the Media General station in these markets," wrote Sook, who also holds the title of Nexstar chairman/president. "With the transaction just announced [Wednesday] we have made no hard and fast decisions. Since the transaction will not close until the fourth quarter of this year we have some time to deliberate so it is business as usual for the foreseeable future," he stated.

Sook further noted that once a decision is made, it would be communicated quickly to the stations. He also referenced staffing needs. "Remember, each one of the affected stations will be sold to an out of market buyer who will need a full team to compete with us and other media outlets in these markets," Sook stated.

The Nexstar/Media General agreement was reached only after Meredith Corp. agreed to terminate a binding merger agreement it entered into with Media General on Sept. 8, 2015. Meredith Corp., which owns broadcast stations and magazines such as Better Homes and Gardens and Martha Stewart Living, reports it will receive a $60 million termination fee and an opportunity to negotiate for the purchase of certain broadcast and digital assets currently owned by Media General.

The sales agreement will likely mean fewer jobs in the new company. Nexstar states it expects about $76 million in "synergies" or cost reductions and efficiencies a year after the merger, as operations are combined. Of that, $27 million is from personnel reductions and eliminating redundant professional services and other costs, according to the company.

Jeffrey McCall, professor of communication at DePauw University, speculated earlier this month that if Nexstar reached an agreement to buy Media General, it would have to sell one of its local properties.

McCall told the Tribune-Star that the FCC doesn't consider network affiliations, but rather ownership of the only television stations in a given market, like Terre Haute.

“In Indianapolis, Tribune Broadcasting owns CBS Channel 4 and Fox 59, which is unusual in this day and age, but it is easier to have that happen in Indianapolis where there are other competing owners, such as E.W. Scripps Co., which owns WRTV Channel 6,” he said. “But in Terre Haute, if there would only be one owner for all TV stations, the FCC may raise its eyebrows about that. The [lack of] diversity of ownership, to have one company own all the TV outlets in one community, is probably not a good thing.”

The new Nexstar Media Group will own or operate 171 television stations in 100 markets across the nation, generating annual revenue of more than $2.3 billion, according to Nexstar.