Nexstar Expands Digital, Buys Internet Broadcasting Systems For $20M

Moving to enlarge its digital business efforts, growing TV station company Nexstar Broadcasting Group has agreed to buy digital publishing platform Internet Broadcasting Systems for $20 million.

Internet Broadcasting's TV station clients including Hearst Television and Post-Newsweek Stations, both of which are also the principal owners of Internet Broadcasting.

The Irving, Texas-based Nexstar owns or operates 74 television stations and 13 digital TV multicast signals reaching 44 markets or approximately 12.1% of all U.S. television households.

It also runs more than 50 Web properties. Two years ago, Nexstar bought another digital platform business, Newport Television and its Inergize digital unit.

Internet Broadcasting Systems operations are expected to expand Nexstar's digital business portfolio to over $45 million in annual revenues.

Perry Sook, chief executive officer of Nexstar, stated: “Nexstar intends to continue to focus on digital investments that allow us to further expand the company’s overall digital media business portfolio, capitalize on emerging market trends to maximize multiplatform audiences and revenue opportunities.”

Although many TV station groups are expanding their digital assets, analysts believe this doesn’t preclude Nexstar from making traditional TV station purchases in the future.

Tags: digital, m&a, media, tv
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