PresentationMichael NgResearch Analyst Great. Thank you, everybody. Welcome to the Nexstar fireside chat at the Goldman Sachs Communicopia and Technology Conference. I have the privilege of introducing Perry Sook, Chairman and CEO at the Nexstar Media Group. And alongside him is Lee Ann Gliha, who's the CFO of Nexstar. Perry founded Nexstar in 1996 and has over 40 years of professional experience in the television broadcasting industry. This is actually the first time Goldman has hosted the company at the c ...

Nexstar Media Group (NasdaqGS:NXST) 2025 Conference September 08, 2025 02:30 PM ET Company ParticipantsMichael Ng - MD - Global Investment ResearchPerry A. Sook - Chairman & CEOLee Ann Gliha - EVP & CFOMichael NgGreat. Thank you, everybody. Welcome to the Nexstar Fireside Chat at the Goldman Sachs Communications and Technology Conference. I have the privilege of introducing Perry Sook, Chairman and CEO at Nexstar Media Group. Alongside him is Lee Ann Gliha, who is the CFO of Nexstar. Perry founded Nexstar i ...

Question-and-Answer SessionBrian Fenske Great. So let's get right into it. Perry, you spent over 2.5 decades scaling Nexstar's local broadcast TV assets. You've been a vocal champion of the industry. They are helping the industry deregulate with the recent announcement of the acquisition of TEGNA as well. We've seen the FCC make a number of positive comments and supported deregulation. In fact, we had a member of the FCC here yesterday. What makes you confident that you'll be able to achieve regulatory appr ...

Core Insights - Nexstar is focusing on local media as a lucrative opportunity, aiming to build a dominant position in this space, which is often overlooked compared to national media [2][4] - The company announced a $6.2 billion acquisition of Tegna, which would significantly increase its control over local media, owning 265 stations across 44 states and the District of Columbia, covering 80% of U.S. TV households [3][4] - There is a potential easing of ownership restrictions by the FCC, which could allow Nexstar to expand its influence in local broadcasting [4][5] Company Strategy - Nexstar emphasizes the importance of local connections with viewers and advertisers, contrasting its diversified revenue base with the concentrated nature of national media [2][6] - The company has a history of acquisitions, including Tribune Media for $7.2 billion in 2019 and Media General for $4.6 billion in 2017, indicating a strategy of growth through consolidation [7] - The CEO believes that the future of local broadcasting will see further consolidation, with only a few major players remaining, highlighting the need for strong companies to compete against big tech [8]

Summary of Nexstar Media Group (NXST) 2025 Conference Call Company Overview - **Company**: Nexstar Media Group (NXST) - **Industry**: Local Broadcast and Media Key Points and Arguments Regulatory Environment and Deregulation - Nexstar is optimistic about achieving regulatory approval for the acquisition of Tegna, citing a favorable environment under the Trump administration focused on deregulation [3][4][6] - The FCC is expected to eliminate the national ownership cap, which is crucial for the Tegna acquisition [7][8] - A unity petition from major broadcasters, including Nexstar, supports the elimination of outdated regulations, emphasizing competition against big tech rather than among traditional broadcasters [5][6] Local Media Strategy - Nexstar focuses on the local media space, which is seen as a less competitive but more stable revenue source compared to national media [9][10] - The company has a diverse customer base with over 43,000 different customer skews, providing a more resilient revenue model [10][11] - Nexstar's local sales force and journalistic resources create a competitive moat that is difficult for new entrants to replicate [11][12] Tegna Acquisition - The Tegna acquisition is viewed as a continuation of Nexstar's successful consolidation strategy, with significant overlap in markets [14][15] - The company anticipates synergies from the acquisition, although the current market has seen companies rationalizing their cost bases, leaving less room for cost-cutting [15][16] Future of the Media Industry - Nexstar predicts increased consolidation in the local broadcasting industry, potentially leading to only a few major players [19] - The company believes that maintaining a free and independent press at the local level is essential for democracy and consumer choice [19][49] Sports Broadcasting - Nexstar views the entry of unbundled sports streaming products from ESPN and Fox as potentially neutral or beneficial for the pay-TV ecosystem [21][22] - The company has seen positive ratings growth in sports programming, indicating a strong viewer engagement [25][30] The CW Network - Nexstar is on track for The CW to break even by 2026, having transformed its programming to include more sports content while reducing costs [26][27] - The CW has experienced growth in primetime audience ratings, indicating a successful turnaround [27][29] Advertising Revenue - The advertising market has been stable despite macroeconomic challenges, with Nexstar benefiting from a diversified revenue base [32][33] - Political advertising is expected to increase by 20% in the upcoming midterm cycle, with broadcast media remaining a preferred choice for candidates [34] Cord Cutting Trends - The company observes a potential stabilization in cord-cutting trends, with a focus on retaining subscribers interested in sports and live news [36][37] NewsNation Network - NewsNation has evolved into a 24/7 news channel with significant growth in awareness and viewership, employing the largest number of journalists in the U.S. [39][40] - The network aims to provide balanced news coverage, appealing to a broad audience [43][44] Spectrum and ATSC 3.0 - Nexstar is optimistic about the potential of ATSC 3.0 technology, which allows for more efficient use of spectrum and new revenue opportunities [53][54] - The company plans to leverage its existing infrastructure to capitalize on the benefits of ATSC 3.0, including potential applications in GPS and data casting [61][62] Capital Allocation Strategy - Nexstar plans to use excess free cash flow to pay down debt following the Tegna acquisition, aiming for a leverage ratio of around 4x by the time of closing [62][63] Additional Important Insights - The company emphasizes the importance of local journalism and the role of local broadcasters in providing unbiased news [49][52] - Nexstar's leadership expresses confidence in the future growth and opportunities within the local media industry, particularly in light of regulatory changes and technological advancements [52][56]

Question-and-Answer SessionJason BazinetCitigroup Inc., Research Division No, that's great. I'm super excited about this conversation just because it seems a little bit different, given how much interesting stuff is going on at your firm right now, given the pending transaction. So I would just like to start with a high-level question. If I step back and look at the last, I don't know, 5 years, 6 years, all of the big media companies went out and did acquisitions. They focused on national assets, didn't rea ...

Nexstar Media Group (NXST) 2025 Conference September 03, 2025 08:50 AM ET Company ParticipantsJason Bazinet - DirectorPerry A. Sook - Chairman & CEOLee Ann Gliha - EVP & CFOJason BazinetHere today, including Perry Sook, CEO, and Lee Ann Gliha, CFO. Thank you both for coming.Perry A. SookThank you for having us today.Jason BazinetNo, it's great. I'm super excited about this conversation just because it seems a little bit different given how much interesting stuff is going on at your firm right now, given the ...

Core Viewpoint - Nexstar Media Group announced the acquisition of Tegna, Inc. for $6.2 billion, marking a significant development in the media merger landscape [3]. Group 1: Acquisition Details - Nexstar is already the largest owner of broadcast television stations in the U.S. and aims to enhance its scale and revenue through this acquisition [3][6]. - The deal is expected to generate approximately $300 million in synergies, primarily through cost-cutting measures [6]. - Tegna's corporate journey has been tumultuous, having been spun off from Gannett in 2015 and facing a failed merger attempt with Standard General in 2022 [5]. Group 2: Regulatory Considerations - The acquisition may exceed the existing nationwide cap on the percentage of U.S. households that one TV station ownership group can reach, raising potential regulatory challenges [7]. - The broadcasting industry has long sought to lift this cap, but significant legal and regulatory hurdles remain, particularly in the context of the current political landscape [8]. Group 3: Market Dynamics - The regional sports network (RSN) market has been struggling, leading to gains for local broadcasters as teams shift their broadcasts to local stations [10][11]. - Local broadcasters have seen significant increases in ratings and engagement as teams like the Phoenix Suns and Florida Panthers move away from RSNs [11]. - The competition for local sports rights is expected to intensify, potentially benefiting broadcasters as they seek reliable content to attract viewers [12]. Group 4: Network and Affiliate Relationships - The relationship between major networks and local affiliates is evolving, with networks increasingly requiring affiliates to contribute to the costs of national sports rights [13][14]. - There is a risk that powerful entities like Nexstar may resist paying affiliate fees, prompting networks to explore direct partnerships with local cable operators [14].

Group 1: Hong Kong Stocks - Chow Sang Sang (00116) surged over 18%, expecting a mid-term profit attributable to shareholders of approximately HKD 900 million to 920 million [1] - XPeng Motors (09868) rose over 4%, reporting a 125.3% year-on-year revenue growth in Q2, achieving a historical high for a single quarter [1] - Sunny Optical Technology (02382) increased over 6%, with a 52.56% year-on-year rise in mid-term profit attributable to shareholders for the six months ending June 30, 2025 [1] - China Gold International (02099) gained over 3%, reporting a turnaround to profitability in the first half of 2025, supported by a rich resource reserve and stable production [1] - Hansoh Pharmaceutical (03692) fell over 8%, announcing a 6.5% discount on a placement to raise nearly HKD 3.9 billion for innovative drug development [1] - Pop Mart (09992) rose over 6%, with adjusted net profit in the first half of 2025 increasing 3.6 times year-on-year [1] - Kunlun Energy (00135) dropped over 3%, reporting a 4.36% year-on-year decrease in mid-term profit attributable to shareholders for the first half of 2025 [1] Group 2: Other Stocks - Gilead Sciences (01672) fell over 8%, announcing a placement to raise a net amount of HKD 468 million, while its controlling shareholder cashed out nearly HKD 390 million [2] - Yixin Group (02858) rose over 1%, reporting a 28% year-on-year increase in adjusted net profit for the first half of 2025, with financial technology revenue soaring 124% [2] - Lithium stocks declined, with Ganfeng Lithium (01772) and Tianqi Lithium (09696) both dropping nearly 6%, amid inventory pressure in the lithium carbonate spot market [2] Group 3: US Stocks - Palo Alto Networks (PANW.US) rose 3.06%, exceeding expectations in Q4 earnings and providing optimistic guidance for future earnings [3] - BHP Group (BHP.US) increased 0.51%, reporting dividends exceeding expectations despite weak iron ore and coal prices [3] - NIO (NIO.US) rose 4.11%, with its L90 model delivering 6,400 units in 20 days since launch, with the factory operating at full capacity [3] - New Oriental (EDU.US) fell 2.79%, influenced by a drop in Oriental Selection's stock, while denying regulatory investigation rumors [3] - Viking Therapeutics (VKTX.US) plummeted 42.12% after reporting adverse side effects in its experimental obesity drug trials [4] - Arm (ARM.US) dropped 5.00%, as it hired Amazon's AI chip director to advance its chip development plans [4] - Home Depot (HD.US) rose 3.17%, reaching a new high since January, with Q2 net sales meeting market expectations [4] - Best Buy (BBY.US) increased 3.20%, launching a third-party online shopping platform to expand product variety [4] - Nexstar Media Group (NXST.US) rose 0.65%, announcing a $6.2 billion acquisition of Tegna [4] - Aurora Innovation (AUR.US) fell over 8%, closing down 7.14% after a short-seller report questioned its profit potential [5] - Boeing (BA.US) dropped 3.19%, with Airbus A320 deliveries expected to surpass Boeing's soon [5]

Acquisition Overview - Nexstar Media Group is acquiring Tegna for $6.2 billion in cash, creating a significant local TV broadcasting entity as the industry anticipates regulatory changes to facilitate consolidation [1][12] - The acquisition values Tegna shares at $22 each, reflecting a 31% premium over the company's average trading price prior to the announcement [1][9] Competitive Landscape - Nexstar outbid rival Sinclair, which had offered between $25 and $30 per share, despite Sinclair's lower market capitalization of $1 billion compared to Nexstar's $6.3 billion [2][3] - Sinclair is burdened with over $4 billion in debt, complicating its ability to pursue major acquisitions [3] Strategic Rationale - Nexstar's CEO Perry Sook emphasized that the deal aligns with the Trump administration's deregulatory policies, allowing local broadcasters to enhance their reach and compete against larger tech and media companies [4] - The merger will expand Nexstar's presence in key metropolitan areas such as Atlanta, Phoenix, Seattle, and Minneapolis, thereby strengthening its national coverage [4][11] Operational Synergies - The combination of Tegna's television properties with Nexstar's extensive station network is expected to reinforce Nexstar's dominance in local broadcasting [7] - Sook highlighted Nexstar's successful acquisition history, including the purchase of Tribune Media, and outlined strategies to enhance local programming and achieve cost efficiencies [7][8] Industry Context - The deal comes at a challenging time for traditional linear television, as broadcasters face competition from streaming platforms and tech companies for viewers and advertising revenue [12] - The merger is seen as a means for stations to better compete in a fragmented media landscape [12]