The National Association of Black Owned Broadcasters (NABOB) is pleased to see the announced acquisition by Bayou City Broadcasting (Bayou) of FOX Television affiliate KADN, KADN.2- NBC affiliate and NBC affiliate KLAF-LD, in Lafayette, Louisiana from Nexstar Broadcasting Group, Inc. The purchase price is $40 million.
NABOB is pleased to see this acquisition for a number of significant reasons. Unlike several recent transactions in which African American owners have purchased stations connected with larger media companies through joint sales agreements (JSAs) and/or shared services agreements (SSAs), the Bayou transaction is a completely independent transaction. Bayou will have no JSA or SSA agreements, and it has obtained its financing independently with no loan guarantees from a major broadcaster.
NABOB is also pleased because this makes DuJuan McCoy — the owner and operator of Bayou, and member of the NABOB Board of Directors — a multiple station operator. In January, 2015, Mr. McCoy purchased WEVV- CBS and FOX D2 and WEEV-LD FOX in Evansville, Indiana, from Nexstar. That Mr. McCoy is making his second purchase from Nexstar speaks well for Mr. McCoy and also for Perry Sook, CEO of Nexstar.
Mr. McCoy said, “Perry Sook, CEO of Nexstar should be commended for his continued and conscious effort to improve the dearth of ownership of broadcast TV stations by women and minorities. By doing so, he is helping the FCC further its diversity initiatives while at the same time setting a great example for other broadcasters – large or small, to take note and join his efforts to help self-regulate an endemic industry problem.”
In response to the announcement, Jim Winston, President of NABOB said, “NABOB is very excited to see this transaction. We are pleased to see DuJuan McCoy continue to grow his business, and to see Perry Sook and Nexstar in the midst of another positive development for African American television station ownership.” Winston added, “The Bayou transaction is pure standalone ownership, which is NABOB’s long term goal for all transactions. We are delighted to see DuJuan McCoy and Bayou continue to grow standalone African American television station ownership.”
As a reminder, NABOB will host it’s 40th Annual Fall Broadcast Management Conference and 16th Power of Urban Radio Forum on October 12-13, 2016 at the Washington Marriott Georgetown Hotel.
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