Once again the Aereo legal roller coaster has whipped up after a steep downward turn. Less than a week after being slapped with a 6-state injunction, the Barry Diller-backed streaming service today has won a 14-day reprieve – a move that will not please broadcasters who thought they’d scored their biggest legal win yet over Aereo. “The court also recognizes that harms are accruing to Plaintiffs every day and enforcement of the copyright laws is a clear public benefit to the public as a whole,” said District Judge Dale Kimball in his decision (read it here) that also denies Aereo a stay pending appeal. The judge also ordered the broadcaster plaintiffs to post a $150,000 bond before any injunction could even start. Of course it is less than two months before Aereo and the broadcasters will be arguing their greater respective case, so to speak, in front on the Supreme Court on April 22 when the battle could reach its climax or just another sharp corner.
In the meantime, Aereo has a new life in Utah and surrounding states. “The court, however, finds some benefit in allowing Aereo’s customers uninterrupted service pending the Tenth Circuit’s decision on an emergency motion to stay. Therefore, notwithstanding the many factors weighing against a stay, the court, in its discretion, grants Aereo a temporary 14-day stay,” Kimball’s move keeps Aereo going … Read More »
As broadcasters and Aereo wait to see if the Supreme Court will agree to the former’s recent petition to hear the case against the latter, the Barry Diller-backed streaming service has been sued a second time this week in the state of Utah. And today ABC and CW affiliates owner Nexstar Communications filed a motion for a preliminary injunction (read it here) to shut Aereo down during the course of the litigation from the copyright infringement complaint it filed on Thursday. Launched in NYC last year and already in several other cities across the nation, the much-sued Aereo premiered in Utah on August 19. Fox Broadcasting along with local stations KSTU-TV, KUTV-TV and KMYU-TV filed a suit against Aereo on October 7. Now Nexstar, who own 91 TV stations across America, have jumped into the legal war. “Aereo’s conduct thus has constituted and will constitute willful copyright infringement…Unless enjoined by this Court, Aereo will continue to cause Nexstar great and irreparable injury that cannot be fully compensated or measured in money,” says the 9-page complaint that the Texas-based company filed on October 24 (read it here). The owners of Salt Lake City-based ABC affiliate KTVX and CW affiliate KUCW, Nexstar wants a jury trial, unspecified statutory and actual damages, and, as the motion they filed today reiterates, … Read More »
This builds on Nexstar’s effort to bulk up with help from its election year windfall from sales of political ads. In today’s deals, the company paid Newport Television $35.4M for a CBS affiliate in Fresno, an NBC/CW station in Bakersfield, and a low-powered Telemundo affiliate there. In addition, Nexstar agreed to pay Mission broadcasting $17.1M for the Fox and ABC affiliates in Burlington, Vt. The FCC has to bless the arrangements before they can take place; Nexstar expects them to close early next year. They follow the company’s deal in July to buy 12 stations in markets including Salt Lake city, Little Rock, and Memphis.
Here’s today’s release: Read More »
Newport is Providence Equity’s holding company for the collection of TV stations the private equity firm bought in 2007 from Clear Channel. Investors seem to like Nexstar’s $285.5M agreement today for 12 Newport stations; Nexstar shares are +5.2% at mid-day. Sinclair is more complicated: In addition to the $412.5M it’s paying for six Newport stations, Sinclair agreed today to pay $40M for Tampa-based Bay Television. Sinclair shares are -1.6%. Privately held Cox is paying $302M for its four stations.
Here’s the release: Read More »
The suit at U.S. District Court in northern Texas involves an interesting quirk in Time Warner Cable’s retransmission consent dispute with Hearst, which since July 9 has left more than 2M cable customers in 11 markets without access to the broadcaster’s programming. The No. 2 cable company is filling the gap in some of its communities by importing signals from Nexstar’s CBS affiliate in Rochester, NY and NBC affiliates in Terre Haute, Ind. and Wilkes Barre, Penn. It’s usually illegal for a pay TV provider to import a signal from a distant station — especially without its consent. Nexstar is asking the court to force Time Warner Cable to pull the plug. Nexstar says that the cable company is infringing on the copyright for its local newscasts, and is “irreparably harming Nexstar’s goodwill with its national networks and advertisers.” On Friday the company filed an emergency petition to the FCC seeking an injunction and sanctions against Time Warner Cable. “Nexstar intends to pursue all legal and regulatory remedies to cause Time Warner to cease and desist misappropriating signals,” the broadcaster says. But Time Warner Cable says that its carriage of the Nexstar signals “is fully authorized by the retransmission consent agreement between the parties.” The company adds that it is “disappointed that Nexstar is working to assist and expand Hearst’s leverage against us and our customers.” It says that it will fight “this aggressive and coercive … Read More »
It will take years before most ad sales will hit the peaks that TV stations saw in 2007, Moody’s Investors Service analyst Carl Salas says this morning in an industry report. Local businesses have been slow to increase their spending after the economy tanked in 2008 and 2009 — and now broadcasters must compete for those dollars against websites, social media, digital displays and other emerging media. Sure, stations will see some extra cash from retransmission consent deals with pay TV providers. But it won’t be a windfall: Major networks are demanding reverse compensation agreements from their affiliates, giving the national broadcasters much of the dough collected by the stations that they used to pay to carry their programs. Read More »
The nine-station acquisition includes ABC affiliates in Denver, Indianapolis, San Diego, and Bakersfield, CA. When the transaction is complete, 10 of Scripps’ 19 stations will be ABC affiliates – making it the largest independent owner of ABC stations. McGraw-Hill’s other stations are low-power affiliates of Spanish language network Azteca America. Wells Fargo analyst Marci Ryvicker says this morning that the terms are “a positive for the broadcast TV space” because they reaffirm the value of stations at a time when potential buyers are growing concerned about the prospects for the ad market. Nexstar is still looking to sell. McGraw-Hill wanted to unload its stations as it prepares to split into two companies, and deal with shareholder concerns that it has become too unfocused. Here’s the release: Read More »
The owner of 65 stations in 36 markets joins McGraw-Hill, Freedom, and Young Broadcasting in the ranks of TV owners looking for buyers. Analysts say that Nexstar could fetch about $1B. Its stations reach 11.6% of all households, and include affiliates of NBC, CBS, ABC, FOX, MyNetworkTV, The CW, LATV, TV Azteca and Telemundo. Potential buyers may want in as stations prepare to collect potentially record breaking ad revenue from political candidates in 2012. But Fox recently yanked its affiliation agreements with Nexstar stations in Fort Wayne and Evansville, Indiana in disputes over how much revenue the network should collect from the retransmission consent payments that the stations receive from cable and satellite operators.
Irving, TX (July 21, 2011) – Nexstar Broadcasting Group, Inc. (NASDAQ: NXST) announced today that its Board of Directors has decided to explore and evaluate strategic alternatives intended to maximize shareholder value, including a possible sale of the Company. The Company has retained Moelis & Company as its financial advisor and Kirkland & Ellis LLP as its legal counsel.
The Company has not made a decision to pursue any specific strategic transaction or other strategic alternative and there is no set timetable for the process, so there can be no assurance that the exploration of strategic alternatives will result in a sale of the Company or any other transaction. The Company does not intend to disclose developments with respect to the progress of its strategic
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