Nexstar Broadcasting suspending sale talks

[easttxtv]

http://www.dallasnews.com/sharedcontent/dws/bus/stories/DN-nexstar_04bus.ART.State.Edition1.35a8649.html

Nexstar suspends sale talks due to weak debt market

12:00 AM CDT on Saturday, August 4, 2007
By ERIC TORBENSON / The Dallas Morning News

Irving-based Nexstar Broadcasting Group said Friday that it has suspended talks with potential buyers because the market for debt financing has weakened.

The move was yet another sign that the buyout frenzy fueled by private equity dollars and hedge funds may be grinding to a halt as banks tighten credit standards and raise borrowing costs.

(more of the article at the link above)

 

[arnoldevns]

Interesting note. One wonders if this will keep Fox from selling the stations they announced they're going to get rid of?

 

[stationi]

No surprise, the vast majority of Nexstar stations are in undesirable markets and the company is losing money.

 

[The Voice of Reason]

No surprise, the vast majority of Nexstar stations are in undesirable markets and the company is losing money.

Apparently no one at Nexstar ever heard of the old saying "in order to make money you have to spend money." Instead the company believes that cheap is the best way to go. Another example is the way Nexstar treats their employees. When contracts are up for renewal people are given the option of signing a new contract that contains a reduction in salary or they are shown the front door. Plus any potential buyer would have to come in a spend a small fortune just upgrading the equipment at some Nexstar stations. So its no wonder that with banks and other lending instutions cutting back on handing out loans that Nexstar made the decision to hold off on sales talks.