Nexstar Media Group (NXST) Citi’s 2025 Global Technology, Media and Telecommunications Conference summary

Strategic focus on local assets and scale

• Emphasis on building a durable business through local TV station acquisitions, leveraging strong relationships with viewers and advertisers for long-term stability.

• Local infrastructure and relationships create a competitive moat, making it difficult for new entrants to replicate the business model.

• Scale provides negotiating leverage, cost rationalization, and best practice implementation, with revenue growth driven by distribution.

• The pending TEGNA acquisition will expand reach to over 80% of the U.S. population and control more than 20% of local TV inventory.

• Larger market presence and overlapping markets with TEGNA offer significant synergy and efficiency opportunities.

Regulatory environment and M&A strategy

• Favorable regulatory momentum at the FCC and administration supports potential elimination or relaxation of ownership caps.

• There is urgency to complete transactions before potential political changes, with NPRMs on ownership rules expected soon.

• The company is prepared to use free cash flow to fund acquisitions and pay down debt, accruing cash until deal closure.

• Integration playbook refined over 40 acquisitions, with a focus on communication, management, and achieving or exceeding synergy targets.

• $300 million in synergies expected from the TEGNA deal within the first year, with potential for upside as detailed integration progresses.

NewsNation and The CW transformation

• NewsNation evolved from a three-hour primetime newscast to a 24/7 cable news network, leveraging a national network of journalists for balanced, breaking news coverage.

• NewsNation is profitable, growing in awareness, and recognized for balanced reporting, with a focus on expanding programming and reach.

• The CW pivoted from scripted entertainment to live sports, now dedicating over 40% of its schedule to sports, resulting in higher viewership and broader reach.

• Investment in sports rights has paid dividends for both the network and local stations, with ongoing opportunities for additional rights acquisitions.

• The strategy for both NewsNation and The CW centers on leveraging distribution strength and live content to differentiate in a fragmented media landscape.