{"id":512995,"date":"2022-11-20T18:25:00","date_gmt":"2022-11-20T15:25:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/nexstars-next-battle-making-the-cw-numbers-work\/"},"modified":"2022-11-20T18:25:00","modified_gmt":"2022-11-20T15:25:00","slug":"nexstars-next-battle-making-the-cw-numbers-work","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/nexstars-next-battle-making-the-cw-numbers-work\/","title":{"rendered":"#Nexstar\u2019s Next Battle: Making The CW Numbers Work"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a28d0cf6ecbd\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a28d0cf6ecbd\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/nexstars-next-battle-making-the-cw-numbers-work\/#Nexstars_Next_Battle_Making_The_CW_Numbers_Work\" >Nexstar\u2019s Next Battle: Making The CW Numbers Work<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"Nexstars_Next_Battle_Making_The_CW_Numbers_Work\"><\/span>Nexstar\u2019s Next Battle: Making The CW Numbers Work<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    In the end, Nexstar was paid $54 million to take The CW off of Paramount and Warner Bros. Discovery\u2019s hands. <\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    Actually, that\u2019s an oversimplification. In fact, Nexstar, led by CEO Perry Sook, was given its 75 percent stake in the network <em>for free<\/em>, but after factoring in its cash on hand, accounts receivable and accounts payable (and other liabilities), the local TV giant ended up with its $54 million gain \u201con bargain purchase,\u201d reflecting just how seriously its former corporate owners were ready to move on. <\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    The national broadcast network (a distant number 5) had long been known to be a money pit, but a review of unaudited financial statements shed some light on the complex finances of the network, and just how big of a challenge it will be for Nexstar to turn its fortunes around to meet its goal of profitability by 2025.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    According to a <em>Hollywood Reporter<\/em> analysis of the financial statements that were included in Nexstar\u2019s latest quarterly filing with the SEC on Nov. 9, The CW had revenue of about $100 million per quarter in 2021-22, for an annual run rate of $370 million to $405 million. However, it had annualized losses of between $300 million and $400 million. In other words, for every dollar it took in, as many as $2 were flowing out. (The CW has never turned a profit since being formed in 2006.) The largest source of expenses for The CW was programming, and it acquired that programming from Warners and Paramount, making it economical for the joint owners. <\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    The network has consisted exclusively of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">script<\/a>ed originals produced by both Warners and CBS Studios, supplemented by a few unscripted shows and low-cost Canadian <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> acquired to help flesh out its slate. While the network wasn\u2019t designed to turn a profit, both studios were making money thanks in part to a 2010 $1 billion Netflix output deal, as well as international sales for well-known titles like <em>Dynasty<\/em>.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    While that model proved extremely fruitful, the network\u2019s parent companies opted against extending the Netflix deal in order to bolster their respective streamers, HBO Max and Paramount+, with CW programming instead of seeing all of their originals land on Netflix. What\u2019s more, the need for all streamers to retain global programming rights as platforms expand into foreign markets meant an end to those lucrative international sales. Without revenue streams from Netflix and foreign sales, The CW\u2019s business model no longer made sense, and Warners and CBS Studios began exploring sale options,  leading to the sale to Nexstar. <\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    And while other suitors (including at least one private equity firm) kicked the tires, the local TV giant emerged victorious, benefitting from being the largest owner of CW stations in the country (where it can more efficiently monetize political ads, for example). \u201cNexstar believes it was able to acquire The CW for $0 purchase consideration due to the recurring losses of The CW and its position as the largest affiliate of The CW which it believes limited the number of interested acquirers,\u201d the company wrote in its 10-Q.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    Now comes the hard part, as the local TV giant needs to find a way to stem the steep losses The CW is facing. For now, it has agreed to carry 12 scripted series from the previous owners, primarily for the 2022-23 season. But after that, it will turn to new entertainment chief Brad Schwartz to chart a new, much less expensive content strategy. \u201cWe just have to be scrappier. If we do scripted, we have to figure out a smart way of doing it,\u201d Schwartz told <em>THR<\/em> on Nov.\u202f 2. \u201cWe just have to be scrappier. If we do scripted, we have to figure out a smart way of doing it.\u201d<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    Nexstar CFO Lee Ann Gliha told a financial conference that the company intends to take $155 million from the sale of property in Chicago and funnel it to the network. \u201cThat goes a long way to funding the investment that we\u2019re going to have in the CW,\u201d the executive said. <\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    And the company also plans to use The CW to enter the increasingly crowded ad-supported streaming market. \u201cThe acquisition is expected to solidify Nexstar\u2019s revenue opportunities as the largest CW affiliate, diversify its content outside of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>, establish it as a participant in advertising video-on-demand services via The CW App and create value by improving The CW ratings, revenue, and profitability,\u201d Nexstar wrote in the filing.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    And sooner rather than later, the company is likely to acquire the 25 percent of The CW that WBD and Paramount are holding on to. Per its filing, Nexstar has a call option in August 2024 to acquire the remaining stake, and the sellers have an option in June 2026 to force Nexstar to acquire the remaining equity.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    <em>Lesley Goldberg contributed to this report.<\/em><\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    <em>A version of this story first appeared in the Nov. 21 issue of The Hollywood Reporter magazine.\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/subscribe.hollywoodreporter.com\/sub\/?p=THR&amp;f=saleb_2&amp;s=IH2205THRS\">Click here to subscribe<\/a><\/em>.<\/p>\n<\/p><\/div>\n<p><script type=\"text\/plain\" class=\"optanon-category-C0004\">\n!function(f, b, e, v, n, t, s) {\nif (f.fbq) return;\nn = f.fbq = function() {n.callMethod ? n.callMethod.apply(n, arguments) : n.queue.push(arguments);};\nif (!f._fbq) f._fbq = n;\nn.push = n;\nn.loaded = !0;\nn.version = '2.0';\nn.queue = [];\nt = b.createElement(e);\nt.async = !0;\nt.src = v;\ns = b.getElementsByTagName(e)[0];\ns.parentNode.insertBefore(t, s);\n}(window, document, 'script', 'https:\/\/connect.facebook.net\/en_US\/fbevents.js');\nfbq('init', '352999048212581');\nfbq('track', 'PageView');\n<\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more Like this articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/social-media\/\" target=\"_blank\" rel=\"noopener\">Social Media category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/www.hollywoodreporter.com\/business\/business-news\/cw-nexstar-future-deal-sale-terms-1235266033\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nexstar\u2019s Next Battle: Making The CW Numbers Work In the end, Nexstar was paid $54 million to take The CW off of Paramount and Warner Bros. Discovery\u2019s hands. Actually, that\u2019s an oversimplification. In fact, Nexstar, led by CEO Perry Sook, was given its 75 percent stake in the network for free, but after factoring in&#8230;<\/p>\n","protected":false},"author":1,"featured_media":512996,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/www.hollywoodreporter.com\/wp-content\/uploads\/2022\/11\/35rep_CW_MAIN.jpg?w=1024","fifu_image_alt":"","footnotes":""},"categories":[17],"tags":[135885,134624,1579],"class_list":["post-512995","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-social-mediaa","tag-business-features","tag-nexstar","tag-the-cw"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/512995","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=512995"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/512995\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/512996"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=512995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=512995"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=512995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}