Internet Broadcasting Systems Sold For $20M
Internet Broadcasting Systems, Inc. (IB), a digital publishing firm based in St. Paul, is being acquired by Nexstar Broadcasting Group, Inc., for $20 million.
The deal is expected to close in late March, and Irving, Texas-based Nexstar said it will bring its digital business portfolio to over $45 million in annual revenue.
Thursday calls to Nexstar seeking information about the deal’s impact on IB were not immediately returned, but Nexstar said in a statement that IB will operate as a separate division within its digital media segment. IB, however, will retain its name and its St. Paul office following the deal, and it currently expects its 140 jobs—most of which are based in St. Paul—to remain intact.
In addition to creating original news content with its own digital publishing platform, IB has a digital advertising agency and sales operation. According to the company, some of its largest media clients include Hearst Television and Post-Newsweek Stations, both of which it said recently renewed agreements with IB. Locally, St. Paul-based Hubbard Broadcasting is also one of IB’s larger clients.
“IB’s leading digital publishing platform adds new IP and digital workflows to our digital platform offerings, allowing us to marry best-of-breed digital media practices from our current operations with those of IB to deliver more fully-integrated digital management solutions to IB’s clients and our markets to generate new revenue across multiple digital platforms,” Tom O’Brien, executive vice president and chief revenue officer at Nexstar, said in a statement.
O’Brien added that the acquisition allows Nexstar to enter the digital agency business for the first time: “IB currently has a strong client roster and expertise in this business, and with Nexstar currently owning and operating more than 50 Web properties, we will be in an ideal position to offer enhanced digital services to our customers as well as more innovative multi-platform marketing solutions for local and national advertisers on-air, online, and on mobile devices.”
Nexstar owns, operates, programs, or provides sales and other services to 74 television stations and 13 related digital multicast signals, which it said reaches about 12 percent of all U.S. television households. Its portfolio includes affiliates of NBC, CBS, ABC, FOX, The CW, and others.