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Nexstar will sell three stations to African-American-owned Marshall...

Nexstar will sell three stations to African-American-owned Marshall Broadcasting and operate them under a sharing arrangement with Nexstar, subject to FCC approval of the $58.5 million deal, Nexstar said in a news release Friday (http://bit.ly/1utRSGj). MBG will fund the transaction…

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through loans guaranteed by Nexstar, it said. The deal “addresses recent proposed FCC regulation changes while expanding the opportunity for minority broadcasters to play a greater role in the U.S. broadcasting industry as owners and operators of television stations,” said MBG owner Pluria Marshall. The FCC Media Bureau in March announced increased scrutiny for transactions involving sharing arrangements, and the full FCC enacted new rules for attributing ownership in sharing arrangements involving as sales. Both new policies pointed to public interest benefits as possible justifications for sharing arrangements, and the dearth of African-American-owned stations was discussed during the buildup to the rule changes (CD March 14 p9). Nexstar said it will provide sales and other nonprogramming services to MBG “allowing MBG to use Nexstar personnel for engineering support, master control, traffic and billing, and other administrative functions that do not relate to control of the stations or their programming.” The stations involved in the deal are Fox affiliates KMSS-TV Shreveport, KPEJ-TV Odessa, Texas, and KLJ Quad Cities, Davenport, Iowa, said Nexstar.