The Fox and NBC television stations in Lafayette are being sold for $40 million.
Nexstar Broadcasting Group Inc. is selling Fox affiliate KADN-TV and NBC affiliate KLAF-LD to minority-led Bayou City Broadcasting Lafayette Inc.
Bayou City Broadcasting Lafayette is owned by affiliates of Boston private equity firm Bain Capital Credit LP and Houston-based Bayou City Broadcasting LLC, which is owned by DuJuan McCoy.
McCoy serves as Bayou City Broadcasting Lafayette’s president and chief executive officer and was involved in a 2015 purchase of an Indiana television station from Nexstar.
The two Lafayette stations are among five that Nexstar is selling as a result of its $4.6 billion acquisition of Media General Inc. to satisfy local and national television ownership rules.
The rules do not limit the number of TV stations a single group can own nationwide, as long as those stations collectively reach no more than 39 percent of all U.S. TV households.
Nexstar said it plans to sell additional stations in the near future so it can fall within the 39 percent cap.
Between them, Nexstar and Media General own or are affiliated with 177 stations, reaching just over 40 percent of U.S. households, according to a news release.
Nexstar said the Lafayette deal represents an opportunity for minority television station owners to play a greater role in the U.S. broadcasting industry, a key initiative of the Federal Communications Commission.
Bayou City Broadcasting LLC was founded by McCoy in Texas in December 2007, according to its website. Its first TV acquisition in 2008 included seven stations in west Texas that Bayou City sold in 2012. In January 2015, Bayou City Broadcasting acquired WEVV-TV, CBS and Fox affiliates in Evansville, Indiana, from Nexstar for $18.6 million. McCoy is a native of Indiana.
Bain Capital is a private equity firm with more than $75 billion in assets under management. Its industry investments include consumer and retail, financial and business services, health care, industrials, and technology, media and telecommunications.
The Nexstar-Media General deal has been the source of some controversy.
In February, Nexstar stations KLAF, KADN and My Network TV Acadiana temporarily blocked their signals from being aired over Cox Communications. The signal blocking came during a dispute over how much Nexstar wanted Cox to pay for including its programming as part of a basic cable package. Cox had asked federal regulators to block the merger, complaining that Nexstar planned to pay for the deal by jacking up the price it charged cable companies to carry programming from its stations.
Nexstar said it just wanted fair compensation for the value of its local programming.