Nexstar deal for ABC would be accretive but risky, says Rosenblatt

Rosenblatt says that if Nexstar (NXST) reached a deal to buy Disney’s (DIS) ABC network and TV stations, a deal would be close to 30% free cash flow accretive for Nexstar and be “great for the breakup value argument” for Disney’s equity. However, such a deal would also be risky for Nexstar, adding substantial debt at a time of rising concerns for pay TV, the analyst tells investors in a research note.