Salesforce's AI Play with Nexstar Media: A Blueprint for Media's Digital Future?

The marriage of Salesforce's AI tools with Nexstar Media's sprawling media empire marks a turning point in how traditional media companies can harness automation to dominate an increasingly digital-first advertising landscape. The partnership, announced this month, isn't just about integrating software—it's a strategic bet on AI-driven operational efficiency as a competitive moat in an industry rife with fragmentation and declining ad revenue.

The Operational Efficiency Play
At its core, the deal revolves around streamlining Nexstar's massive sales operation. With over 200 local TV stations, 1,600 salespeople, and two national networks (The CW and NewsNation), Nexstar's reach is unparalleled. But managing that scale efficiently has long been a challenge. Enter Salesforce's Media Cloud and Agentforce, which promise to inject precision into everything from ad proposal creation to campaign forecasting.

Agentforce's AI agents, for instance, automate tasks like generating customized pitch decks or crunching ad spending forecasts—processes that previously ate up hours of human labor. The result? Sales teams can focus on closing deals rather than paperwork. Nexstar's CTO Brett Jenkins called it a shift toward “smarter, faster, and more impactful solutions.” The real kicker? These AI agents operate 24/7, grounded in Salesforce's Data Cloud, which aggregates both structured and unstructured data to ensure accuracy.

This isn't just about cost-cutting. By unifying Nexstar's sales data onto Salesforce's platform, the company gains a unified view of its entire operation—critical for a business that spans local markets and national networks. The elimination of data silos could unlock new revenue opportunities, such as hyper-localized ad targeting or dynamic pricing models.

Why This Matters for Market Leadership
The U.S. media landscape is in flux. Traditional TV ad revenue has stagnated as audiences shift to streaming, and local stations are under pressure to prove their relevance. Nexstar, which owns stations in 116 markets, needs to demonstrate it can compete with digital giants like Google and Meta.

Salesforce's AI tools could be the equalizer. By automating manual processes and providing real-time analytics, Nexstar can react faster to ad demand, optimize campaigns on the fly, and offer advertisers more granular audience insights. This agility isn't just a defensive move—it's a way to reclaim market share. As Salesforce exec Jeff Amann put it, the partnership aims to “unlock new growth opportunities,” which likely includes expanding into adjacent markets like programmatic ad buying or data-driven content creation.

Salesforce's own financials reinforce the bet. The company reported $9.83 billion in Q1 revenue (up 8% year-over-year) and raised its FY2026 guidance to $41.3 billion. Agentforce, the AI backbone of this deal, already pulls in $100 million annually—a figure that could surge as more media companies follow Nexstar's lead.

Investment Implications
For investors, this partnership is a double-edged opportunity.

Salesforce (CRM): The stock trades at $259.50, well below the $353 analyst target that implies a 36% upside. The Nexstar deal isn't just a one-off—it's a template for Salesforce to upsell its AI tools to other media firms. With Agentforce's multimodal capabilities and Data Cloud integration now battle-tested, Salesforce could carve out a niche in industries like publishing, radio, or even live events.

However, historical performance around earnings announcements tells a different story. A backtest of buying CRM on earnings announcement dates and holding until the next revealed a CAGR of just 0.70% over five years, with an excess return of -68.14%. The strategy faced significant volatility, including a maximum drawdown of -58.86%, and a Sharpe ratio of 0.02—indicating poor risk-adjusted returns. This underscores the importance of looking beyond short-term earnings reactions to Salesforce's long-term AI-driven growth narrative.

Nexstar (NXST): The company's shares have lagged the broader media sector this year, trading at 8.2x EV/EBITDA—a discount to peers like Sinclair Broadcast Group (SBGI). But if the Salesforce integration boosts margins and revenue growth (Nexstar's sales per salesperson could jump 20%+), the stock could see a re-rating. Analysts at Jefferies recently upgraded NXST to “Buy,” citing its scale and AI-driven operational upside.

Risks to Consider:
- AI Implementation Hurdles: Scaling AI across 200+ stations is complex. Missteps could delay cost savings.
- Ad Revenue Headwinds: If the broader economy slows, local advertisers might cut budgets regardless of operational efficiency.
- Competition: Google's Media Services division is also pushing AI tools for TV stations—Nexstar's partnership must deliver clear differentiation.

Final Take:
This deal is a masterclass in leveraging AI to turn scale into an advantage. For Salesforce, it's a showcase for its platform's versatility. For Nexstar, it's a lifeline to stay relevant in a digital world. Investors should monitor Nexstar's sales productivity metrics and Salesforce's Agentforce adoption rates over the next 12 months. Both stocks look primed to reward patient investors willing to bet on AI's transformative power in media.

Disclosure: The author holds no positions in the stocks mentioned.