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Nexstar Strikes $6.2 billion Deal to Acquire Tegna, Reshaping Local TV Landscape
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Nexstar Media Group and Tegna have finalized a definitive agreement for a merger, a landmark transaction valued at $6.2 billion including debt, set to substantially consolidate the U.S. local television market.
Nexstar Media Group, a dominant force in local broadcasting, has agreed to acquire all outstanding shares of Tegna for $22.00 per share in cash. This strategic move, approved by Tegna’s board of directors, positions Nexstar for substantial expansion, possibly testing the Federal Communications Commission’s (FCC) appetite for loosening local TV ownership rules. The deal also sees Sinclair Broadcast group,another major player,exiting its previous pursuit of Tegna.
A New Colossus in Local Broadcasting
The acquisition propels Nexstar,which currently oversees approximately 299 owned or partner TV stations,into an even more dominant position.The company has secured financing from a consortium of Wall Street investment banks to complete the transaction. Once the merger is finalized, Nexstar will command a formidable presence with 265 local TV stations across 44 states and the district of Columbia.
This expanded portfolio will include stations in 132 of the nation’s 210 Nielsen Designated Market Areas (DMAs). The combined entity is projected to have a important footprint in major markets, reaching 80 percent of U.S. TV households, with stations in 9 of the top 10 DMAs, 41 of the top 50, and 62 of the top 75.
The Regulatory Gauntlet and Deregulation’s Promise
The success of the Nexstar-Tegna merger hinges on crucial regulatory approvals, making it a pivotal moment for the FCC as it considers its stance on local TV station ownership.Nexstar Chairman and CEO Perry A. sook expressed optimism, stating that the initiatives championed by the Trump governance offer local broadcasters a vital opportunity.
“The initiatives being pursued by the Trump administration offer local broadcasters the opportunity to expand reach, level the playing field, and compete more effectively with the Big Tech and legacy Big Media companies that have unchecked reach and vast financial resources,” a company statement conveyed. “We believe Tegna represents the best option for Nexstar to act on this opportunity.”
the broader trend of deregulation under the Trump administration has fueled consolidation within the broadcasting industry, with companies like Sinclair, Gray Television, E.W. Scripps, and Tegna actively exploring mergers and acquisitions.
Financial Upside and Strategic Reach
Nexstar’s offer of $22.00 per share represents a 31 percent premium to Tegna’s average 30-day stock price as of August 8. Shares in Tegna had seen a notable rise in early August as news of active merger talks with Nexstar became public.
The transaction is expected to yield substantial financial benefits, with an estimated $300 million in annual cost savings driven by revenue synergies and expense reductions. This strategic expansion will bolster Nexstar’s presence in key markets such as Atlanta, Phoenix, Seattle, and Minneapolis.
Tegna CEO Mike Steib shared his enthusiasm for the partnership, highlighting
