Nexstar Media Group to Acquire Tegna for $3.54 Billion

California—On August 19, Nexstar Media Group announced plans to acquire media company Tegna for $3.54 billion, marking a significant consolidation in the broadcasting industry. The acquisition is set to enhance Nexstar’s footprint, potentially covering 80% of U.S. television households following the merger’s completion.

The deal was approved by Tegna’s Board of Directors and involves a cash transaction with all outstanding shares valued at $22 each, representing a 31% premium to Tegna’s average stock price from the previous month. This acquisition not only adds Tegna’s portfolio of 64 television stations to Nexstar’s existing network of over 200 stations but also fortifies Nexstar as the leading owner of local TV stations in the United States. If finalized, it would surpass competitors such as Sinclair Broadcast Group and Gray Television.

As a projected outcome of the merger, Nexstar is expected to enhance its media presence in key California markets, including Sacramento and San Diego, where it currently operates six stations compared to Tegna’s two. The merger promises to combine their strengths in local broadcasting and recently acquired sports rights, further expanding their capacity to provide relevant content to viewers.

Financial Details of the Acquisition

The transaction was structured as a cash acquisition, with a total valuation of $3.54 billion, subject to the approval of regulatory bodies. Tegna’s management expressed enthusiasm about the partnership with Nexstar, highlighting a mutual goal to create impactful local content that resonates with communities.

Market reactions have been positive, with stock prices for both Tegna and Nexstar experiencing an increase following the acquisition announcement. With the merger, Nexstar seeks to respond strategically to the rising digital competition and advocate for easing regulatory restrictions on ownership limits in broadcast media.

Regulatory Considerations and Potential Challenges

Approval of the merger is crucial and is expected to close in the latter half of 2026, pending regulatory scrutiny. The acquisition follows Tegna’s previous unsuccessful merger attempts with private equity partners, which faced obstacles due to regulatory concerns. This current merger is aligned with Nexstar’s ongoing efforts to lobby for changes to Federal Communications Commission (FCC) ownership rules, which would facilitate more potential acquisitions within the broadcasting sector.

Industry Impact and Concerns

The consolidation raises concerns among public interest groups regarding potential reductions in competition and possible negative effects on local news coverage. The merger positions Nexstar at the forefront of local television, with the ability to significantly influence editorial content, staffing, and branding decisions across its extensive network of stations, including those affiliated with major networks like ABC, CBS, NBC, and FOX.

With the merger, Nexstar would take precedence in the local broadcasting arena, resulting in a reshaping of the landscape among leading local TV station owners, while the future of local media transitions in response to evolving viewer needs and expectations.

Projected Ranking of Top Local TV Station Owners Post-Merger

• Nexstar Media Group
• Sinclair Broadcast Group
• Gray Television
• E.W. Scripps Company
• Hearst Television

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