America’s largest television station owner Nexstar Media Group has struck a US$6.2bn deal to acquire fellow broadcast company Tegna.
Perry Sook
The companies said on Tuesday they had entered a definitive agreement for Nexstar to acquire all outstanding shares of Tegna for US$22 per share in a cash transaction that includes all of Tegna’s debt.
With the deal, which still requires regulatory approval from the Federal Communications Commission (FCC), the combined entity will have 265 television stations in 44 states, including 132 of America’s 210 designated market areas and nine of the top 10 markets in the US.
The transaction is expected to close by the second half of 2026, with the companies saying the combined entity will be “well-positioned to compete in today’s fragmented and rapidly evolving marketplace.” They added that the new company will be “better able to serve communities by ensuring the long-term vitality of local news and programming from trusted local sources and preserving the diversity of local voice and opinion.”
When combined, Nexstar, which is the owner of US broadcast network The CW, and Tegna generated a combined US$8.1bn in revenue and US$2.56bn in adjusted earnings over the past two years. Nexstar said it will look for US$300m in synergies following the deal.
Nexstar may face some competition for Tegna from Sinclair Group, which had also been lining up a potential merger deal, according to a report in the Wall Street Journal published after Tuesday’s announcement.
The deal will also need to pass muster with the FCC, which has been weighing whether or not to change the current ruling that prevents local TV companies from exceeding a 39% national audience reach.
Earlier in the summer, the FCC launched a proceeding seeking public comments on whether it should “modify, retain or eliminate” the current regulation.
The Trump administration has indicated it is open to deregulating and relaxing existing local station ownership rules, as the shift in consumption habits continues to put downward pressure on the business model.
“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. We believe Tegna represents the best option for Nexstar to act on this opportunity,” said Nexstar chairman and CEO Perry Sook.
“At Tegna, we share Nexstar’s commitment to local broadcasting, exemplified by numerous investments and initiatives, industry journalism awards, and the significant expansion of our local news content.
Howard Elias, chairman of Tegna’s board of directors, added: “This transaction… comes at a time of rapid change in our industry and reflects the fact that policymakers of all perspectives are calling for regulations governing our industry to be modernised. This transaction with Nexstar will further solidify the critical role our stations serve in our communities, preserve their trust, and be better able to compete in today’s highly fragmented media environment.”
