Nexstar Media Group is buying rival Tegna for $6.2 billion in cash, creating a local TV broadcasting giant as the industry bets on regulatory changes to unleash consolidation.
The acquisition prices Tegna shares at $22 each — representing a 31% premium over the company’s average trading price before news of negotiations surfaced.
Nexstar, whose subsidiaries include NewsNation, TV Food Network and a constellation of local affiliates in several large markets, beat out rival Sinclair, which was offering between $25 and $30 per share, significantly above Nexstar’s winning bid.
But Sinclair is worth just $1 billion compared to Nexstar’s $6.3 billion market cap, making it the industry David trying to beat Goliath.
Making matters worse, Sinclair is drowning in over $4 billion of debt that would complicate any major acquisition.
Sinclair pitched splitting off its side businesses — including Tennis Channel and other investments — and combining its core broadcast operation with Tegna’s 64 stations, according to the Wall Street Journal.
Nexstar CEO Perry Sook hailed the deal with Tegna, adding that the Trump administration’s deregulatory policies give local broadcasters chances to “expand reach” and “level the playing field” against Big Tech and major media corporations.
The merger will bring Nexstar into key metropolitan areas like Atlanta, Phoenix, Seattle and Minneapolis, strengthening its nationwide coverage.
Howard Elias, chair of Tesla’s board, pointed to the industry’s transformation, noting that lawmakers across the spectrum are pushing for updated broadcasting rules.
The combination pairs Tegna’s television properties with Nexstar’s extensive station network, reinforcing its status as a dominant force in local broadcasting.
Sook highlighted his company’s history of successful acquisitions, such as its purchase of Tribune Media six years ago.
He outlined a familiar strategy: enhance local programming, realize cost efficiencies and use strong cash generation to reduce borrowing.
“We believe Tegna represents the best option for Nexstar to act on this opportunity,” Sook stated, citing Tegna’s quality stations in major demographic markets.
Tegna’s chief executive Mike Steib expressed enthusiasm about partnering with a like-minded broadcaster committed to local news.
“Together, we will expand news coverage to serve more communities, across more screens,” Steib said in the announcement.
The deal was announced amid a difficult period for linear television as conventional broadcasters battle streaming platforms and tech companies for viewers and advertising revenue.
Elias noted the merger would enable stations to “be better able to compete in today’s highly fragmented media environment.”
The deal is contingent on regulatory approval, though both firms expressed optimism about the review process.
