Nexstar to Acquire Tegna for $3.54 Billion in a Major Local TV Deal

Nexstar Media Group has agreed to acquire rival Tegna for $3.54 billion in a major deal for the local TV industry. The acquisition will expand Nexstar's reach and make it one of the largest owners of local TV stations in the US. The deal is expected to close in Q3 2023, subject to regulatory approval.

Nexstar Media Group has agreed to acquire rival Tegna for $3.54 billion in a significant deal for the local TV industry. The acquisition will expand Nexstar's reach and make it one of the largest owners of local TV stations in the United States. The deal, which is subject to regulatory approval, is expected to close in Q3 2023.

Nexstar will acquire all outstanding shares of Tegna for $22.00 per share in cash, valuing the transaction at $6.2 billion, including debt [1]. The purchase price represents a 31% premium to Tegna's average 30-day average stock price ending August 8, 2025 [2]. This acquisition will combine two leading local media companies with a strong commitment to localism and superior programming.

The combined entity will have 265 full-power television stations in 44 states and the District of Columbia, covering 80% of U.S. television households [2]. This expanded footprint will enhance Nexstar's presence in key DMAs such as Atlanta, Phoenix, Seattle, and Minneapolis. The transaction is expected to generate annual net synergies of approximately $300 million from revenue synergies and net operating expense reductions [2].

Nexstar expects the deal to be more than 40% accretive to its standalone Adjusted Free Cash Flow in the first twelve months after closing [2]. The combined company's net leverage ratio is expected to be approximately 4x at closing, with de-leveraging to current leverage levels by 2028 [2].

The acquisition is seen as a test for the FCC to loosen local TV station ownership rules as it gets set to rule on the Nexstar-Tegna agreement [1]. The deal is expected to close by the second half of 2026 [2].

References:
[1] https://www.imdb.com/news/ni65435057/?ref_=nwc_art_perm
[2] https://www.nexstar.tv/nexstar-media-group-inc-enters-into-definitive-agreement-to-acquire-tegna-inc-for-6-2-billion-in-accretive-transaction/