Nexstar Media Group in Advanced Discussions to Acquire Tegna Inc. for $8 Billion

Nexstar Media Group is reportedly in advanced discussions to acquire fellow TV broadcaster Tegna Inc. in a deal potentially valued at $8 billion, including debt. Tegna's revenue is projected to decline 18% to 20% YoY in Q3 2022. Tegna stock jumped 30.57% in after-hours trading, while Nexstar Media Group stock dipped 0.43%.

Tegna Inc. (NYSE: TGNA) and Nexstar Media Group Inc. (NASDAQ: NXST) are reportedly in advanced discussions regarding a potential acquisition of Tegna by Nexstar. The deal, valued at approximately $8 billion including debt, could significantly reshape the local television landscape in the United States. Tegna's stock surged 30.57% in after-hours trading on July 2, 2025, following the report, while Nexstar's stock dipped 0.43% [2].

Tegna reported its second-quarter 2025 earnings on July 1, 2025, revealing an earnings per share (EPS) of $0.44, surpassing the forecast of $0.36 by 22.22% [1]. Despite the positive earnings surprise, Tegna's stock fell by 6.45% to $16.36, reflecting broader market concerns and a cautious investor outlook. The company anticipates a challenging third quarter, with a projected 18-20% decline in total revenue year-over-year.

The potential acquisition by Nexstar comes amidst Tegna's ongoing revenue challenges. Tegna's revenue decreased by 5% year-over-year in Q2 2025 to $675 million, with advertising and marketing services revenue declining by 4%. The company achieved 80% of its targeted savings through cost management. Tegna's stock price fell 6.45% post-earnings, nearing its 52-week low of $13.37.

The acquisition would merge Tegna's portfolio of 64 stations across 51 markets with Nexstar's more than 200 owned or partner stations in 116 markets. Nexstar's national assets, including the CW Network and NewsNation, would be bolstered by the addition of Tegna's regional reach. This marks Tegna's second major acquisition attempt in recent years, following its 2022 agreement with Standard General that ultimately collapsed due to regulatory scrutiny.

Positive regulatory developments and stable network partnerships offer optimism for future growth. The eighth US Circuit Court of Appeals recently handed down a decision to vacate the previous FCC's top four prohibition rule, reasoning that the rule was arbitrary and capricious. This ruling, which will take effect following a 90-day period, provides significant opportunities for Tegna and the broader broadcasting industry.

References:
[1] https://www.ainvest.com/news/tegna-q2-earnings-call-digital-growth-cost-cutting-regulatory-progress-revenue-decline-2508/
[2] https://www.investing.com/news/stock-market-news/wsj-reports-tegna-and-nexstar-near-deal-tegna-shares-jump-4181534