Nexstar's $3.5B Acquisition of Tegna: A Game-Changer for Broadcast History

Nexstar Media Group has acquired Tegna for $3.5 billion, creating a broadcasting powerhouse with stations reaching 80% of US homes. The deal marks a comeback for Tegna, whose previous sale to Standard General was blocked by regulators. Nexstar expects to close the deal in H2 2026, pending approvals. The acquisition aims to provide scale and retransmission fees to help Nexstar navigate declining audiences and ad dollars.

Nexstar Media Group, Inc. (Nasdaq: NXST) has entered into a definitive agreement to acquire Tegna Inc. (NYSE: TEGNA) for $6.2 billion in an accretive transaction. The acquisition, which is subject to regulatory approvals, involves a cash transaction at a price of $22.00 per share, representing a 31% premium to Tegna's average 30-day average stock price ending August 8, 2025 [1].

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. Upon closing, Nexstar will have a presence in 9 of the top 10 DMAs, 41 of the top 50 DMAs, 62 of the top 75 DMAs, and 82 of the top 100 DMAs. This acquisition aims to enhance Nexstar's operational and geographic diversity and scale, strengthening its position in the fragmented and rapidly evolving media landscape [1].

Nexstar expects to generate annual net synergies of approximately $300 million from the transaction, with the combined Adjusted Free Cash Flow expected to be more than 40% accretive to Nexstar's standalone Adjusted Free Cash Flow in the first twelve months after closing. The transaction is expected to close by the second half of 2026, pending necessary approvals [1].

The acquisition follows Nexstar's strategy of improving and increasing local content, executing on identified synergies, and quickly de-leveraging its balance sheet with free cash flow post close. Nexstar's Chairman and Chief Executive Officer, Perry A. Sook, commented that the transaction will enable Nexstar to expand its reach and compete more effectively with Big Tech and Big Media companies [1].

TEGNA's Chairman of the Board of Directors, Howard Elias, shared that the transaction reflects the rapid changes in the industry and the need for modernized regulations. Mike Steib, Chief Executive Officer of Tegna, expressed excitement about the partnership, which will enable Tegna's stations to continue creating outstanding local content and digital products for communities across the country [1].

References:
[1] https://www.tegna.com/nexstar-media-group-inc-enters-into-definitive-agreement-to-acquire-tegna-inc-for-6-2-billion-in-accretive-transaction/