Nexstar to Acquire Tegna in $6.2 Billion Deal, Expanding Local TV Reach

Nexstar Media Group has reached a definitive agreement to merge with Tegna in a deal valued at $6.2 billion, including debt. The transaction will see Nexstar acquire all outstanding shares of Tegna for $22.00 per share in cash. Tegna's board of directors has approved the merger, under which Tegna’s debt will be refinanced or settled upon the completion of the agreement. Nexstar, which already controls around 299 owned or partner TV stations, has secured financing from a consortium of investment banks to facilitate the transaction.

This merger, while subject to regulatory approvals, particularly from the FCC, reflects Nexstar's goal to expand its reach and influence in local TV markets. Once finalized, the combined company will operate 265 local TV stations across 44 states and the District of Columbia, encompassing 132 of Nielsen's Designated Market Areas (DMAs). The merged entity will cover an impressive 80% of U.S. TV households, with stations in nine of the top 10 DMAs and 41 of the top 50 DMAs.

David Perry A. Sook, Nexstar’s chairman and CEO, applauded the merger as a strategic move to position Nexstar more competitively against Big Tech and established media giants. He highlighted how the merger aligns with current regulatory trends under the Trump administration, which has prioritized media deregulation as a means for broadcasters to expand and compete more effectively.

Tegna's CEO, Mike Steib, expressed enthusiasm about the partnership, emphasizing the shared commitment between Nexstar and Tegna to enhance local content delivery and maintain a strong digital presence. Steib underscored that the merger provides Tegna with additional resources and scale to continue its legacy of creating impactful local content.

Economically, the purchase price reflects a 31% premium to Tegna’s average 30-day stock price as of August 8. Tegna's shares had been rising amid speculation of an acquisition, reinforcing the anticipated financial synergies from the merger. Nexstar projects annual cost savings of approximately $300 million derived from revenue synergies and reduced expenses as a result of merging operations.

The merger's completion, anticipated by mid-2026, depends on approval from Tegna's shareholders and several regulatory bodies. The discussions around this deal have sparked debate over media consolidation and the potential impact on local content diversity. However, Nexstar has committed to maintaining diversity in local voices and opinions through robust community-oriented programming.

Historically, Nexstar has grown rapidly through strategic acquisitions, including its $4.1 billion purchase of Tribune Media in 2019 and acquiring a majority stake in the CW in 2022. This strategic pattern places Nexstar at the forefront of a shifting media landscape driven by deregulation and technological change.

News of the Nexstar-Tegna merger arrives on the backdrop of broader industry movements, such as Sinclair's exploration of strategic alternatives for its TV business. The trend toward consolidation continues to reshape the local TV landscape as companies strive to adapt to evolving market dynamics and audience preferences.

Overall, the Nexstar-Tegna deal marks a significant milestone in the consolidation of local television businesses, promising substantial changes in how local news and content are produced and delivered across numerous markets. The deal underlines an industry actively pursuing growth and competitive advantages through scale and strategic partnerships amidst regulatory and technological transformations.