Trump Backs Nexstar's $6.2 Billion Tegna Acquisition in Bid to Counter 'Fake News'

U.S. President Donald Trump has publicly endorsed Nexstar Media Group's proposed $6.2 billion acquisition of Tegna, a deal that would significantly expand Nexstar's media footprint. In a post on Truth Social, Trump argued the merger would increase competition and reduce the influence of 'Fake News'. This marks a reversal from earlier criticisms of the deal, where Trump had raised concerns about 'Radical Left Networks' expanding their reach according to CNBC reporting.

The acquisition, announced in August 2025, is expected to close in the second half of 2026, pending regulatory approvals. Nexstar, which operates over 200 stations, would gain Tegna's 64 stations, covering roughly 80% of the U.S. population. The combined entity would hold a stronger position in retransmission fee negotiations with cable and satellite providers, a key revenue stream for local stations.

Market analysts are closely monitoring how the deal impacts Nexstar's stock performance and broader media consolidation trends. Nexstar recently declared a $1.86 per share quarterly dividend, maintaining a stable payout while conserving cash for the acquisition.

Why Did This Happen?

Trump's support for the Nexstar-Tegna deal reflects a strategic shift in his stance on media regulation. Months earlier, he had criticized the proposed merger, warning against expanding 'Radical Left Networks' and calling for scrutiny of their role in disseminating biased content as reported by CNBC. The recent endorsement suggests a focus on countering misinformation through stronger, more competitive media entities according to Intellectia.

This shift may also align with broader regulatory efforts to modernize broadcast ownership rules. The Federal Communications Commission (FCC) has been reviewing outdated caps on local television station ownership, arguing that such restrictions no longer reflect today's competitive landscape dominated by streaming platforms as detailed in economic analysis.

How Did Markets React?

Nexstar and Tegna stocks saw modest gains following Trump's endorsement. Nexstar rose by 1.45%, while Tegna increased by 0.32%. Investors are interpreting Trump's backing as a potential easing of regulatory hurdles, which could boost investor confidence and attract capital to Nexstar.

Analysts note that while the stock's forward yield of 3.59% is attractive, its valuation is currently near historical highs. This suggests that the market is already factoring in a positive outlook for the acquisition. However, concerns remain about Nexstar's high leverage, with a debt-to-equity ratio of 2.8.

What Are Analysts Watching Next?

The next critical milestone for the deal is the February 26, 2026 earnings report for Tegna. Investors will be scrutinizing the company's ability to maintain operational stability in the absence of significant political advertising revenue as outlined in acquisition timelines.

Analysts are also monitoring the regulatory landscape, particularly the FCC's ongoing review of media ownership rules. Deregulating these caps could facilitate further consolidation in the sector, reshaping the media landscape according to economic analysis.

Capital Management Corp's recent reduction of its Nexstar stake by $5.82 million signals some caution among institutional investors. Despite this, Nexstar remains in the firm's top five holdings, suggesting continued long-term confidence.

The broader implications for media consolidation remain uncertain. While some fear reduced diversity of voices, others argue that consolidation could lead to economies of scale that enhance local news production and improve journalistic standards as research indicates.

Conclusion

Trump's endorsement of the Nexstar-Tegna merger highlights the intersection of political influence and media regulation. While the deal's completion in 2026 is still pending, its potential impact on the media landscape, regulatory policy, and market dynamics is already generating significant investor interest according to market analysis.

The coming months will test both Nexstar's financial strategy and the evolving regulatory framework that governs media consolidation in the United States as reported by financial sources.