Nexstar to buy smaller rival Tegna for $3.54 billion in big local-TV deal

Nexstar Media agreed to purchase the smaller rival Tegna for $ 3.54 billion, and created a local TV power center aimed at competing with major technology and national media for advertising dollars.

Buy TEGNA will expand the existence of Nexstar’s top 10 US markets and cover 80% of TV households in key geographies, including Atlanta, Phoenix and Seattle.

This can give more leverage to Nexstar, the largest US Regional TV Station operator Nexstar, with the loss of income and subscriber loss due to the popularity of local media flow services.

Nexstar’s shares increased by 7% in early transactions, while Tegna’s $ 22 per share won approximately 5% for trade close to the bid price. The proposal values $ 6.2 billion, including the debt, and points to a 44% premium on the closing price of the stock on August 8, before a possible agreement reports appear.

The process is the last of the media and a wave of purchasing, as companies once prepared for a flowing future of companies that were once dependent on fixed cable TV profits. Earlier this year, he united with the Skydance Paramount, while Coming and Warner Bros Bros Discovery announced their plans to divide their business.

Nexstar and Tegna are betting on more loose antitröst policies under US President Donald Trump.

The Federal Communication Commission (FCC) said that in June, 39% of US television households tried to renew a rule covering the ownership of the station in united access. A Court of Appeal has recently overthrew the “best four” rules of the FCC that prevented the ownership of the two senior stations in the same market.

“Attempts followed by the Trump administration, expanding access to local publishers, straightening the playground, and competing more effectively with old major media companies,” Perry Sook, CEO of Nexstar CEO offers the opportunity to compete more effectively, “Nexstar CEO said. He said.

Nexstar has more than 200 stations or business partners and has brands such as CW and Newsnation, while Tegna operates 64 stations and networks, including True Crime Network and Quest.

Companies are waiting for annual cost savings from the agreement. Nexstar provided financing from Bofa Securities, JP Morgan Chase and Goldman Sachs to finance the transaction, which is expected to close to the second half of 2026.

If Tegna terminates the merger to get a higher bid, she needs to pay Nexstar $ 120 million. If the organizers prevent the agreement, the Nexstar will owe Tegna to $ 125 million, according to a prostrate file.

Following a powerful financial fueled by political advertisements, Tegna’s income fell to two neighborhoods, including a 5% decrease in the second place, and the profit fell. Nexstar also reported similar decreases.

Huber Research Partners Analyst Craig Huber said that the agreement would “make it bigger to compete in the market, but will not change things significantly.”

Bofa Securities, JP Morgan Securities LLC and Goldman Sachs & Co. LLC Nexstar’s financial consultants are Allen & Company LLC’s financial advisor to Tegna.

(Reporting by the Critical Lamp in Bengaluru;