Nexstar to buy smaller rival Tegna for $3.54 billion in big local-TV deal
Tuesday's deal will expand Nexstar's (NXST.O), opens new tab presence in nine of the top 10 U.S. markets, covering 80% of TV households in the country. That could provide the company, already the largest operator of regional U.S. TV stations, with greater leverage in talks with advertisers and pay-TV distributors.
Nexstar owns or has partnered with others for over 200 stations, while Tegna owns 64. Their deal is the latest in a fast-consolidating U.S. media industry, which is hoping for looser antitrust regulation under President Donald Trump.
Deal-making in the sector has also gathered steam as cable TV operators scramble to adapt to shifting consumer habits driven by cord-cutting and the rapid expansion of streaming.
"The initiatives being pursued by the Trump administration offer local broadcasters the opportunity to expand reach, level the playing field, and compete more effectively with the Big Tech and legacy Big Media companies," Nexstar CEO Perry Sook said.
Nexstar's offer price of $22 per share represents a premium of nearly 44% to Tegna's closing price on Aug. 8, before reports of a deal emerged. The deal is valued at $6.2 billion, including debt and other transaction expenses.
Shares of Tegna climbed more than 3% to $20.85 premarket, adding on to the near 21% gain the stock has seen this month on the expectations of a takeover.
The deal, which is expected to close by the second half of 2026, will boost Nexstar's reach by expanding its presence in key markets such as Atlanta, Phoenix and Seattle and would generate annual net savings of about $300 million.
If Tegna terminates the merger to accept a better offer, it must pay Nexstar $120 million, and if the deal falls through as a result of not securing regulatory approval, Nexstar will pay Tegna $125 million, a regulatory filing with the SEC showed.
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