United States

Nexstar Media Group announced on August 19 that it plans to acquire Tegna, a smaller rival broadcasting company, for $3.54 billion. This significant transaction is expected to amplify Nexstar’s influence in the television industry, potentially allowing it to reach 80% of U.S. television households.

Tegna owns and operates 64 television stations and networks across the nation. In contrast, Nexstar already owns or partners with over 200 stations, including affiliations with networks such as CW and NewNation. The acquisition marks a strategic move for Nexstar to extend its reach in key markets.

The agreement was made in a cash transaction, with all outstanding Tegna shares valued at $22 per share. This price represents a 31% premium compared to Tegna’s average stock price over the previous 30 days, as of August 8. The Board of Directors at Tegna has approved the deal, and it is anticipated to close in the second half of 2026, pending regulatory approval.

Strategic Expansion and Market Impact

The merger is reported to enhance Nexstar’s representation in major California cities, including Sacramento and San Diego, where Tegna’s presence is limited to two TV stations, while Nexstar operates six. This acquisition may make Nexstar the top local TV station owner in the U.S.

If finalized, Nexstar will surpass competitors such as Sinclair Broadcast Group, Gray Television, E.W. Scripps Company, and Hearst Television in the ranking of local TV station owners. The major U.S. broadcast networks—ABC, CBS, NBC, and FOX—control approximately 52 local TV stations and are significant in determining editorial content and branding decisions.

Industry Responses and Concerns

The acquisition is seen as a response to increased competition from digital platforms and reflects efforts by broadcasters to alleviate regulatory restrictions that limit ownership levels. Nexstar has been a proponent of changes to FCC ownership rules, which would facilitate further station acquisitions.

Additionally, the merger is anticipated to strengthen the local broadcasting capabilities of both Nexstar and Tegna, particularly in leveraging some recently obtained sports rights. However, public interest groups have raised concerns that such consolidation may diminish competition and adversely impact local news coverage.

Background on Tegna

Tegna was previously involved in merger discussions with private equity partners Standard General and Apollo Global Management, but those negotiations ended due to regulatory challenges. The acquisition deal with Nexstar indicates a new path for Tegna in the evolving media landscape.

Both Tegna’s and Nexstar’s stock prices experienced a rise following the announcement of this acquisition, signifying investor confidence in the merger’s potential benefits.

FAQs

What is the purchase price for the Tegna acquisition?

The acquisition is valued at $3.54 billion, with Tegna’s shares set at $22 per share.

What impact will the acquisition have on market share?

If approved, Nexstar is expected to reach 80% of U.S. television households and become the top local TV station owner in the country.

When is the deal expected to close?

The acquisition is anticipated to close in the second half of 2026, pending regulatory approval.

What are some concerns regarding the acquisition?

Public interest groups are concerned that the consolidation might reduce competition and negatively affect local news coverage.

What was Tegna’s previous attempt prior to the Nexstar deal?

Tegna previously sought a merger with private equity partners Standard General and Apollo Global Management, but that deal fell apart due to regulatory issues.

Key Features of the Nexstar-Tegna Acquisition