In a deal to combine two major players in the local TV station biz, Nexstar Media Group said it reached an agreement to buy Tegna in a transaction valued at $6.2 billion.
The purchase price is inclusive of Tegna’s net debt and estimated transaction fees and expenses. The deal, subject to regulatory approval including by the FCC, is expected to close by the second half of 2026. Both the Nexstar and Tegna boards voted unanimously to approve the deal Monday night.
Nexstar, the biggest U.S. TV station group, has just over 200 owned or partner stations. Tegna has 64 stations across the U.S. Upon closing of the Tegna deal, Nexstar and its partners will have 265 full-power television stations in 44 states and Washington, D.C., covering 132 of the country’s 210 television markets covering 80% of U.S. TV households, the companies said. The combined company will have stations in nine of the top 10 markets, and in 41 of the top 50.
The new company “will be better able to serve communities by ensuring the long-term vitality of local news and programming from trusted local sources and preserving the diversity of local voice and opinion,” Nexstar and Tegna said in announcing the pact.
In a call with analysts later Tuesday, Nexstar chairman and CEO Perry Sook said Nexstar projects the combined company will generate over $8 billion in revenue and $2.6 billion in earnings, based on the past two years of quarterly results. Additionally, Nexstar estimates $300 million in cost-savings synergies as a result of the deal, which it expects to realize within the first 12 months after the deal closes.
“Financially, this will put next in the same leg as Fox and Paramount in terms of EBITDA, solidifying our position in the broader industry conversations in a real and meaningful way,” Sook said.
The FCC, under Trump-appointed chairman Brendan Carr, in June launched an initiative seeking public comment on whether to “modify, retain or eliminate” the 39% national audience reach cap on local TV ownership. Carr, speaking in May the Milken Institute Global Conference, said the FCC should reform what he called “arcane artificial limits” on TV station ownership. And in July, the 8th U.S. Circuit Court of Appeals vacated the FCC’s rule barring a station group from owning more than one of the top four TV stations in a given market.
Sook called out the FCC and the White House moves to deregulate the local TV sector as driving the deal.
“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 that have unchecked reach and vast financial resources,” Sook said in a statement announcing the deal. “We believe Tegna represents the best option for Nexstar to act on this opportunity.”
Nexstar’s previous deals have included its $4.1 billion acquisition of Tribune Media in 2019 and its acquisition of a majority stake in the CW in 2022.
Tegna chairman Howard Elias said in a statement: “At Tegna, we share Nexstar’s commitment to local broadcasting, exemplified by numerous investments and initiatives, industry journalism awards, and the significant expansion of our local news content. This transaction, which will provide premium near-term value to Tegna shareholders, comes at a time of rapid change in our industry and reflects the fact that policymakers of all perspectives are calling for regulations governing our industry to be modernized.”
Mike Steib, Tegna’s CEO, added, “We are thrilled to have found a partner in Nexstar that will enable Tegna’s stations to continue doing what we do best: creating outstanding and impactful local content coupled with the delivery of indispensable digital products to the communities we serve around the country.”
News of the Nexstar-Tegna deal comes after Sinclair, another major local TV broadcaster, announced it was exploring strategic alternatives for its TV business and potentially other assets. Last week, Sinclair announced the sale of its NewsOn local broadcast streaming platform to a company called Zeam.
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