In a move that could reshape the U.S. television broadcasting landscape, Nexstar Media Group is in advanced discussions to acquire rival Tegna, according to sources familiar with the matter. The talks, which are reportedly nearing completion, could result in a deal soon, provided no last-minute obstacles arise. While specific terms of the potential acquisition remain undisclosed, Tegna, with a market value of approximately $2.5 billion, would be a significant addition to Nexstar’s portfolio, which is valued at around $5.6 billion.
All of this accoridn to The Wall Street Journal’s report. Nexstar, the largest local television broadcaster in the U.S., owns or operates over 200 stations across 116 markets, including national properties like the CW and NewsNation. Tegna, meanwhile, operates 64 television stations in 51 U.S. markets, making it a formidable player in its own right.
The potential acquisition comes at a pivotal moment for the television industry, which is grappling with challenges posed by shifting consumer habits. As more viewers turn to streaming platforms and other non-traditional media, broadcasters are under pressure to consolidate and adapt. Industry experts have long predicted that deregulation would trigger a wave of mergers and acquisitions, and a Nexstar-Tegna deal could serve as a catalyst for further consolidation among other operators.
This isn’t Tegna’s first brush with acquisition interest. In 2022, the company agreed to a $8.6 billion deal, including debt, to be taken private by hedge fund Standard General. However, regulatory hurdles ultimately derailed that transaction, leaving Tegna independent and open to new suitors. The current talks with Nexstar could test the regulatory environment under the Trump administration’s Federal Communications Commission (FCC). FCC Chairman Brendan Carr has been vocal about loosening restrictions on TV station ownership, a stance that aligns with recent industry developments.
A significant regulatory win for broadcasters came late last month when the U.S. Court of Appeals for the Eighth Circuit struck down FCC rules prohibiting a single station group from owning more than one of the top four TV stations by audience share in a given market. This decision has paved the way for larger mergers, potentially easing the path for a Nexstar-Tegna deal.
The broader industry context underscores the strategic importance of such a merger. Other major players, like Cox Media Group, owned by Apollo Global Management since 2019, are also navigating this rapidly evolving landscape. A successful Nexstar-Tegna deal could not only reshape the competitive dynamics of local television but also signal a new era of consolidation as broadcasters seek scale to compete with digital giants.
If completed, the acquisition would combine Nexstar’s extensive network of over 200 stations with Tegna’s 64, creating a powerhouse in local broadcasting. Industry watchers will be closely monitoring the deal’s progress, as it could set the tone for future transactions and provide insight into the FCC’s approach to media ownership under the current administration.
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