Nexstar to buy Tegna for $3.5 billion in latest TV deal
Nexstar Media Group Inc. has agreed to buy TV station operator Tegna Inc. for $3.5 billion in a cash deal that stands to dramatically expand Nexstar’s reach to 80% of U.S. households and test the Trump administration’s appetite for consolidation.
The takeover values Tegna at $22 a share, the companies said in a statement Tuesday. That’s a 44% premium to the company’s stock price on Aug. 8, when shares surged on reports that the two companies were in talks. Including debt and transaction fees, it values Tegna at $6.2 billion.
The merger would combine Irving, Texas-based Nexstar, a broadcaster with more than 200 owned or partner outlets, with Tegna, the operator of 64 stations, accelerating consolidation in a sector that’s been battered by declining viewership and a shift in advertising dollars to digital platforms. Both companies have recently cited regulatory changes in the U.S. and court rulings that could pave the way for mergers.
Tegna shares were up nearly 4.5% in premarket trading at $21.08, trading about a dollar below the deal price. The stock had jumped 10% this year through Monday’s close.
TV station owner Sinclair Inc., one of the largest owners of television stations in the U.S., had also offered to combine its broadcast TV business with Tegna, according to a person with knowledge of the matter. Nexstar’s market value stands at about six times that of Sinclair.
The Federal Communications Commission is rethinking a cap on how large station owners can become. In July, an appeals court overturned the so-called “top four” rule, which bars a station owner from running two of the four top stations in a single market.
Both Nexstar and Tegna operate stations affiliated with ABC, CBS, NBC and Fox. Nexstar also owns the CW network and NewsNation. The deal is subject to regulatory and shareholder approvals, and the companies said they expect it to close in the second half of 2026.
In some respects, the transaction marks a reversal of fortunes for the two companies. In 2019, Nexstar agreed to sell 11 stations to Tegna for $740 million.
The sale would mark Tegna’s second attempt at a takeover. The company agreed in February 2022 to be acquired by Standard General LP in a $5.4 billion transaction that fell apart after a long regulatory review.