Nexstar Media Group Acquires Tegna Inc. for $6.2 Billion

Nexstar Media Group has announced a definitive agreement to acquire Tegna Inc. in an all-cash transaction valued at $6.2 billion, including Tegna's net debt and estimated transaction fees. Under the terms of the agreement, Nexstar will pay $22 per share for all outstanding Tegna shares, representing a 31% premium over Tegna's 30-day average stock price as of August 8, 2025.

This acquisition will combine Nexstar's extensive portfolio of over 200 television stations with Tegna's 64 stations across 51 markets, resulting in a combined entity operating 265 full-power television stations across 44 states and the District of Columbia. The merged company will cover approximately 80% of U.S. television households, including stations in nine of the top ten designated market areas (DMAs).

Nexstar anticipates generating approximately $300 million in annual net synergies through revenue enhancements and cost reductions. The company plans to use excess free cash flow to repay debt, aiming to reduce its net leverage ratio to approximately 4x upon closing.

The transaction has been unanimously approved by Tegna's Board of Directors and is anticipated to close in the second half of 2026, pending regulatory and shareholder approvals.

This acquisition reflects ongoing consolidation trends in the U.S. broadcasting industry, influenced by regulatory changes under the Trump administration that favor fewer constraints on mergers. The Federal Communications Commission (FCC) has been seeking to refresh rules that cap station ownership at a combined reach of 39% of U.S. television households. An appeals court recently struck down the FCC's "Top Four" rule, which barred ownership of two top-rated stations in the same market.

The media industry is experiencing significant consolidation as companies adapt to shifting consumer habits, such as cord-cutting and the rise of streaming services. This trend is evident in other recent developments, including Sinclair's strategic review of its broadcast division, which encompasses 178 local television stations across 81 markets.

Following the announcement, Nexstar's stock price increased by 6.46%, reaching $219.71, while Tegna's stock price rose by 4.44% to $21.08. These movements reflect investor optimism regarding the strategic benefits of the acquisition.

Perry A. Sook, Nexstar's Chairman and CEO, stated, "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."

Howard Elias, Chairman of Tegna's Board of Directors, commented, "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 acquisition marks a significant milestone in the broadcasting industry, positioning Nexstar as a dominant player in local television. The deal's success will depend on regulatory approvals and the effective integration of the two companies.