Two major players in the local television business are coming together. Nexstar Media Group will acquire Tegna for $6.2 billion, including debt and estimated transaction fees and expenses, the companies announced Tuesday.
Under the terms of the agreement, the former will purchase the last outstanding shares at $22 per share—a 31% premium to the company’s 30-day average share price as of Aug. 8, the last share price before media reports of the potential deal.
The transaction is expected to close by the second half of 2026, subject to TEGNA shareholder and regulatory approvals.
Following the closing, Nexstar, along with its partners, will have 265 television stations in 44 states and the District of Columbia, representing 80% of US television households. It will add BIG-4 affiliate stations in markets including Phoenix, Arizona; Atlanta, Georgia; Toledo, Ohio; and Portland, Maine. The combined company will also have stations in nine of the top 10 markets and 41 of the top 50.
Together, Nexstar and Tegna will have combined net revenue of $8.1 billion and adjusted EBITDA before stock compensation of $2.56 billion, excluding synergies. Nexstar expects to generate approximately $300 million in synergies from the transaction.
The companies said the deal would leave Nexstar “well-positioned to compete in today’s fragmented and rapidly changing marketplace” and ensure “the long-term vitality of local news and programming from trusted local sources and preserve the diversity of local voice and opinion.”
The move comes as the National Association of Broadcasters , conservative groups , and members of Congress have all lobbied the Federal Communications Commission, asking the agency to modernize broadcast ownership rules that currently limit a single entity’s ability to own TV stations that collectively reach more than 39% of US TV households.
The agency has opened the issue for public comment. The US Eighth Circuit Court of Appeals also recently ruled that a single entity’s control of multiple Big Four branch networks in a single market is a limitation.
During a panel discussion hosted by the Milken Institute in May, FCC Chairman Brendan Karl signaled support for TV station ownership reform as one way to empower local broadcasters, calling current rules “arcane” and “artificial.” Wager experts have previously said that local TV station owners face several hurdles to pursuing mergers and acquisitions, as well as regulatory approval alone, including declining station and rebroadcast values related to cord-cutting and higher production costs and debt.
“The initiatives being implemented by the Trump administration offer local broadcasters the opportunity to expand their reach, level the playing field, and compete more effectively with big tech and legacy media companies that have not tested their reach and extensive financial resources,” Nexstar Chairman and CEO Perry Suok said in a statement. “We believe Tegna is the best fit for Nexstar to pursue this opportunity.”
Sook also recognized the company’s achievements in mergers and acquisitions since 2011, including the 2019 acquisition of Tribune Media.
“The playbook we followed to make these transactions successful—enhancing and growing local content, executing on identified synergies, and quickly revitalizing our balance sheet with free cash flow upon closing—are the same capabilities and strategies we will leverage in connection with this transaction,” Sook added. “With committed financing and a plan to realize significant synergies, we believe the combined entity will be poised for growth, de-leveraging, and enhancing shareholder value.”
Tegna CEO Mike Steeb said the deal will allow Tegna stations to “continue to do what we do best: creating outstanding and impactful local content, as well as delivering indispensable digital products to the communities we serve across the country.”
“Both Nexstar and Tegna share a rich commitment to journalistic excellence and technological advancements,” added Steib. “Together, we will expand news coverage to serve more communities, across more screens, and ultimately secure the future of local news for generations to come.”
More to come…
