Nexstar Media Group, the largest TV station ownership group in the U.S., has agreed to acquire Tegna Inc.’s 64 broadcast outlets, the companies announced Tuesday.
The deal will be the first major test of the TV station ownership rules under President Trump’s Federal Communications Commission. FCC Chairman Brendan Carr has called the current rules arcane and has indicated he’s open to change.
The Irving, TX-based Nexstar, which owns Los Angeles outlet KTLA, will pay $22 a share for Tegna in a deal valued at $6.2 billion. The offer is 30% over the 30-day average of Tegna’s closing stock price on Aug. 8.
Nexstar has more than 200 stations in 116 markets, although some of are owned through partnerships. The company also owns NewsNation, the cable news channel launched in 2020, and a majority stake in the CW Network.
Tegna currently owns TV stations in 51 markets, including KFMB in San Diego and KXTV in Sacramento.
The combined companies would have total 265 stations reaching 80% in the U.S.
Broadcasters have asked that the FCC lift the current ownership cap that limits owners to coverage of 39% of the country so they can consolidate and achieve the scale needed to compete with tech firms that don’t face the same type of regulatory restrictions.
The ownership cap was last revised upward in the pre-streaming era of 2004. The FCC rules also limit the number of stations an owner can have in a single market.
“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 Big Tech and legacy Big Media companies that have unchecked reach and vast financial resources,” Nexstar Chairman Perry Sook said in a statement.
The Wall Street Journal reported Monday that Sinclair Broadcasting, a Baltimore-based station ownership group, has also made an unsolicited bid to merge its stations with Tegna.
Sook played down the Sinclair proposal during a Tuesday appearance on CNBC. He said he was informed of the bid Monday and said the Tegna board is proceeding with Nexstar.
Sinclair is a far smaller company — valued a $1 billion — than the $6 billion Nexstar and carries far more debt.
“I think the (Tegna) board considered all of that in their deliberations last night and voted unanimously to support our transaction,” Sook said.
TV station owners are looking for relief as they have been losing audience over the last decade due to consumers migrating to streaming platforms.
While TV ratings have slumped, network TV affiliates draw massive audiences for NFL games that enable them to command high prices for commercials. Local stations also prosper during presidential and mid-term election years when they see an influx of political advertising revenue.
