Nexstar Media Group and Tegna have announced a definitive agreement to merge, creating one of the largest players in local television broadcasting in the United States. Under the terms of the deal, Nexstar will acquire all outstanding Tegna shares for 22.00 per share in cash, valuing the transaction at about 6.2 billion including debt. Tegna’s board has approved the merger, and Tegna’s debt will be refinanced or settled at the closing of the deal. The transaction comes as Sinclair Broadcast Group had also been examining a possible deal for Tegna, which operates 64 local TV stations nationwide.
Nexstar, which already owns or partners on roughly 299 TV stations, has secured financing from a consortium of Wall Street investment banks to support the purchase. The merger is contingent on regulatory approvals and is often viewed as a test case for whether the FCC will loosen local TV ownership rules as it weighs the Nexstar-Tegna deal. If completed, the combined company would operate 265 local TV stations across 44 states and the District of Columbia, and reach 132 of the country’s 210 television DMAs (designated market areas).
The proposed tie-up would place the merged entity in a large swath of the U.S. market, with a footprint in nine of the top ten DMAs, 41 of the top 50 DMAs, 62 of the top 75 DMAs and 82 of the top 100 DMAs, covering about 80 percent of U.S. television households. Nexstar chairman and CEO Perry A. Sook framed the deal as a strategic move aligned with regulatory shifts under the current administration, suggesting that deregulation could enable local broadcasters to expand reach, level the playing field, and compete more effectively with larger tech and legacy media players. He noted that Tegna represents the best option for advancing these opportunities.
The move comes amid a broader push for deregulation priorities and ongoing consolidation in the sector, with several major groups watching the regulatory landscape closely. The purchase price represents roughly a 31 percent premium to Tegna’s 30-day average stock price as of August 8, and Tegna shares had been rising on news of the merger talks.
In addition to expanding Nexstar’s reach in key markets such as Atlanta, Phoenix, Seattle, and Minneapolis, the merger is expected to yield about $300 million in annual cost savings through revenue synergies and expense reductions. The deal remains subject to approvals, including consent from Tegna shareholders, and is expected to close by mid-2026.
Mike Steib, Tegna’s CEO, welcomed the partnership, saying the merger would allow Tegna’s stations to continue delivering strong local content while expanding digital products and news coverage across more communities and screens, ultimately supporting the long-term future of local news.
What this means for viewers and local news
– The combination would create a broader platform for local news coverage and digital offerings, potentially accelerating investments in multimedia reporting and online products.
– Regulatory review will be a major factor in the timeline, with possible implications for competition and market concentration in local TV.
– The deal signals continued industry consolidation as broadcasters pursue scale advantages in a changing media ecosystem.
Commentary and outlook
– The merger underscores a push toward greater scale in the local TV sector, with proponents arguing that larger platforms can sustain high-quality local journalism and innovate digitally.
– Critics may voice concerns about market concentration and its impact on independent reporting or newsroom resources, so regulatory scrutiny will be closely watched.
– If cleared, the deal could set a precedent for future transactions in the space and shape the competitive dynamics of local broadcasting over the next few years.
Summary
A landmark merger between Nexstar and Tegna would reshape the local television landscape, delivering a large-scale platform with extensive reach and meaningful cost savings, while facing regulatory review that could influence the pace and terms of consolidation in the industry. The deal aims to expand local news coverage and digital services, with a target close in mid-2026, subject to approvals from Tegna’s shareholders and regulators.