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Nexstar Media Group, the biggest TV station possession group within the U.S., has agreed to accumulate Tegna Inc.’s 64 broadcast retailers, the businesses introduced Tuesday.
The deal would be the first main take a look at of the TV station possession guidelines underneath President Trump’s Federal Communications Fee. FCC Chairman Brendan Carr has referred to as the present guidelines arcane and has indicated he’s open to vary.
The Irving, TX-based Nexstar, which owns Los Angeles outlet KTLA, pays $22 a share for Tegna in a deal valued at $6.2 billion. The supply is 30% over the 30-day common of Tegna’s closing inventory worth on Aug. 8.
Nexstar has greater than 200 stations in 116 markets, though a few of are owned by means of partnerships. The corporate additionally owns NewsNation, the cable information channel launched in 2020, and a majority stake within the CW Community.
Tegna presently owns TV stations in 51 markets, together with KFMB in San Diego and KXTV in Sacramento.
The mixed firms would have complete 265 stations reaching 80% within the U.S.
Broadcasters have requested that the FCC elevate the present possession cap that limits house owners to protection of 39% of the nation to allow them to consolidate and obtain the size wanted to compete with tech companies that don’t face the identical kind of regulatory restrictions.
The possession cap was final revised upward within the pre-streaming period of 2004. The FCC guidelines additionally restrict the variety of stations an proprietor can have in a single market.
“The initiatives being pursued by the Trump administration supply native broadcasters the chance to develop attain, stage the enjoying subject, and compete extra successfully with Large Tech and legacy Large Media firms which have unchecked attain and huge monetary sources,” Nexstar Chairman Perry Sook stated in an announcement.
The Wall Road Journal reported Monday that Sinclair Broadcasting, a Baltimore-based station possession group, has additionally made an unsolicited bid to merge its stations with Tegna.
Sook performed down the Sinclair proposal throughout a Tuesday look on CNBC. He stated he was knowledgeable of the bid Monday and stated the Tegna board is continuing with Nexstar.
Sinclair is a much smaller firm — valued a $1 billion — than the $6 billion Nexstar and carries much more debt.
“I believe the (Tegna) board thought-about all of that of their deliberations final evening and voted unanimously to help our transaction,” Sook stated.
TV station house owners are in search of aid as they’ve been shedding viewers over the past decade resulting from shoppers migrating to streaming platforms.
Whereas TV scores have slumped, community TV associates draw huge audiences for NFL video games that allow them to command excessive costs for commercials. Native stations additionally prosper throughout presidential and mid-term election years once they see an inflow of political promoting income.
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