Nexstar Media Group will operate TEGNA as a subsidiary while multiple lawsuits challenging their $6.2 billion merger move through the courts, according to sources and recent regulatory disclosures.
The temporary structure gives Nexstar flexibility to later spin off or separate TEGNA if judges appear likely to side with plaintiffs seeking to block or unwind the deal. Sources said the approach is designed to limit legal and financial risk as the cases develop.
Nexstar finalized the acquisition last week within minutes of securing key approvals from the U.S. Department of Justice and the Federal Communications Commission, both of which had been reviewing the transaction. The deal was completed through a Nexstar subsidiary, Teton Merger Sub, which purchased TEGNA shares at $22 each—a premium over the company’s prior trading price.
Separately, Newsmax joined broadband and technology firms in filing a petition in the D.C. Circuit Court of Appeals, seeking to block the FCC Media Bureau’s waiver that allowed the deal to close. The plaintiffs are requesting an injunction that could halt or potentially reverse the transaction.
The outcome of these cases could determine whether Nexstar retains full control of TEGNA or is forced to restructure or divest parts of the newly combined business.