Nexstar Media Group has agreed to buy WGN owner Tribune Media for about $4.1 billion, potentially ending Chicago-based ownership of Ch. 9 and creating uncertainty for the future of cable channel WGN America and radio station WGN 720 AM.
Tribune Media would give Texas-based Nexstar, which owns stations in mostly small and midsize TV markets, a broadcast presence in Chicago, New York and Los Angeles, raising its national profile and influence and making WGN-Ch. 9 a major acquisition.
The future of WGN America and WGN Radio may be more up in the air under Nexstar, which owns 174 TV stations across the U.S.
Perry Sook, chairman and CEO of Nexstar, said on a conference call Monday the company has “no plans to immediately divest” of WGN America but is open to selling it.
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| WGN 720 AM (50 Kw) Daytime 2 mV/m contour |
The deal stands to create a new king of local TV, unseating Sinclair Broadcast Group. Four months ago, Sinclair was forced to abandon its own takeover attempt for Tribune Media after the $3.9 billion transaction drew the ire of regulators. Nexstar had been interested in Tribune Media last year before Sinclair had agreed to buy it.
Nexstar has overlapping stations with Tribune Media in 15 markets and will have to divest of about $1 billion of assets in 13 of those markets to comply with Department of Justice and Federal Communications Commission ownership limits, the company said during a conference call Monday morning. Chicago is not among the 15 overlapping TV markets.
The company also said it would need to make some adjustments to its portfolio to comply with the FCC's national ownership cap, which prohibits a single entity from reaching more than 39 percent of TV households.
This marks the second major deal among broadcast station owners in 2018. In June, Gray Television agreed to buy Raycom Media for $3.65 billion.
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