Nexstar Said To Be Buying Tribune Media

Nexstar Media Group Inc. agreed to buy Tribune Media Co. for $4.1 billion, creating the largest owner of local-TV stations in the U.S., according to a person with knowledge with the matter.

According to The Chicago Tribune, Nexstar outbid private equity firm Apollo Global Management LLC with an all-cash offer that values Tribune at about $46.50 a share, said the person, who asked not to be identified because the purchase isn't yet public. An announcement could come as soon as Monday.

The deal would create a new king of local TV, unseating Sinclair Broadcast Group Inc. Four months ago, Sinclair was forced to abandon its own takeover attempt for Tribune after the $3.9 billion transaction drew the ire of regulators. Nexstar had been interested in Tribune last year before Sinclair had agreed to buy it.

Tribune is now set to fetch a higher price from Nexstar - and a 15 percent premium over its closing price of $40.26 at the end of last week.

Bulking up will give Nexstar more leverage as it negotiates retransmission fees from pay-TV providers. Broadcasting companies also are pairing up in the hopes that their size will help ward off a threat from Netflix Inc. and other streaming services.

Nexstar, based in Irving, Texas, has about 175 TV stations, including NBC, CBS, ABC and Fox affiliates, which reach roughly 40 percent of U.S. households. Chicago-based Tribune owns or operates more than 40 stations, as well as the national network WGN America and WGN 720 AM in Chicago.