Bigger Big: 180 Stations For Nexstar

Nexstar Media Group, the largest local broadcast group in the U.S., announced Tuesday, that it will acquire Tegna Inc., the fourth-largest local broadcaster, in an all-cash deal valued at $6.2 billion, including Tegna’s net debt and transaction fees. 

The deal, priced at $22 per share, represents a 31% premium over Tegna’s 30-day average stock price as of August 8, 2025. If approved by regulators and shareholders, the transaction is expected to close in the second half of 2026.

Key Details of the Acquisition:

Scale and Reach: The merger will create the nation’s largest local TV operator, combining Nexstar’s 200+ owned or partner stations across 116 markets with Tegna’s 64 stations in 51 markets. The combined entity will control 265 full-power stations across 44 states and Washington, D.C., reaching nearly 80% of U.S. TV households and covering 132 of the 210 designated market areas (DMAs), including nine of the top 10 and 82 of the top 100 markets.

Perry Snook

Financial Impact: The combined company is projected to generate $8.1 billion in net revenue and $2.56 billion in adjusted EBITDA (excluding synergies) based on the last eight quarters annualized as of June 30, 2025. Nexstar expects $300 million in annual synergies from revenue and cost efficiencies, making the deal over 40% accretive to its free cash flow in the first year post-closing.

Strategic Rationale: Nexstar’s CEO, Perry Sook, highlighted the deal as a response to Trump administration initiatives to deregulate broadcast ownership, allowing local broadcasters to compete with Big Tech and legacy media. The acquisition strengthens Nexstar’s presence in key markets like Atlanta, Phoenix, Seattle, and Minneapolis, enhancing its advertising and digital offerings.

Regulatory Context: The deal faces scrutiny due to the FCC’s national TV ownership cap, which limits a single entity to reaching 39% of U.S. TV households. FCC Chair Brendan Carr has signaled openness to revising this cap, which Nexstar’s post-merger reach (80%) would exceed. The deal’s approval will test the Trump-era FCC’s stance on consolidation.

Broader Implications:  The acquisition reflects a broader trend of consolidation in the local TV sector, driven by cord-cutting, competition from streaming platforms, and the need to compete with tech giants. Sinclair Broadcast Group, the third-largest broadcaster, reportedly proposed a competing $25–$30 per share offer for Tegna, which could spark a bidding war.