Tegna Inc (NYSE:TGNA) shares surged nearly 30% Friday after The Wall Street Journal reported that Nexstar Media Group Inc (NASDAQ:NXST) is in advanced talks to acquire the regional broadcaster. The potential deal, which could be finalized soon barring late-stage complications, would significantly reshape the local television landscape in the U.S.
The Journal, citing people familiar with the matter, said the terms are still undisclosed, but Tegna has a current market capitalization of around $2.5 billion, compared to Nexstar’s $5.6 billion. The move signals Nexstar’s ambitions to further expand its footprint in the broadcast television space.
If finalized, the transaction would merge Tegna’s portfolio of 64 stations across 51 markets with Nexstar’s more than 200 owned or partner stations in 116 markets. Nexstar’s national assets, including the CW Network and NewsNation, would be bolstered by the addition of Tegna’s regional reach.
This marks Tegna’s second major acquisition attempt in recent years. In 2022, it agreed to an $8.6 billion transaction, including debt, with Standard General, but that deal collapsed after extended regulatory scrutiny and opposition.
While Tegna’s stock soared on the Journal report, Nexstar shares were unchanged, suggesting investors are weighing a potential premium cost for Tegna and regulatory challenges that may arise with another high-profile acquisition.
Source :
https://www.investing.com/news/stock-market-news/wsj-reports-tegna-and-nexstar-near-deal-tegna-shares-jump-4181534
