Nexstar's rumored advanced negotiations spark surge in Tegna's stock value.
Nexstar Media Group and Tegna Inc. in Advanced Talks for Potential Merger
In a significant development for the media industry, Nexstar Media Group and Tegna Inc. are reportedly in advanced talks that could lead to a merger. If the deal goes through, Nexstar, which currently owns over 200 stations across 116 markets, would potentially add Tegna's 64 stations in 51 markets to its portfolio.
The momentum for this potential consolidation has been building since a recent court decision that eliminated the FCC's "Top Four" ownership rule. This decision, led by FCC Chairman Brendan Carr, has created a more permissive regulatory environment for local station group mergers and acquisitions.
Tegna's CEO, Mike Steib, hinted at the company's openness to mergers and acquisitions during a recent earnings call. He emphasised that they are open to buying or selling opportunities, highlighting the industry's push towards consolidation and the strategic advantages Nexstar might gain. This openness has been reflected in Tegna's stock, which surged about 30% to a new all-time high following the merger rumours.
As of the latest update, Tegna is valued at approximately $2.42 billion, while Nexstar is valued at around $5.56 billion, according to recent market data. However, no official deal structure or final price has been disclosed yet. Reports suggest that the acquisition could be completed soon, given the advanced stage of negotiations.
This potential merger comes at an interesting time for both companies. For Tegna, it could provide a much-needed boost in resources and market reach. For Nexstar, it could solidify its position as a major player in the media industry.
Stay tuned for more updates as this story develops.
[1] Wall Street Journal, 2022 [2] Variety, 2022 [3] Deadline, 2022
- Such a merger, if successful, could lead to significant shifts in the finance landscape of the media industry, as Nexstar would potentially acquire Tegna's businesses, broadening its overall influence.
- Investors are closely watching the progress of the Nexstar-Tegna merger talks, as the deal could present opportunities for gain within the business sector, given the potential synergies and competitive advantages that this consolidation could bring.
