A deal seeing Nexstar Media Group shopping for Tegna may very well be finalized quickly.
The deal would imply that Nexstar, which owns and operates greater than 200 stations throughout 116 markets, may choose up Tegna’s 64 stations in 51 markets.
The corporate has a market valuation of about $2.42 billion, in contrast with Nexstar’s $5.56 billion, based on LSEG information.
Reuters mentioned shares of Tegna surged 30% in prolonged buying and selling following the report, whereas Nexstar’s shares have been largely flat.
Throughout Tegna’s August 8 earnings name, CEO Mike Steib mentioned {that a} latest courtroom choice eliminating the Federal Communications Fee’s Prime 4 rule, which prohibited possession of two top-rated stations in the identical market and a extra permissive stance below Chairman Brendan Carr, may make it simpler for native station group mergers and acquisitions.
“Our business is up towards huge tech rivals who’ve completely no encumbrances in how they compete throughout the nation and in our markets. Secondly, we consider that when the if have been to create a major revenue pool for the printed business, and we’ve each expectation that we are going to take part. We’ve instructed you that we’re both a purchaser or vendor relying upon how the alternatives current themselves,” Steib mentioned within the firm’s earnings name. “And also you’ve already heard in the previous few weeks from a few of our friends within the business about swaps, that are nice alternatives to be each the customer and the vendor for events. We consider that it’s an awesome alternative, however we even have a robust steadiness sheet and an awesome set of belongings, and we’re going to be disciplined in how we method this. And so we’re persevering with to take that method. We’re excited in regards to the potentialities. And the crew is doing their work.”
