Here are some some specifics of the big deal which still needs FCC approval.
Transaction Details
TEGNA purchase price of $22.00 per share, reflects a 31% premium to TEGNA’s unaffected 30-day average stock price ending August 8, 2025.
Transaction has been unanimously approved by TEGNA’s Board of Directors.
TEGNA debt will be refinanced and/or assumed at close.
Committed financing in place from BofA Securities, P. Morgan Chase N.A., and Goldman Sachs & Co. LLC to finance the transaction.
Transaction Highlights
Combines two best-in-class television broadcast companies which share an unwavering commitment to localism, innovation, and superior, trustworthy programming.
Increases operational and geographic diversity and scale. Upon closing, Nexstar, together with its partners, will have 265 full-power television stations in 44 states and the District of Columbia and 132 of the country’s 210 television DMAs. The combined company will have stations in 9 of the top 10 DMAs, 41 of the top 50 DMAs, 62 of the top 75 DMAs and 82 of the top 100 DMAs, covering, in total, 80% of U.S. television households.
Enhances presence in local DMAs. Nexstar’s station footprint overlaps with TEGNA in 35 of TEGNA’s 51 DMAs, providing improved synergy potential in these markets.
Extends footprint to additional contested election DMAs. The addition of strong Big-4 affiliates in key contested election DMAs, such as Phoenix, AZ, Atlanta, GA, Toledo, OH, and Portland, ME, will enhance the political advertising outlook for Nexstar in even-numbered years.
**Tegna is spinning this as 'combined,' but that looks like cole for the duopolies which, in most cases, consolidated stations. Portland is a good example. Who gets stronger, Nexstar's KOIN or Tegna's KGW. KGW has long been the stronger channel, but the buying stations usually wins.
Wonder what the Grifter-In-Chief will demand for regulatory approval?
ReplyDeleteGood question. Some possibilites that come to mind include:
DeleteFree advertising for whatever causes he might want promoted.
More airtime for pro MAGA and pro Trump voices on NewsNation and the local stations.
A commitment to not air "fake news" (as defined by Trump).
An end to DEI policies across Nexstar and Tegna.
A "donation" to his Presidental Library.
Only time will tell what, if anything, he'll want. But I have to imagine this merger isn't too high on his radar right now.
I reckon the “facing race” team and stories will be the first to go.
DeleteNexstar may need to sell off some stations to pay down debt, and KING-KONG might be in the crosshairs. With a duopoly likely in Portland with KOIN and KGW, KING would be a bring a sizeable profit, if another group bought it (and maybe KREM-KSKN in Spokane as a double package deal). Existing duops may not be as attractive to Nexstar. Conversely, they own KTLA in Los Angeles and will have a duop in Sacramento, leading right up the coast to a PDX duop and Seattle. Just musing. It would give the company a new beachhead in the lucrative west. How about something even crazier. SInclair, who reportedly was also flirting to buy Tegna, (which probably prompted Nexstar to move faster) could buy KING-KONG from Tegna and create a triopoly in the market. Not sure SInclair could handle that kind of debt, however. Anyway, all of this is down the line, but nothing would surprise me.
DeleteInteresting ideas all around. This merger opens up so many possibilities, both good and bad, to mull over.
DeleteI agree with Chris on the "Facing Race" team and stories going away to help get the merger over the finish line. It would be a disappointment, as the series has shined a light on the important issues of race and racism, but their efforts aren't exactly Trump's kind of tea.
Nexstar already in bed with him because of the corporate leadership at right leaning News Nation with multiple sycophants, including Sean Compton, Michael Corn and Bill Shine in charge. Might be getting something from Tegna, though, to pitch in some.
ReplyDeleteYour assessment of Nexstar is on the money, Wayne. They have been playing a very organized, long game with elected officials, especially those that worship at the altar of deregulation, for quite some and their ship has come in. They are a smarter, savvier (grading on the curve), slightly less conservative version of Sinclair.
ReplyDeleteI saw Joyce Taylor address this on the five pm news. She said “nothing would change” but I suspect that is just a script the higher ups are providing all the stations.
ReplyDeleteI share your suspicion, though there may be a bit more truth to it in this market because Nexstar doesn't own any other stations here that KING and KONG would be consolidating with. Some changes will inevitably occur, but we'll have to wait and see what they are and when they happen.
DeleteWould agree with IDC. Portland is a different story however with Nexstar currently owning KOIN. So we will of course see
DeleteWhen it comes to Portland, I suspect Nexstar will keep its current duopoly, KOIN and KRCW, and sell KGW. KGW could fetch a pretty penny on the open market, and there are at least two entities that don't have a presence in Portland right now that might potentially be interested (Hearst and Scripps).
DeleteGood point there, and, yes, KGW is a leader in the market, so a spinoff is certainly possible, but there is always a chance for a triopoly down there.
DeleteI agree that there is a chance for a triopoly in Portland. There is a graphic going around from Nexstar's primary station in Charlotte, WJZY, which implies that they will control Tegna's station down there, WCNC, post merger. Should that happen, a triopoly will have been formed there, as Nexstar also owns WMYT. If Nexstar thinks a triopoly is possible in Charlotte, then it is entirely in the realm of possibility that they think one is possible in Portland too. I'd rather that triopolies not be formed in these markets to try and preserve choices for viewers and jobs for journalists, but it can't be ruled out.
DeleteStandard post-sale comment. Business as Usual. It has no value, it is just offered to keep staffers from getting too restless. It will be harder to leave for another station when Nexstar owns so many and Gray is buying. Sinclair is an unknown quantity for now.
ReplyDeleteThings could get even messier if this happens (I’m posting this from FTVLive): “Word is that Nexstar is going to be making a play for the Cox Media Group. FTVLive also has heard that Gray is interested in Cox, but Nexstar seems to be moving fast to try and get a deal done. If Nexstar ends up with Cox, you can expect that some stations will be sold or traded with Gray Media. We expect the same with the Tegna stations as Nexstar will try and recoup some of the cash used to make the deals. Stay tuned.....”
ReplyDeleteThat will certainly complicate matters in this market if this comes to fruition.
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