TV broadcaster Nexstar in advanced talks to acquire rival Tegna, source says

By Milana Vinn

(Reuters) -Television broadcaster Nexstar Media Group is in advanced talks to acquire rival Tegna, a person familiar with the matter told Reuters on Friday.

Shares of Tegna surged 30% in extended trading following the report, while Nexstar’s shares were largely flat.

A deal could be finalized soon, provided talks avoid last-minute obstacles, the source said, who asked not to be named because the discussions are confidential.

A potential deal between the two companies would mark a significant step in the ongoing consolidation of the U.S. television industry, as broadcasters adapt to shifting consumer habits driven by cord-cutting and the rapid expansion of streaming, amid expectations of looser regulations under U.S. President Donald Trump’s administration.

During Tegna’s August 8 earnings call, CEO Mike Steib cited a recent decision by the Eighth U.S. Circuit Court of Appeals striking down the Federal Communications Commission’s (FCC) “Top Four” rule, which prohibited ownership of two top-rated stations in the same market.

Steib said the ruling, along with a more permissive FCC stance under Chairman Brendan Carr, could soon ease ownership limits, allowing companies like Tegna and its rivals more room to expand through mergers and acquisitions.

“We believe deregulation is coming and will create significant opportunities. We are open to being a buyer or seller, depending on the opportunities, and are disciplined in our approach,” he said.

The Wall Street Journal first reported the news. Both Nexstar and Tegna declined to comment on the report.

Tegna has been subject to takeover interest in the past. In 2022, it agreed to be taken private by Standard General in a deal valued at $8.6 billion, including debt, but later terminated the merger agreement following regulatory scrutiny.

Nexstar owns or partners with more than 200 stations across 116 markets. It also operates prominent media properties such as The CW and NewsNation, and has recently ramped up its focus on sports content.

Tegna controls 64 stations and runs networks including True Crime Network. The company has a market valuation of about $2.42 billion, compared with Nexstar’s $5.56 billion, according to LSEG data.

(Reporting by Milana Vinn in New York and Arsheeya Bajwa in Bengaluru; Additonal reporting by Mrinmay Dey; Editing by Tasim Zahid)