The Federal Communications Commission Chair announced his endorsement of Nexstar Media Group’s proposed $6.2 billion purchase of Tegna, a deal that would create the largest regional television station operator in the United States.
Under the terms, Nexstar will acquire 64 of Tegna’s stations, bringing its total to 265 full‑power stations in 44 states and the District of Columbia and covering 132 of the country’s 210 television DMAs. The combined company would reach roughly 80% of U.S. households, a reach that far exceeds the FCC’s 39% national ownership cap.
The transaction is projected to generate $300 million in annual net synergies and to be more than 40% accretive to Nexstar’s standalone adjusted free cash flow in the first twelve months after closing. The deal is expected to close in the second half of 2026, pending regulatory approval and shareholder consent.
The FCC Chair’s endorsement is a significant regulatory signal, but the merger still faces scrutiny from the Department of Justice, which has issued a second request for information, and from several state attorneys general. Opposition has also come from a group of 40 Republican members of Congress and conservative media outlets such as Newsmax, who argue that the deal would reduce competition and local journalism diversity. The FCC’s ownership cap of 39% would need to be waived or revised for the transaction to proceed, a move that has been a central point of debate.
Nexstar’s CEO Perry Sook said the acquisition is a "major step forward in shaping Nexstar's future" and that "Operationally, our core business is performing well, with stable year‑over‑year distribution and non‑political advertising revenue and strong expense management." He added that "The initiatives being pursued by the Trump administration offer local broadcasters the opportunity to expand reach, level the playing field, and compete more effectively with the Big Tech and legacy Big Media companies that have unchecked reach and vast financial resources." Tegna’s CEO Mike Steib echoed the sentiment, noting that "Nexstar and TEGNA both share a rich heritage of commitment to journalistic excellence and technological advancements. Together, we will expand news coverage to serve more communities, across more screens, and ultimately secure the future of local news for generations to come."
Financially, Nexstar reported third‑quarter 2025 net revenue of $1.2 billion, a 12.3% decline from the prior year largely driven by a reduction in political advertising. The proposed synergies and accretion are expected to offset this decline and support the company’s long‑term growth trajectory, positioning it to better compete with streaming services and large media conglomerates.
The merger represents a strategic consolidation that could reshape the U.S. local television landscape, offering scale advantages, expanded reach, and enhanced political advertising capabilities, while also raising significant regulatory and competitive concerns that will need to be addressed before the deal can close.
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