Nexstar Media Group closed its $6.2 billion cash acquisition of TEGNA Inc. on March 19, 2026, creating the largest regional broadcast station operator in the United States. The combined company will own 265 television stations in 44 states and will reach approximately 80% of U.S. television households, a figure that far exceeds the 39% national ownership cap that the FCC normally enforces.
The transaction received final approval from the Federal Communications Commission and the Department of Justice, and the FCC granted a waiver of the 39% national ownership cap. As part of the approval process, Nexstar agreed to divest six stations in Denver, Indianapolis, New Haven, Portsmouth, Slidell, and Rogers to address concentration concerns.
Financially, the deal builds on recent earnings performance. TEGNA reported Q4 2025 earnings per share of $0.50 versus an estimate of $0.45, a beat of $0.05 or 11%. Revenue for the quarter was $706.11 million, up $4.82 million from the $701.29 million estimate. Nexstar’s Q4 2025 GAAP earnings per share were –$5.63 versus an estimate of –$9.39, a beat of $3.76, while revenue of $1.29 billion exceeded the $1.26 billion estimate by $30 million. The earnings beats were driven by disciplined cost management and a favorable revenue mix that included higher‑margin digital and local‑news segments.
Strategically, the merger is designed to give the combined entity a scale that can compete with Big Tech and legacy media companies. Nexstar CEO Perry Sook said, "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." He added, "By bringing these two outstanding companies together, Nexstar will be a stronger, more dynamic enterprise — better positioned to deliver exceptional journalism and local programming with enhanced assets, capabilities, and talent." The deal is expected to generate annual net synergies of roughly $300 million from revenue enhancements and cost reductions.
The market reacted strongly to the closing. Tegna shares surged 9.3% in aftermarket trade, driven by the $22 per share cash offer that represented a 31% premium over the 30‑day average price. Nexstar shares rose 3%, reflecting investor confidence in the strategic advantage of scale and the successful navigation of regulatory hurdles. Eight states and DirecTV filed lawsuits to block the merger on antitrust grounds, citing concerns about higher consumer prices, job losses, and reduced diversity in local news.
The acquisition was financed through new credit facilities, including senior first‑lien bridge, term loan A, and term loan B facilities. Nexstar plans to use excess cash to reduce leverage by 2028, a goal that is challenging in a high‑interest‑rate environment but is supported by the projected synergies and the expanded reach that will improve advertising revenue streams. The deal also positions the company to invest in digital platforms and local‑news technology, which are critical for sustaining long‑term growth in a fragmented media landscape.
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