Nexstar Doubles Down On Local News With $6.2 Billion TEGNA Buyout
Synopsis
Under the terms, Nexstar will pay $22 per TEGNA share, marking a 31% premium compared to TEGNA’s average share price over the 30-day period ending Aug. 8, 2025.
Nexstar Media Group Inc. (NXST) announced on Tuesday that it is set to acquire TEGNA Inc. (TGNA) in a $6.2 billion all-cash agreement, a move that would expand its footprint in the U.S. television market.
Under the terms, Nexstar will pay $22 per TEGNA share, marking a 31% premium compared to TEGNA’s average share price over the 30-day period ending Aug. 8, 2025.
Nexstar Media stock traded over 2% higher in Tuesday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘neutral’ territory amid ‘normal’ message volume levels.
The deal, which includes TEGNA’s debt and estimated transaction costs, has been unanimously approved by TEGNA’s board of directors. TEGNA operates in 51 DMAs (designated market areas), 35 of which overlap with Nexstar's coverage, allowing for potential operational combinations and improved market efficiencies.
The deal is expected to boost Nexstar’s presence in political advertising markets like Phoenix, Atlanta, Toledo, and Portland, areas key to upcoming election cycles. The combined company will own or partner with 265 full-power stations across 44 states and Washington, D.C., extending its reach to 80% of American households. It will also operate in 82 of the top 100 DMAs, including nine of the top 10.
“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,” said Nexstar’s Chairman and CEO, Perry A. Sook.
The company anticipates the deal will boost its free cash flow by more than 40% in the first year post-close, even after accounting for taxes and financing costs. The firm expects to close the transaction by the second half of 2026.
Nexstar stock has gained over 30% in 2025 and over 23% in the last 12 months.
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