In a significant development within the media industry, shares of Tegna experienced a dramatic increase in value during extended trading hours, following reports indicating that Nexstar Media Group is on the verge of finalizing an agreement to acquire the broadcasting company. This substantial transaction, estimated at around $8 billion inclusive of debt, represents a pivotal moment that will undoubtedly scrutinize the Federal Communications Commission's ongoing efforts to deregulate the media landscape. The news emerges as Tegna grapples with a projected decrease in its third-quarter revenue, adding another layer of complexity to its current operational climate.
According to sources close to the matter, as reported by The Wall Street Journal, discussions between Nexstar Media Group and Tegna have reached an advanced stage. Should this deal materialize, it would mark a major consolidation event in the television broadcasting sector, potentially reshaping the competitive dynamics and regulatory oversight. The proposed acquisition's implications extend beyond the financial realm, serving as a critical litmus test for the FCC's commitment to easing restrictions within the media industry. Both companies have remained publicly silent regarding these reports, declining to comment on the ongoing negotiations.
The current market capitalization for Tegna stands at $2.46 billion, with a trading volume reflecting heightened investor interest. Meanwhile, Nexstar holds a market cap of $5.63 billion. The reported acquisition talks come at a challenging time for Tegna, which recently disclosed an expected revenue reduction of 18% to 20% year-over-year for the third quarter of 2025. This follows a 5% revenue dip to $675 million in the second quarter, although distribution revenue remained stable due to rate increases offsetting subscriber losses.
Following the news, Tegna's stock, which closed at $15.31 with a 1.80% gain on Friday, leaped by 30.57% to $19.99 in after-hours trading. Conversely, Nexstar Media Group's stock, after closing up 1.23% at $186.80, saw a slight dip of 0.43% to $186.00 after the trading day. These movements highlight the market's immediate reaction to the potential merger, underscoring the significant financial stakes involved for both entities and their shareholders.
The reported nearing of an acquisition agreement between Nexstar Media Group and Tegna signals a transformative phase for both companies and the broader broadcasting industry. This high-stakes deal, with its considerable financial valuation and regulatory implications, is poised to redefine market structures and test the boundaries of media consolidation in an evolving landscape.