TV broadcast company Nexstar is in advanced talks to acquire rival Tegna, according to a report from Reuters. The move would be the latest in the ongoing consolidation of the local news industry.
Major TV deal
The report says a deal could be finalized soon, barring any last-minute obstacles. Nexstar owns or is partnered with more than 200 TV stations across 116 different U.S. markets.
Tegna owns 64 different stations across 51 different markets.
It’s unclear how a change in ownership would impact Tegna employees. But shares of Tegna jumped nearly 30% following the report.
It would merge two of the top three revenue-generators in the industry.
Earlier this year, Tegna scrapped an $8.6 billion merger with Standard General over regulatory issues.
Clearing the deal
This deal between Tegna and Nexstar is now possible due to loosened regulations under the Trump administration and court rulings loosening requirements of media conglomerates. Just a few weeks ago, a federal court struck down the FCC’s prohibition on common ownership of two top four TV stations in a single market.
For more than twenty years, TV broadcasters could own up to two TV stations in the same market but could not own two of the top four rated stations without special approval.
Tegna CEO Mike Steib cited that recent change during the company’s earnings call this week.
“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,” Steib said, according to Reuters.
There are several major markets where Nexstar and Tegna both operate stations, including Dallas, Houston, Washington D.C. and St. Louis.
