Nexstar Media Group is set to acquire its broadcasting rival Tegna for a significant sum of $6.2 billion, representing a major development in the U.S. television and local news sectors. If regulatory approval is granted, Nexstar plans to purchase Tegna at a rate of $22 in cash for each of Tegna's outstanding shares. This acquisition is expected to be favorably viewed under the Trump administration, known for its push towards loosening regulations in the broadcast industry.
The announcement was made by Nexstar CEO Perry Sook, who highlighted the opportunities that the Trump administration's initiatives present for local broadcasters. Sook emphasized that this acquisition would enable Nexstar to broaden its reach and enhance its competitive stance against large technology and media firms that currently dominate the industry due to their extensive resources and influence.
As it stands, Nexstar operates over 200 owned and partner stations across 116 markets in the United States, and manages networks like The CW and NewsNation. Tegna, on the other hand, owns 64 news stations across 51 markets. The merger would potentially lead to the consolidation of resources, which often involves eliminating redundant positions and functions, thus creating operational efficiencies.
Paul Hardart, the director of the entertainment, media and technology program at New York University’s Stern School of Business, notes that while Nexstar stands to benefit from reduced operational costs, local communities may suffer from a homogenization of content as a result of the merger. Industry experts have observed that previous consolidations have led to similar outcomes.
Nexstar, founded in 1996, has grown rapidly through acquisitions over the past two decades, establishing itself as the largest operator of local TV stations in the U.S. following its purchase of Tribune Media in 2019. Danilo Yanich, a public policy professor at the University of Delaware, asserts that Nexstar is currently the biggest duplicator of local news content, having analyzed how frequently local news broadcasts utilize identical language. Furthermore, this consolidation would likely lead to more content duplication as Nexstar seeks to achieve economies of scale.
During the announcement, Nexstar maintained that the proposed purchase of Tegna would expand local and national advertising options for advertisers. The timing of this acquisition coincides with broader regulatory changes in the industry. Brendan Carr, the FCC chairman appointed by Trump, has advocated for deregulating many broadcasting rules. Recently, the FCC announced plans to repeal 98 broadcast regulations deemed outdated and unnecessary, some of which have been in place for nearly 50 years.
In addition, the U.S. Court of Appeals for the Eighth Circuit recently invalidated the FCC’s "top four" rule, which restricted ownership of multiple top-ranked stations in a single market. This ruling could pave the way for further mergers in the broadcasting sector, something both Nexstar and Tegna's executives have welcomed during their earnings calls in early August.
Both companies, besides their core television operations, also provide digital news, mobile applications, and streaming services, which have become increasingly vital as consumer preferences shift towards different modes of content consumption. Broadcast television is facing significant challenges due to the rise of "cord-cutting" habits among consumers who are abandoning traditional cable or satellite subscriptions in favor of internet-based content.
Experts like Hardart have noted the pressing challenge presented by "cord nevers," referring to individuals who have grown up without engaging with traditional television. This demographic is increasingly turning to social media and other digital platforms for their entertainment and news needs. Nevertheless, some experts argue that the notion that technology companies can replicate the functions of local journalism is misguided, highlighting the unique content and outreach that local broadcasters provide.
The acquisition of Tegna by Nexstar is anticipated to be finalized by the second half of 2026, contingent upon regulatory approval and Tegna shareholder consent. As the media landscape continues to evolve, further consolidations within the industry may become more commonplace.
