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Nexstar buys rival broadcast company Tegna in $6.2-billion deal, vows to preserve ‘diversity’
Nexstar's move follows the Trump administration’s decision on August 7 to delete 98 outdated broadcast rules.
Nexstar Media Group, the largest television station owner in the US, has entered into a definitive agreement to buy broadcast rival Tegna Inc., for a massive figure of $6.2 billion, reports Associated Press. According to the outlet, Nexstar, which currently owns 197 television stations across the US, wants to spend $22 in cash for each share of Tegna’s stock.
Why is Nexstar buying Tegna?
According to Nexstar’s Chairman and CEO, Perry A. Sook, the acquisition of Tegna, which follows the Trump administration’s decision to delete 98 outdated broadcast rules, will amplify Nexstar’s reach in designated market areas (DMAs) like Atlanta, Phoenix, Seattle, and Minneapolis.
“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,” declared Perry A. Sook in a press release.
Nexstar Media Group has stated that Tegna’s acquisition will preserve the “diversity of local voice and opinion” and ensure “long-term vitality of local news and programming from trusted local sources.”
Also read: Disney explores selling ABC Network to Nexstar media for $5.25B
Sinclair proposes merger with Tegna
Amid the announcement by Nexstar, The Wall Street Journal reported that TV-station owner Sinclair has offered to merge its business with Tegna. Sinclair operates 193 TV stations across the US, while Tegna currently owns 68 television stations in 54 markets.
On the other hand, Nexstar oversees the functioning of over 200 TV stations across the country, according to al.com. If Sinclair completes its merger with Tegna, Nextar can potentially own over 450 TV stations in the US.
FAQs:
1. For how much money is Nexstar buying Tegna?
Nexstar is buying Tegna for $6.2 billion.
2. How many TV stations does Tegna currently operate?
Tegna currently operates 68 TV stations across the US.
3. Who is the current CEO of Nexstar?
Perry A. Sook is the current CEO of Nexstar Media Group.
4. How does the acquisition of Tegna help Nexstar?
The acquisition of Tegna will help Nextar amplify its reach in DMAs like Atlanta, Phoenix, Seattle, and Minneapolis.
