Nexstar Media Group (NXST) is set to expand its dominance in US broadcasting with a $6.2 billion acquisition of Tegna Inc. (TGNA), a deal that will create the nation’s largest local TV station group.
The transaction, which includes Tegna’s net debt and fees, is expected to close in the second half of 2026 pending regulatory approvals. The Wall Street Journal first reported earlier this month that Nexstar was in advanced talks to acquire Tegna.
Shares of Nexstar jumped over 6% shortly after the opening bell on Tuesday, while Tegna shares rose around 4% on the news.
According to the release, the combination will create a leading local media company with 265 full-power television stations in 44 states and Washington, D.C., covering 132 of the nation’s 210 television markets and reaching about 80% of US TV households. The new entity will hold stations in nine of the top 10 designated market areas (DMAs) and 41 of the top 50.
Nexstar Chairman and CEO Perry Sook said the merger reflects both companies’ commitment to local broadcasting and builds on Nexstar’s “record of growth” through acquisitions, which includes its 2019 purchase of Tribune Media and its majority stake in The CW network in 2022.
Sook added that deregulatory initiatives from the Trump administration have created an opportunity for broadcasters “to expand reach, level the playing field, and compete more effectively with the Big Tech and legacy Big Media companies.”
The companies expect about $300 million in annual net synergies and project the transaction will be more than 40% accretive to Nexstar’s free cash flow in the first 12 months post-closing.
Citi analyst Jason Bazinet said the transaction adds about $25 per share of M&A value to Nexstar’s outlook. He raised his price target on the stock to $218 from $186 as a result, while maintaining a Neutral rating.