TEGNA Inc. (NYSE:TGNA) stock climbed 2.8% on Tuesday after Nexstar Media Group (NASDAQ:NXST) announced it would acquire the broadcaster in a $6.2 billion all-cash deal.
The agreement values TEGNA at $22 per share, a 31% premium over the company’s 30-day average stock price ending August 8, 2025. TEGNA’s board has unanimously approved the transaction, which will create one of the largest U.S. broadcasting groups, with 265 full-power stations across 44 states and Washington, D.C.
Trading in Nexstar shares was paused ahead of the news. The company said the acquisition will strengthen its standing as a leading local media player, giving the combined entity a footprint in nine of the top ten designated market areas (DMAs) and access to roughly 80% of U.S. television households.
“TEGNA represents the best option for Nexstar to act on this opportunity,” said Perry A. Sook, Nexstar’s Chairman and CEO. “The transaction will increase Nexstar’s reach through the expansion of our presence in important DMAs such as Atlanta, Phoenix, Seattle, and Minneapolis.”
Nexstar and TEGNA expect the deal to generate around $300 million in annual net synergies through new revenue opportunities and cost efficiencies. The acquisition is projected to boost Nexstar’s adjusted free cash flow by more than 40% in the first year after closing.
At closing, Nexstar anticipates a net leverage ratio of about 4x, with a plan to return to current levels by 2028.
The transaction, which remains subject to shareholder and regulatory approvals, is slated to close in the second half of 2026.
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