Nexstar (NASDAQ: NXST) announces $6.2 billion acquisition deal

(NYSE: TEGNA) stock rose 2.8% after Nexstar Media Group (NASDAQ: NXST) announced it will acquire the broadcast company for $6.2 billion in an all-cash transaction.

The deal values TEGNA at $22.00 per share, representing a 31% premium to TEGNA’s average 30-day stock price ending August 8, 2025. The acquisition, which has been unanimously approved by TEGNA’s board of directors, will create a broadcasting powerhouse with 265 full-power television stations across 44 states and the District of Columbia.

Nexstar, whose shares were halted ahead of the announcement, aims to enhance its position as a leading local media company through the transaction. The combined entity will have stations in 9 of the top 10 designated market areas (DMAs) and will reach approximately 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.”

The companies expect to generate annual net synergies of approximately $300 million from revenue opportunities and operating expense reductions. The deal is projected to be more than 40% accretive to Nexstar’s standalone adjusted free cash flow in the first twelve months after closing.

Following the acquisition, Nexstar’s net leverage ratio is expected to be approximately 4x at closing, with plans to reduce leverage to current levels by 2028.

The transaction, subject to TEGNA shareholder and regulatory approvals, is expected to close by the second half of 2026.