Nexstar Media Group has agreed to acquire Tegna in a $6.2 billion transaction, including debt and fees. The deal, which offers Tegna shareholders a 31 per cent premium, would significantly extend Nexstar’s broadcast reach across the United States and test federal ownership limits.
Under the agreement, Tegna shareholders will receive $22 per share, a valuation that represents a 31 per cent premium over its 30-day average price. Pending shareholder and regulatory approval, the transaction is expected to close in the second half of 2026, according to company statements.
The acquisition would give Nexstar control of approximately 265 local television stations in 44 states and Washington, D.C. Collectively, the expanded portfolio would reach an estimated 80 per cent of U.S. households — far exceeding the Federal Communications Commission’s (FCC) long-standing 39 per cent national ownership cap. That rule has been the subject of industry challenge and regulatory reconsideration in recent years.
In announcing the deal, Nexstar Chairman and Chief Executive Perry Sook described the merger as a response to structural changes in the media market. “By combining resources, we can expand our reach, level the playing field, and compete more effectively with the Big Tech and legacy Big Media companies,” Sook said.
Tegna Chief Executive Mike Steib echoed the view that regulatory shifts are creating room for larger players. He told investors that deregulation was “necessary, important and coming” if broadcasters are to remain competitive against digital advertising platforms that dominate audience attention.
Nexstar expects the merger to deliver about $300 million in annual cost synergies. Tegna has forecast operating profit of $770 million for 2026, a figure that Nexstar has pointed to as evidence of the combined company’s strength in both broadcast and digital markets. The companies argue that increased scale will provide advertisers with broader reach and more integrated offerings.
Regulatory analysts note that the merger’s outcome will hinge on how the FCC interprets its statutory mandate. While recent deregulatory moves — including the repeal of nearly 100 legacy rules and a court ruling striking down limits on local station combinations — may ease the path, the 39 per cent cap remains law. Industry watchdogs argue that the cap exists to protect diversity and prevent monopolisation of local news markets.
Beyond regulatory scrutiny, questions persist about the implications for local journalism. Nexstar has been criticised for replicating scripts across its station group to reduce costs, and Tegna has recently cut staff, including its fact-checking “Verify” unit. Media researchers warn that further consolidation could lead to homogenised coverage and less investment in local reporting.
The proposed merger marks the latest in a series of large broadcast consolidations. Nexstar’s 2019 acquisition of Tribune Media made it the largest U.S. broadcaster at the time, and this latest move underscores how ownership consolidation continues to reshape the country’s media landscape.
