Earlier this week, Nexstar Media Group announced plans to acquire TV broadcasting rival TEGNA in a $6.2 billion deal. CEO Perry Sook is sharing insight into why the move was a necessary one.
Nexstar is set to acquire all of the outstanding shares of TEGNA for $22 per share, which is a 31% premium compared to the company’s 30-day average stock price. The transaction has already been approved by the Board of Directors at TEGNA.
Once the deal is closed, Nexstar Media Group will then have 265 TV stations in 44 states and the District of Columbia. Additionally, it will feature outlets in 132 of the country’s 210 markets.
During a call with Wall Street analysts, Sook said the move was a critical step to give local journalism a chance to compete with unregulated Big Tech companies.
“We don’t think anyone wants their news delivered by a chatbot, and that’s where we’re headed if we can’t become a bigger company, a stronger company to attempt to compete with Big Tech, at least on a level playing field in the United States,” said Sook.
Nexstar says it hopes to have the transaction closed by the second half of 2026. Sook added that he is unconcerned about the deal passing through regulators.
“We feel very, very positive about moving forward with the regulatory approval process,” Sook said. “We expect that all of those processes will move forward during the pendency of the transaction, so we feel very confident, as I said earlier, we’re meeting this regulator moment where it is and we will work together with regulators as they consider modifying and repealing outdated rules and regulations.”
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