Nexstar Media (NXST) has agreed to acquire rival Tegna (TGNA) in a $6.2 billion cash deal, including debt and transaction costs. The merger, expected to close in the second half of 2026, will create a local TV powerhouse with 265 full-power stations across 44 states and Washington, D.C., reaching 80% of U.S. households. NXST stock was up over 2% in after-hours trading on Tuesday.
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Nexstar has offered $22 per share for Tegna, about 44% more than TGNA stock’s price before news of the deal came out on August 8.
In other key deal terms, Tegna would pay NXST $120 million if it backs out to accept a better offer. But if the deal is blocked by regulators, Nexstar will pay Tegna $125 million, according to the SEC filing.
Local TV Powerhouse in the Making
The combined company will have stations in nine of the top 10 U.S. markets and 41 of the top 50, giving Nexstar solid reach in local news and programming. Also, Tegna’s strong presence in cities such as Atlanta, Phoenix, Seattle, and Minneapolis will help NXST expand its footprint and advertising potential.
Nexstar CEO Perry Sook said the deal positions the company to better compete with legacy media giants. “Tegna represents the best option for Nexstar to expand reach and preserve trusted local journalism,” he said, citing deregulation efforts under the Trump administration as a key factor behind the merger.
Regulatory Hurdles Ahead
The deal still needs approval from regulators and Tegna shareholders. Importantly, the acquisition comes amid calls to update old rules about who can own TV stations. One key rule prohibits a company from reaching more than 39% of U.S. viewers. The FCC, now led by Chairman Brendan Carr, is asking the public for feedback, suggesting it might support raising that limit.
However, some lawmakers and public groups worry that if one company owns too many TV stations, it could reduce diversity in local news coverage.
Meanwhile, Nexstar believes its past success, such as the acquisition of Tribune Media in 2019, shows it can handle the growth responsibly.
What Is the Price Target for NXST?
Turning to Wall Street, NXST has a Strong Buy consensus rating based on five Buys and one Hold assigned in the last three months. At $233, the average Nexstar stock price target implies 12.16% upside potential.
