Nexstar Media is set to acquire Tegna for $3.54 billion, creating a local-TV powerhouse that aims to compete with Big Tech for advertising dollars. The deal will expand Nexstar’s presence in major U.S. markets like Atlanta and Seattle, covering 80% of TV households.

The media M&A wave continues as firms prepare for a streaming future. Nexstar and Tegna are optimistic about looser antitrust policies under President Trump. The FCC is reviewing rules on station ownership limits, offering broadcasters the opportunity to expand reach and compete effectively.

Nexstar owns over 200 stations, while Tegna operates 64 stations and networks. The deal is expected to result in annual cost savings of $300 million. Financing is secured from major banks, with the deal set to close in the second half of 2026. Termination or regulatory blockage may result in financial penalties.

Despite a strong fiscal 2024, both Tegna and Nexstar have seen revenue and profit declines. The deal gives Nexstar an advantage in the broadcast industry, but challenges remain, including competition for premium content and advertising share. Nexstar’s shares remained flat, while Tegna’s rose 4% to match the offer price of $22 per share. Financial advisers include BofA Securities, J.P. Morgan Securities, Goldman Sachs, and Allen & Company.

Read more at Yahoo Finance: Nexstar to buy smaller rival Tegna for $3.54 billion in big local-TV deal