Approval from Regulators#
Nexstar Media Group announced that it has received approval from both the Federal Communications Commission (FCC) and the Department of Justice (DOJ) for its acquisition of Tegna, a local TV station operator. This approval marks a significant step in the merger process, which has now officially closed.
Market Reaction#
Following the announcement, Tegna Inc's shares experienced a notable increase of 9.3% in after-hours trading. Meanwhile, Nexstar's shares also rose by 3%. This positive market response reflects investor confidence in the merger's potential benefits.
Details of the Merger#
The FCC stated that Nexstar will own less than 15% of TV stations following the merger. This is important because it helps ensure that no single company has too much control over local media, promoting competition and diversity in broadcasting.
Legal Challenges#
Interestingly, the approval comes shortly after eight states filed lawsuits to prevent the merger, and streaming and satellite TV provider DirecTV also attempted to block the deal. Despite these challenges, the merger has now been finalized, with Nexstar acquiring Tegna for approximately $6.2 billion. This acquisition positions Nexstar as the largest broadcast station group in the United States.