(Reuters) -Television broadcaster Nexstar Media Group has agreed to acquire smaller rival Tegna for $3.54 billion, the companies said on Tuesday.
The offer price of $22 per share represents a premium of nearly 44% to Tegna’s closing price on Aug. 8, before reports of a deal emerged. The deal is valued at $6.2 billion, including debt.
Shares of Tegna were up 2.2% in premarket trading at $20.48, after having risen more than 20% this month on expectations of a takeover.
The deal marks yet another notable step in the ongoing consolidation of the U.S. television industry, as traditional cable TV adapts to shifting consumer habits driven by cord-cutting and the rapid expansion of streaming.
Dealmaking has also heated up amid expectations of looser regulations under U.S. President Donald Trump’s administration.
The deal, which is expected to close by the second half of 2026, is expected to boost Nexstar’s reach by expanding its presence in key markets such as Atlanta, Phoenix and Seattle.
Nexstar said it was expecting to generate annual net savings of about $300 million from the deal.
(Reporting by Kritika Lamba in Bengaluru; Editing by Anil D’Silva)
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