Tegna stock jumps after Nexstar talks

Tegna shares rise after reports that Nexstar is in advanced talks to acquire the company, signaling potential shifts in local TV ownership and regulation.

Tegna Stock Surges As Nexstar Talks Advance

Tegna stock jumped nearly 30 percent in mid day trading after Deadline and The Wall Street Journal reported that Nexstar is in advanced talks to buy Tegna. The deal value is not disclosed, but observers expect it to run into the billions. Tegna previously rejected a roughly 8.6 billion dollar offer in 2023 from Standard General, a deal that stalled after the FCC raised concerns about layoffs. The reports emerged as both companies posted stronger second quarter results. Nexstar has grown into a large operator with more than 200 stations in 116 markets and assets such as the CW broadcast network, underscoring the potential scale of a Tegna acquisition.

Regulatory considerations loom large. The current ownership cap limits how much of the national audience a single entity can control, and regulators are weighing changes that could loosen or remove the cap. FCC commissioner Brendan Carr has signaled support for deregulation actions, while a recent Eighth Circuit ruling loosened in market constraints for some owners. Public comments are ongoing with responses due August 22. Tegna and Nexstar have not publicly commented on the talks, though Tegna chief executive Mike Steib welcomed the idea of deregulation on a earnings call, saying it could create opportunities if rules shift.

The episode highlights a broader push toward scale in a fragmented local TV landscape. If ownership limits are relaxed, the market could see faster consolidation, advantaging large groups while potentially squeezing smaller players and reducing newsroom diversity. The political and regulatory debate will matter as much as any price tag, because policy decisions can reshape the risks and rewards for investors and workers alike. Even with potential upside for shareholders, the path to a deal remains uncertain as regulators weigh public interest concerns against corporate efficiency.

For investors, a deregulated environment could unlock growth but comes with policy and legal risk. For Tegna employees and local viewers, more consolidation can mean job changes and changes to how local news is produced. Regulators face the challenge of encouraging investment without eroding competition or local accountability. The next moves will test how far policymakers are willing to bend to a changing media map while protecting public interests.

Highlights

The evolving ownership landscape will keep watching eyes on Capitol Hill and the courtroom.