Nexstar to buy rival broadcasting group Tegna for $6.2bn

(Sharecast News) - American broadcasting group Nexstar is to acquire rival Tegna for $6.2bn, bolstering its position in the local media market. Nexstar said it is buying Tegna for $22.00 a share, representing a 31% premium to the average stock price over the 30 days prior to 8 August, when media speculation surrounding the deal first began.

TGNA shares were up 4.4% at $21.06 by 1105 ET, having surged by 27% over the past month. Nexstar was up 2.6% at $211.69.

"The new company will be better able to serve communities by ensuring the long-term vitality of local news and programming from trusted local sources and preserving the diversity of local voice and opinion," Nexstar said in a statement.

The group also said it will be able to give advertisers a better variety of local and national broadcast and digital advertising solutions, expanding into key so-called 'designated market areas' (DMAs) like Atlanta, Phoenix, Seattle and Minneapolis.

"TEGNA is a premier operator with high quality local television stations primarily in the top 75 DMAs," Nexstar chief executive and chair Perry Sook.

"We and TEGNA are similarly dedicated to providing communities of all sizes with the best programming and fact-based local journalism along with innovative digital products and marketing solutions for local viewers and advertisers."