The Nexstar Tribune Merger Agreement: What You Need to Know
In late 2018, media companies Nexstar Broadcasting Group and Tribune Media announced they had entered into a definitive merger agreement, a move that would create the largest local television broadcaster in the United States. The deal, valued at $4.1 billion, was completed in September of 2019, but the merger has continued to make headlines.
Here`s what you need to know about the Nexstar Tribune merger agreement:
What is Nexstar Broadcasting Group?
Nexstar Broadcasting Group is a media company with headquarters in Irving, Texas. It operates 174 television stations across the United States, reaching over 38 percent of households. In addition to its television stations, Nexstar also owns digital media and advertising businesses.
What is Tribune Media?
Tribune Media is a media company based in Chicago, Illinois. It operates 42 television stations across the United States and is also involved in digital media and advertising businesses. Tribune Media was previously known as Tribune Company until 2014 when it spun off its publishing arm, which included newspapers such as the Chicago Tribune and the Los Angeles Times.
Why did Nexstar and Tribune merge?
The merger between Nexstar and Tribune was driven by a desire to create a larger media company with a broader geographical reach. With the merger, the combined company would own more than 200 local television stations, making it the largest local broadcaster in the country.
What were the terms of the merger?
Under the terms of the merger, Nexstar acquired all outstanding shares of Tribune Media for $4.1 billion. The deal was funded through a combination of cash on hand, debt financing, and new equity.
What challenges did the merger face?
The merger faced several challenges along the way. In particular, the proposed deal faced scrutiny from federal regulators concerned about the impact on media diversity and local news coverage. To address these concerns, Nexstar and Tribune agreed to divest television stations in certain markets, such as Indianapolis and Memphis.
What has happened since the merger?
Since the completion of the merger in September 2019, Nexstar has continued to expand its media presence. In February 2020, the company announced that it had acquired BestReviews, a product review website. The move is expected to help Nexstar strengthen its e-commerce and digital advertising capabilities.
Overall, the Nexstar Tribune merger agreement has created a media company with a strong foothold in the local television market. While the merger faced challenges, the combined company is poised to continue to grow and expand its media presence.
