Nexstar Media, a leading local media company with great national reach, has agreed to the acquisition of Tribune Media Company at the cost of $4.1 billion. With the deal, the two companies’ combined will make the most significant television station operator in America. This deal will be announced early this week.
Nexstar is at the moment the second-largest local television station owner in the country. The Irvin-based company, in Texas, comes right behind Sinclair. The success of this acquisition will make Nexstar the most significant local operator in the US. During the bidding process, Nexstar outdid equity firm Apollo Global Management to acquire the company and the announcement might be done this Monday.
As one of the largest local TV station operators in the country, Nexstar Media Group has a reach of 171 full-power television stations in 100 markets, covering about 38.7% of US television households. It is also a diversified, growing digital media operator. The company offers excellent audience engagement across all media devices as well as local broadcast television’s unique influence on consumers’ purchasing and political decisions.
The acquisition move comes months after a proposed merger between the Tribune and Sinclair Broadcast Group drew concerns from the FCC, which led to the failing of that idea. In 2017, Sinclair was already set to buy Tribune Media at the cost of $3.9 billion, which will make it possible for the company to reach more than 70% of US households.
After the announcement, FCC rolled back some rules that were designed to prevent major companies from owning newspapers and broadcasters or more than two TV stations in the same local market, stating that those kinds of rules were outdated. The rollback was criticized so much, with many people saying that it was unfairly going to benefit Sinclair. FCC then launched a probe to find out whether Chairman Ajit Pai acted improperly, but it was recently found that there was no evidence of impropriety. Sinclair’s bid to acquire Tribune collapsed in the end, but the latter is about to be received now.