Nexstar's $3.54 Billion Tegna Acquisition Boosts Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy NXST?
Source: Fool
Nexstar Media Group Inc. shares surged by 12.76% as the company reached a 52-week high following the announcement of its $3.54 billion acquisition of Tegna, pending regulatory approval.
The acquisition, which is set to close in the second half of 2026, is supported by President Trump's endorsement, indicating a shift in the competitive landscape of the media sector. This deal will position Nexstar as the largest regional TV station operator in the U.S., controlling over 200 stations, which is expected to enhance its market influence significantly.
The positive market reaction reflects investor confidence in Nexstar's strategic move to strengthen its position amid increasing competition. The acquisition is anticipated to reshape the media landscape, potentially triggering further consolidation in the industry.
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Analyst Views on NXST
Wall Street analysts forecast NXST stock price to fall
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 233.400
Low
204.00
Averages
232.25
High
250.00
Current: 233.400
Low
204.00
Averages
232.25
High
250.00
About NXST
Nexstar Media Group, Inc. is a diversified media company with television broadcasting, television network and digital media assets operating in the United States. The Company produces and distributes engaging local and national news, sports and entertainment content across its television and digital platforms. The Company’s reportable broadcast segment includes television stations and related local websites that Nexstar owns, operates, programs or provides sales and other services to in various markets across the United States, NewsNation, a national cable news network, two owned and operated multicast networks and other multicast network services, and WGN-AM, a Chicago radio station. The other operating segments, The CW and digital businesses, focused on the national marketplace. The Company’s portfolio of digital assets, including its local TV station websites, The Hill and NewsNationNow.com. Its national television properties include The CW, NewsNation, Antenna TV, and Rewind TV.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Trump Backs Nexstar's $3.54B Tegna Acquisition Amid Regulatory Changes
- Support and Opposition: President Trump initially backed Nexstar's $3.54 billion acquisition of Tegna but later opposed it in November, citing concerns over increased influence for left-leaning networks, highlighting the significant impact of political factors on media consolidation.
- FCC Chair's Position: FCC Chair Brendan Carr expressed support for the transaction and indicated that it would move forward, although he did not clarify whether it would receive backing from the full commission, which could affect the approval process for the deal.
- Regulatory Changes: The National Association of Broadcasters has urged the FCC to eliminate its 85-year-old nationwide television ownership regulation, arguing that it creates an uneven playing field, potentially paving the way for Nexstar and Tegna's merger and reflecting the industry's urgent need for regulatory reform.
- Market Reaction: Nexstar and Tegna shares have risen 56% and 15.6% respectively over the past year, indicating investor optimism regarding the merger prospects, although retail sentiment on Stocktwits remained neutral in the past 24 hours, suggesting a cautious outlook on future developments.
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Nexstar to Participate in Investor Conferences
- Conference Schedule: Nexstar Media Group will participate in the Morgan Stanley Technology, Media & Telecom Conference and the Deutsche Bank 34th Annual Media, Internet & Telecom Conference in March 2026, showcasing its leadership in the media industry.
- Executive Speakers: CEO Perry A. Sook and CFO Lee Ann Gliha will engage in fireside chats at both conferences, sharing company strategies and future outlooks to bolster investor confidence.
- Live Webcast: The fireside chats will be available via live webcast and replay on Nexstar's website under the 'Investor Relations' section, ensuring that investors unable to attend in person can still access critical information.
- Company Background: Nexstar is the largest local television broadcasting group in the U.S., owning over 200 channels across 116 markets and producing more than 317,000 hours of programming annually, demonstrating its significant influence in the media sector.
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- Technology Utilization: The company plans to leverage artificial intelligence to optimize news gathering processes, alleviating administrative burdens on journalists, thereby allowing them to focus more on reporting and improving news quality and responsiveness.
- Financial Outlook: Scripps expects its financial performance in 2026 to be bolstered by significant events such as midterm elections and the Winter Olympics, further solidifying its advertising revenue in the local broadcast market.
- Industry Challenges: In the face of challenges within the traditional broadcasting sector, Scripps rejected a merger proposal from Sinclair, emphasizing sustainable growth through smaller transactions and internal restructuring, demonstrating a commitment to innovation in a competitive market.
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- Economic Warning Sign: The contrasting financial results from these two companies may indicate broader economic challenges facing American consumers.
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Broadcast Ownership Rule Controversy
- Ownership Cap Debate: The National Association of Broadcasters (NAB) is set to clash with right-wing channel Newsmax over the national television ownership rule, which limits broadcasters to 39% of U.S. TV households, highlighting concerns over competition and diversity.
- Newsmax's Position: Newsmax CEO Chris Ruddy argues that the rule is one of the last meaningful protections for competition, warning that raising the ownership cap would allow a few corporations to control most TV stations, thereby undermining local news independence.
- NAB's Argument: NAB CEO Curtis LeGeyt advocates for lifting the outdated cap, asserting that the current rules are unfair to broadcasters, especially as Big Tech companies face no such restrictions, which limits the revenue base for local journalism.
- Political Support and Opposition: Trump endorsed Nexstar's proposal to acquire Tegna on social media, with FCC Chair Brendan Carr backing him, suggesting that lifting the cap would enhance competition, while Senator Cantwell cautioned that it would accelerate the consolidation of local newsrooms.
See More
Software Stocks Rebound, AppLovin Surges 14%
- Software Stock Rebound: Following last week's severe selloff, the iShares Expanded Tech-Software Sector ETF (NYSE:IGV) jumped over 3% on Monday, marking its strongest daily gain since late April 2025, indicating renewed investor interest in software stocks and a potential recovery in market confidence.
- Nasdaq Outperformance: The Nasdaq 100 climbed 1%, significantly outperforming broader Wall Street, while the S&P 500 added 0.7%, suggesting that the strong rebound in tech stocks is driving overall market gains and may attract more capital inflows.
- Individual Stock Surge: AppLovin Corp. (NASDAQ:APP) surged more than 14% after logging four consecutive weekly declines, reflecting optimistic market sentiment regarding its future growth potential, which could draw more investor attention to the company.
- Commodity Market Recovery: Oil prices rose over 2% to $64.6 a barrel, while gold rebounded 2.5% to $5,090 an ounce, and silver soared over 6% to $82 an ounce, indicating an improvement in market risk appetite that may positively impact related industries.
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Trump Backs Nexstar's $3.54B Tegna Acquisition Amid Regulatory Changes
- Support and Opposition: President Trump initially backed Nexstar's $3.54 billion acquisition of Tegna but later opposed it in November, citing concerns over increased influence for left-leaning networks, highlighting the significant impact of political factors on media consolidation.
- FCC Chair's Position: FCC Chair Brendan Carr expressed support for the transaction and indicated that it would move forward, although he did not clarify whether it would receive backing from the full commission, which could affect the approval process for the deal.
- Regulatory Changes: The National Association of Broadcasters has urged the FCC to eliminate its 85-year-old nationwide television ownership regulation, arguing that it creates an uneven playing field, potentially paving the way for Nexstar and Tegna's merger and reflecting the industry's urgent need for regulatory reform.
- Market Reaction: Nexstar and Tegna shares have risen 56% and 15.6% respectively over the past year, indicating investor optimism regarding the merger prospects, although retail sentiment on Stocktwits remained neutral in the past 24 hours, suggesting a cautious outlook on future developments.
See More
Nexstar to Participate in Investor Conferences
- Conference Schedule: Nexstar Media Group will participate in the Morgan Stanley Technology, Media & Telecom Conference and the Deutsche Bank 34th Annual Media, Internet & Telecom Conference in March 2026, showcasing its leadership in the media industry.
- Executive Speakers: CEO Perry A. Sook and CFO Lee Ann Gliha will engage in fireside chats at both conferences, sharing company strategies and future outlooks to bolster investor confidence.
- Live Webcast: The fireside chats will be available via live webcast and replay on Nexstar's website under the 'Investor Relations' section, ensuring that investors unable to attend in person can still access critical information.
- Company Background: Nexstar is the largest local television broadcasting group in the U.S., owning over 200 channels across 116 markets and producing more than 317,000 hours of programming annually, demonstrating its significant influence in the media sector.
See More
E.W. Scripps Launches Transformation Plan for Growth
- Transformation Goals: E.W. Scripps aims to achieve annual enterprise EBITDA growth of $125 million to $150 million by 2028 through technology-driven cost savings and revenue growth measures, intending to enhance overall operational efficiency.
- Technology Utilization: The company plans to leverage artificial intelligence to optimize news gathering processes, alleviating administrative burdens on journalists, thereby allowing them to focus more on reporting and improving news quality and responsiveness.
- Financial Outlook: Scripps expects its financial performance in 2026 to be bolstered by significant events such as midterm elections and the Winter Olympics, further solidifying its advertising revenue in the local broadcast market.
- Industry Challenges: In the face of challenges within the traditional broadcasting sector, Scripps rejected a merger proposal from Sinclair, emphasizing sustainable growth through smaller transactions and internal restructuring, demonstrating a commitment to innovation in a competitive market.
See More
Mattel and Hasbro Earnings Signal a Warning for Markets and Present Challenges for the Fed.
- Diverging Earnings: Hasbro and Mattel reported sharply different earnings, highlighting a significant divide in consumer behavior in the U.S. toy market.
- Economic Warning Sign: The contrasting financial results from these two companies may indicate broader economic challenges facing American consumers.
See More
Broadcast Ownership Rule Controversy
- Ownership Cap Debate: The National Association of Broadcasters (NAB) is set to clash with right-wing channel Newsmax over the national television ownership rule, which limits broadcasters to 39% of U.S. TV households, highlighting concerns over competition and diversity.
- Newsmax's Position: Newsmax CEO Chris Ruddy argues that the rule is one of the last meaningful protections for competition, warning that raising the ownership cap would allow a few corporations to control most TV stations, thereby undermining local news independence.
- NAB's Argument: NAB CEO Curtis LeGeyt advocates for lifting the outdated cap, asserting that the current rules are unfair to broadcasters, especially as Big Tech companies face no such restrictions, which limits the revenue base for local journalism.
- Political Support and Opposition: Trump endorsed Nexstar's proposal to acquire Tegna on social media, with FCC Chair Brendan Carr backing him, suggesting that lifting the cap would enhance competition, while Senator Cantwell cautioned that it would accelerate the consolidation of local newsrooms.
See More
Software Stocks Rebound, AppLovin Surges 14%
- Software Stock Rebound: Following last week's severe selloff, the iShares Expanded Tech-Software Sector ETF (NYSE:IGV) jumped over 3% on Monday, marking its strongest daily gain since late April 2025, indicating renewed investor interest in software stocks and a potential recovery in market confidence.
- Nasdaq Outperformance: The Nasdaq 100 climbed 1%, significantly outperforming broader Wall Street, while the S&P 500 added 0.7%, suggesting that the strong rebound in tech stocks is driving overall market gains and may attract more capital inflows.
- Individual Stock Surge: AppLovin Corp. (NASDAQ:APP) surged more than 14% after logging four consecutive weekly declines, reflecting optimistic market sentiment regarding its future growth potential, which could draw more investor attention to the company.
- Commodity Market Recovery: Oil prices rose over 2% to $64.6 a barrel, while gold rebounded 2.5% to $5,090 an ounce, and silver soared over 6% to $82 an ounce, indicating an improvement in market risk appetite that may positively impact related industries.
See More
