Nexstar Seeks Expedited Review of Tegna Merger Halt
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: seekingalpha
- Merger Review Request: Nexstar Media Group has requested the U.S. appeals court to expedite the review of the lower court's order halting its $6.2 billion merger with Tegna, claiming the delay has resulted in tens of millions of dollars in unrecoverable losses, impacting future growth.
- Market Impact: The merger would create the largest broadcast station group in the U.S., reaching 80% of households; however, state attorneys general from California and New York oppose it, arguing it would reduce programming options and increase consumer costs.
- Talent Loss Risk: Nexstar warns that the merger delay is hindering its ability to recruit talent and could lead to irreversible loss of key employees and on-air talent, thereby affecting business decisions and competitive positioning.
- Legal Challenge Outlook: If the court does not reverse the order, a trial on the dispute is unlikely to begin before 2027, with Nexstar required to submit court papers by July 8, facing significant legal and market uncertainties.
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Analyst Views on NXST
Wall Street analysts forecast NXST stock price to rise
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 189.420
Low
204.00
Averages
232.25
High
250.00
Current: 189.420
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.
Nexstar Seeks Expedited Review of Tegna Merger
- Cost of Delay: Nexstar Media Group has requested an expedited review from a U.S. appeals court after a California judge temporarily blocked its $6.2 billion merger with Tegna on April 17, resulting in tens of millions of dollars in unrecoverable operational efficiencies for the company.
- Impact of Merger Scale: If successful, the merger would create the largest broadcast station group in the United States, reaching 80% of households, significantly enhancing Nexstar's market share and competitiveness; however, the current legal challenges put this strategic goal at risk.
- Background of Legal Challenges: The merger faces opposition from a dozen state attorneys general and DirecTV, reflecting concerns about potential monopolistic behavior post-merger, which increases Nexstar's uncertainty in advancing the merger process.
- Appeal Timeline Request: Nexstar is seeking the appeals court to schedule oral arguments for August to expedite the resolution of the merger issue, thereby restoring the company's operational efficiencies and market plans.
See More
Nexstar Seeks Expedited Review of Tegna Merger Halt
- Merger Review Request: Nexstar Media Group has requested the U.S. appeals court to expedite the review of the lower court's order halting its $6.2 billion merger with Tegna, claiming the delay has resulted in tens of millions of dollars in unrecoverable losses, impacting future growth.
- Market Impact: The merger would create the largest broadcast station group in the U.S., reaching 80% of households; however, state attorneys general from California and New York oppose it, arguing it would reduce programming options and increase consumer costs.
- Talent Loss Risk: Nexstar warns that the merger delay is hindering its ability to recruit talent and could lead to irreversible loss of key employees and on-air talent, thereby affecting business decisions and competitive positioning.
- Legal Challenge Outlook: If the court does not reverse the order, a trial on the dispute is unlikely to begin before 2027, with Nexstar required to submit court papers by July 8, facing significant legal and market uncertainties.
See More
David Einhorn Bullish on Overlooked Companies
- Acadia Healthcare: Einhorn highlighted that Acadia's newer facilities are underutilized, needing occupancy rates raised to 70-80% and improved reimbursement negotiations, with a potential share price of $56, doubling the current value.
- Centene's AI Potential: He argued that Centene could significantly benefit from AI in automating claims processing, with a projected stock value between $85 and $102, indicating substantial upside from the current $56 if margins normalize.
- Fluor's Capital Spending Opportunities: Einhorn noted that Fluor is well-positioned to capitalize on a U.S. capital spending boom across various sectors, suggesting shares could reach $115 in a few years, as the market underestimates its exposure to potential super cycles.
- Versant Media's Cash Flow Advantage: He mentioned that Versant Media remains insulated from streaming competition due to its focus on news and live sports, estimating it could generate free cash flow exceeding 60% of its market cap over the next four years for share buybacks or acquisitions.
See More
Nexstar to Participate in Investor Conferences
- Conference Schedule: Nexstar Media Group will present at the JPMorgan Technology, Media and Communications Conference on May 18, 2026, in Boston, where CFO Lee Ann Gliha will participate in a fireside chat at 8:25 a.m., outlining the company's strategic direction in the media industry.
- Second Event: Additionally, Nexstar will engage in a virtual fireside chat at the Gabelli 18th Annual Sports & Media Symposium on June 4, 2026, in New York, featuring COO Michael Biard and CFO Lee Ann Gliha, further elaborating on the company's business developments.
- Live Webcast: Both events will be available for live streaming and replay through the
See More
Nexstar Media Group Q1 2026 Earnings Call Insights
- Acquisition Completed: Nexstar successfully closed its acquisition of TEGNA in Q1 2026, receiving FCC and DOJ approval, despite facing a lawsuit from DIRECTV and several state AGs; management remains optimistic about prevailing in court.
- Strong Financial Performance: The company reported record net revenue of $1.4 billion in Q1, with adjusted EBITDA and free cash flow at $470 million and $420 million respectively, showcasing robust cash generation and debt repayment capabilities, although challenges from a weak advertising environment persist.
- Network Growth Momentum: NewsNation was the fastest-growing network in March 2026 among major broadcast and cable networks, while the CW network improved year-over-year profitability in Q1, with expectations to achieve profitability by Q4 2026, indicating positive progress in the company's network development strategy.
- Cautious Outlook: Management indicated that forward guidance will be limited due to the court-ordered hold-separate structure, with non-political advertising expected to decline mid-single digits in Q2, reflecting uncertainty and overall weakness in the advertising market.
See More
Nexstar Reports Significant Profit Growth in Q1
- Profit Growth: Nexstar Media Group reported a net profit of $164 million for Q1, translating to earnings per share of $5.09, which is a significant increase from last year's $108 million and $3.37 per share, indicating enhanced profitability.
- Revenue Increase: The company's revenue rose by 13.1% year-over-year to $1.396 billion, compared to $1.234 billion last year, showcasing strong performance in the advertising market and an expansion of market share.
- Market Performance: The growth in Nexstar's earnings and revenue highlights its solid market position in the competitive media industry, which is expected to further attract investor interest and confidence.
- Future Outlook: With advertising spending continuing to rebound, Nexstar is poised to achieve further revenue and profit growth in the coming quarters, solidifying its leadership position in the industry.
See More
Nexstar Seeks Expedited Review of Tegna Merger
- Cost of Delay: Nexstar Media Group has requested an expedited review from a U.S. appeals court after a California judge temporarily blocked its $6.2 billion merger with Tegna on April 17, resulting in tens of millions of dollars in unrecoverable operational efficiencies for the company.
- Impact of Merger Scale: If successful, the merger would create the largest broadcast station group in the United States, reaching 80% of households, significantly enhancing Nexstar's market share and competitiveness; however, the current legal challenges put this strategic goal at risk.
- Background of Legal Challenges: The merger faces opposition from a dozen state attorneys general and DirecTV, reflecting concerns about potential monopolistic behavior post-merger, which increases Nexstar's uncertainty in advancing the merger process.
- Appeal Timeline Request: Nexstar is seeking the appeals court to schedule oral arguments for August to expedite the resolution of the merger issue, thereby restoring the company's operational efficiencies and market plans.
See More
Nexstar Seeks Expedited Review of Tegna Merger Halt
- Merger Review Request: Nexstar Media Group has requested the U.S. appeals court to expedite the review of the lower court's order halting its $6.2 billion merger with Tegna, claiming the delay has resulted in tens of millions of dollars in unrecoverable losses, impacting future growth.
- Market Impact: The merger would create the largest broadcast station group in the U.S., reaching 80% of households; however, state attorneys general from California and New York oppose it, arguing it would reduce programming options and increase consumer costs.
- Talent Loss Risk: Nexstar warns that the merger delay is hindering its ability to recruit talent and could lead to irreversible loss of key employees and on-air talent, thereby affecting business decisions and competitive positioning.
- Legal Challenge Outlook: If the court does not reverse the order, a trial on the dispute is unlikely to begin before 2027, with Nexstar required to submit court papers by July 8, facing significant legal and market uncertainties.
See More
David Einhorn Bullish on Overlooked Companies
- Acadia Healthcare: Einhorn highlighted that Acadia's newer facilities are underutilized, needing occupancy rates raised to 70-80% and improved reimbursement negotiations, with a potential share price of $56, doubling the current value.
- Centene's AI Potential: He argued that Centene could significantly benefit from AI in automating claims processing, with a projected stock value between $85 and $102, indicating substantial upside from the current $56 if margins normalize.
- Fluor's Capital Spending Opportunities: Einhorn noted that Fluor is well-positioned to capitalize on a U.S. capital spending boom across various sectors, suggesting shares could reach $115 in a few years, as the market underestimates its exposure to potential super cycles.
- Versant Media's Cash Flow Advantage: He mentioned that Versant Media remains insulated from streaming competition due to its focus on news and live sports, estimating it could generate free cash flow exceeding 60% of its market cap over the next four years for share buybacks or acquisitions.
See More
Nexstar to Participate in Investor Conferences
- Conference Schedule: Nexstar Media Group will present at the JPMorgan Technology, Media and Communications Conference on May 18, 2026, in Boston, where CFO Lee Ann Gliha will participate in a fireside chat at 8:25 a.m., outlining the company's strategic direction in the media industry.
- Second Event: Additionally, Nexstar will engage in a virtual fireside chat at the Gabelli 18th Annual Sports & Media Symposium on June 4, 2026, in New York, featuring COO Michael Biard and CFO Lee Ann Gliha, further elaborating on the company's business developments.
- Live Webcast: Both events will be available for live streaming and replay through the
See More
Nexstar Media Group Q1 2026 Earnings Call Insights
- Acquisition Completed: Nexstar successfully closed its acquisition of TEGNA in Q1 2026, receiving FCC and DOJ approval, despite facing a lawsuit from DIRECTV and several state AGs; management remains optimistic about prevailing in court.
- Strong Financial Performance: The company reported record net revenue of $1.4 billion in Q1, with adjusted EBITDA and free cash flow at $470 million and $420 million respectively, showcasing robust cash generation and debt repayment capabilities, although challenges from a weak advertising environment persist.
- Network Growth Momentum: NewsNation was the fastest-growing network in March 2026 among major broadcast and cable networks, while the CW network improved year-over-year profitability in Q1, with expectations to achieve profitability by Q4 2026, indicating positive progress in the company's network development strategy.
- Cautious Outlook: Management indicated that forward guidance will be limited due to the court-ordered hold-separate structure, with non-political advertising expected to decline mid-single digits in Q2, reflecting uncertainty and overall weakness in the advertising market.
See More
Nexstar Reports Significant Profit Growth in Q1
- Profit Growth: Nexstar Media Group reported a net profit of $164 million for Q1, translating to earnings per share of $5.09, which is a significant increase from last year's $108 million and $3.37 per share, indicating enhanced profitability.
- Revenue Increase: The company's revenue rose by 13.1% year-over-year to $1.396 billion, compared to $1.234 billion last year, showcasing strong performance in the advertising market and an expansion of market share.
- Market Performance: The growth in Nexstar's earnings and revenue highlights its solid market position in the competitive media industry, which is expected to further attract investor interest and confidence.
- Future Outlook: With advertising spending continuing to rebound, Nexstar is poised to achieve further revenue and profit growth in the coming quarters, solidifying its leadership position in the industry.
See More
