(Reuters) -Television broadcaster Nexstar Media Group is in advanced talks to acquire rival Tegna, the Wall Street Journal reported on Friday, citing people familiar with the matter.
Shares of Tegna surged 30% in extended trading following the report, while Nexstar’s shares remained flat.
A potential deal between the two companies would mark a significant step in the ongoing consolidation of the U.S. television industry, as broadcasters adapt to shifting consumer habits driven by cord-cutting and the rapid expansion of streaming, amid expectations of looser regulations under U.S. President Donald Trump’s administration.
Nexstar, owns or partners with over 200 stations in 116 markets. It also operates high-profile media properties including The CW and NewsNation, and has recently increased its focus on sports content.
Tegna owns 64 stations and operates networks such as True Crime Network. The company has a market valuation of approximately $2.42 billion, compared with Nexstar’s $5.56 billion, according to LSEG data.
A deal could materialize soon, provided the talks do not encounter last-minute snags, according to the report
Tegna has been subject to takeover interest in the past. In 2022, it agreed to be taken private by Standard General in a deal valued at $8.6 billion, including debt, but later terminated the merger agreement following regulatory scrutiny.
Nexstar declined to comment. Tegna did not immediately respond to Reuters’ request for comment.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Tasim Zahid)
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