Larger local sports broadcasting company emerges through Nexstar's acquisition of Tegna
In a significant move in the broadcasting industry, Nexstar, the largest broadcast affiliate owner in the U.S., has agreed to buy smaller rival Tegna in an all-cash deal valued at $6.2 billion. The deal, expected to close in the second half of 2026, is pending regulatory review.
The merger will place the new Nexstar in the same tier as Fox and Paramount, with Paramount officially brought into the Skydance umbrella on Aug. 11. This consolidation will create a media giant that is expected to generate over $8.1 billion in revenue and $2.6 billion in EBIDTA.
Nexstar, known for its local carriage deals for sports teams in cities like New York City and Los Angeles, will continue to expand its sports coverage. For instance, WPIX carries some New York Mets games, and KTLA carries a select amount of Clippers games. In addition, Nexstar's CW stations in Texas, Louisiana, Oklahoma, and Arkansas carry 15 Texas Rangers games as part of the team's multiplatform Rangers Sports Network.
Tegna, on the other hand, owns Locked On Podcast Network, which operates over 200 daily podcasts covering teams of the four major men's leagues and major college team sports. Tegna stations carried multiple games for the San Antonio Spurs, and KFAA has exclusive local rights to the WNBA's Dallas Wings. In the 2024-25 NBA and NHL seasons, Tegna stations carried 20 games apiece for the Denver Nuggets and Colorado Avalanche.
The pending deal brings together recent benefactors of the disruption of regional sports networks, a trend that has been shaking up the industry. However, it's important to note that no prior information about the Diamond Sports Group (now Main Street Sports Group) bankruptcy saga was provided in this context.
The merger was initially agreed upon in May 2022, but it was aborted in May 2023 due to significant regulatory pressure. The deal's revival in 2026 suggests a more favourable regulatory environment or a change in the regulatory landscape.
The founders of both Nexstar and Locked On Podcast Network have strong ties to sports. Perry Sook, the founder and CEO of Nexstar, praised President Donald Trump and FCC chairman Brendan Carr for encouraging a new environment that will foster more media consolidation. David Locke, the founder of Locked On Podcast Network, is a Utah Jazz radio play-by-play announcer.
As of noon, Nexstar's stock price rose by 0.48% to $207.28, and Tegna's price rose to $21.01, up by 4.19%. The combined company, post-merger, will undoubtedly shake up the broadcasting industry, offering a wide array of sports and podcast content to audiences across the U.S.
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