Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Exclusive: Nexstar clinches $4.1 billion deal to acquire Tribune Media - sources

Stock Markets Dec 02, 2018 02:13PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A Tribune Broadcasting Los Angeles affiliate KTLA 5 television satellite truck is seen in Hollywood, Los Angeles
 
DIS
-2.21%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TFCF
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Carl O'Donnell and Liana B. Baker

(Reuters) - Nexstar Media Group Inc has reached an agreement to acquire Tribune Media Co for about $4.1 billion, a deal which would make it the largest local U.S. TV station operator, people familiar with the matter said on Sunday.

Nexstar's acquisition would come just three months after Tribune's $3.9 billion deal to sell itself to Sinclair Broadcast Group Inc, currently the largest U.S. local TV station operator, collapsed over regulatory hurdles.

Nexstar outbid private equity firm Apollo Global Management LLC with an all-cash offer that values Tribune at around $46.50 per share, three sources said. Tribune shares ended trading on Friday at $40.26.

Nexstar, which has a market capitalization of $3.8 billion, has lined up banks to provide debt financing for the deal, the sources added.

The agreement between Nexstar and Tribune Media could be announced by Monday, according to the sources.

The sources asked not to be identified because the matter is confidential. Tribune and Apollo declined to comment, while Nexstar and Sinclair did not immediately respond to requests for comment.

Tribune terminated its deal with Sinclair in August, and filed a lawsuit arguing that the latter mishandled efforts to get the transaction approved by taking too long and being too aggressive in its dealings with regulators.

However, since then the broadcast media sector has seen a flurry of merger talks, amid expectations that the U.S. Federal Communications Commission (FCC) could relax restrictions on how many stations broadcasters can operate. The FCC has yet to vote on the matter.

Based in Irving, Texas, Nexstar owns, operates and provides sales and other services to 174 television stations reaching nearly 39 percent of all U.S. television households. Apollo also approached Nexstar this summer about acquiring it, but was rebuffed, Reuters previously reported.

Based in Chicago, Tribune Media owns or operates 42 local television stations reaching approximately 50 million households. It also owns national entertainment cable network WGN America, whose reach is more than 77 million households, and a variety of digital applications and websites commanding 54 million monthly unique visitors online, according to its website. It also has a stake in the Food Network.

Tribune emerged from bankruptcy in late 2012 and completed a spinoff of its newspaper assets in 2014.

More TV station deals are in the works. Privately held Cox Enterprises Inc announced in July that it was exploring strategic options, including a potential sale, for the 14 broadcast TV stations it owns in cities such as Atlanta, Boston and Memphis. [nFWN1VC0HO]

Sinclair is currently also pursuing its own separate deal, having partnered with private equity firm CVC Capital Partners Ltd to bid for the regional sports networks that Twenty-First Century Fox Inc (NASDAQ:FOX) is selling following its deal to merge most of its assets with Walt Disney (NYSE:DIS) Co, sources have previously said.

When it came to the previous Tribune Media deal, FCC said Sinclair did not “fully disclose facts” relating to the planned sale of three stations, including pre-existing business relationships the company had with prospective buyers.

Sinclair has a politically conservative streak in the news broadcasts of many of its stations, leading to U.S. President Donald Trump to criticize the FCC over the collapse of the acquisition of Tribune Media in the summer.

"So sad and unfair that the FCC wouldn’t approve the Sinclair Broadcast merger with Tribune. This would have been a great and much needed Conservative voice for and of the People,” Trump wrote on Twitter last July.

Exclusive: Nexstar clinches $4.1 billion deal to acquire Tribune Media - sources
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email