Nexstar Media Group Inc has finalized the deal to take over Tribune Media Co for nearly $4.1 billion—a pact that would establish Nexstar as the biggest local U.S. TV station operator said people who are familiar with the matter on Sunday.
Nexstar’s procurement comes just 3 months after Tribune’s $3.9 billion deal with Sinclair Broadcast Group—the current existing leading US local TV station operator—collapsed owing to regulatory obstacles.
Nexstar left Apollo Global Management LLC—a private equity firm—standing by striking an all-cash offer valuing Tribune’s per share at approximately $46.50.
With a market capitalization of $3.8 billion, Nexstar has listed up banks that would provide debt for financing the deal said the sources.
The sources further added that the agreement between Tribune Media and Nexstar will be unveiled on Monday.
Since the matter is confidential, the sources chose to remain unidentified. Citing the reasons that Sinclair botched the efforts to approve the transaction by being too aggressive in dealing with the regulators and delaying the process, Tribune sacked the deal in August and sued Sinclair.
However, after the incident, the broadcast media industry is flooded with merger talks in the course of anticipations that the US Federal Communications Commission (FCC) will relax constraints on the number of stations that broadcasters can operate. Though the FCC hasn’t voted on the matter yet.
Nexstar—based in Irving, Texas—operates, owns, and provides sales and array of other services to 174 television stations touching nearly 39% of the entire US television households. This summer another approach to acquire Nexstar was made by Apollo but was soon rebuffed.
Centred in Chicago, Tribune Media holds possession of 42 local television stations touching nearly 50 million homes. It further holds a national entertainment cable network WGN America providing its valuable service to more than 77 million families. According to the company’s official website it holds Food Network’s shares while its digital application websites draw 54 million unique online visitors every month.
Emerging from bankruptcy in late 2012, Tribune finished a spinoff of its newspaper possessions in 2014.
A few more TV station deals are in the line-up. A private firm Cox Enterprises Inc made it public in July that it was certainly opening to new and fresh strategic options including a latent sale for the fourteen broadcast TV it holds under its possession in various cities like Memphis, Boston, and Atlanta.
As of now, has partnered with private equity firm CVC Capital Partners Ltd Sinclair is following its own deal to acquire the regional sports network that Twenty-First Century Fox Inc has put up on the list to merge its majority of the assets with Walt Disney Co, stated the sources previously.
Coming to the previous Tribune Media deal, FCC accused Sinclair of not completely disclosing the facts that were related to the intended sale of 3 stations counting the preceding business relationships that the company had with potential buyers.
Having a politically conservative element in many of its news broadcasting stations, Sinclair led U.S. President Donald Trump to lash out at FCC’s collapse over the acquisition of Tribune Media in the summer.
Trump expressed his disappointment last July by taking on Twitter, “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.”