Feb 22, 2022 - Economy

TV broadcaster Tegna sells in $5.4 billion cash deal

Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images

Tegna, one of the largest U.S. local news broadcast companies, has sold to one of its largest shareholders, Standard General, in a $5.4 billion deal backed by private equity giant Apollo Global Management, the companies said Tuesday.

Why it matters: Consolidation in local media has accelerated in recent years as private investment firms look to squeeze profits out of local news companies whose businesses have been in terminal decline.

Details: Standard General and Apollo are buying Tegna at $24 per share in cash.

The companies said the deal has an equity value of about $5.4 billion and an enterprise value of about $8.6 billion.
Deb McDermott, who currently serves as CEO of Standard Media, a subsidiary of Standard General, will become CEO. Soo Kim, founding partner of Standard General, will serve as chairman of the company's new board.

Be smart: Private bidders have been circulating Tegna for some time. Byron Allen, the media mogul who owns The Weather Channel and other networks, reportedly raised $10 billion in preferred equity and debt in a bid for Tegna.

The big picture: Private investment firms have pushed to consolidate local titles, betting that they can squeeze more profits out of those entities before they die out.

Apollo, for example, acquired Cox Media Group in 2019. It had also reportedly eyed a bid for Nexstar, prior to its merger with Tribune in 2019.

What's next: The deal is expected to close in the second half of 2022 following regulatory approval.

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TV broadcaster Tegna sells in $5.4 billion cash deal

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