Nexstar Media Group is strategically positioning itself to leverage anticipated broadcast deregulation under the current administration. CEO Perry Sook remains optimistic that the company's $6.2 billion acquisition of Tegna will be completed by the latter half of 2026, despite potential regulatory obstacles. Announced in the third quarter, the deal would establish a major broadcasting entity, reaching an estimated 80% of U.S. households, significantly exceeding the existing 39% national ownership limit. This necessitates considerable regulatory adjustments, but Sook believes progress is being made, particularly after an October court decision that removed restrictions on owning multiple top-four stations in a single market.
“The pieces are falling in place,” Sook stated during Nexstar’s Nov. 6 earnings call. “This administration, the Trump administration and Brendan Carr at the FCC are focused on deregulating business, allowing businesses to breathe, allowing businesses to compete.” Tegna shareholders are scheduled to vote on the transaction on Nov. 18. Nexstar submitted its Hart-Scott-Rodino antitrust notification on Sept. 30 and received the expected second request from the Department of Justice on Oct. 30. The company has prepared 37 applications for the Federal Communications Commission seeking approval to transfer control of Tegna’s licenses, but those filings are currently on hold due to the ongoing government closure. The Eighth Circuit Court of Appeals issued its mandate eliminating the FCC’s “top four” ownership rule on Oct. 21.
“We need the government to reopen for that to happen,” Sook said. He added that Nexstar has been “spending a lot of time in Washington” arguing that the transaction serves the public interest – the standard by which the FCC will evaluate the deal. Nexstar anticipates realizing approximately $300 million in synergies from the combination, with 45% coming from retransmission revenue and the rest from operational efficiencies. CFO Lee Ann Gliha said the company conducted a “very deep analysis” looking “line by line, person by person” at potential cost savings.
Beyond immediate operational synergies, Sook highlighted the Tegna acquisition as essential infrastructure for monetizing ATSC 3.0 spectrum, known as NextGen TV. The combined entity would control spectrum reaching approximately 80% of the country. “That’s the next big frontier for the industry and certainly for Nexstar, who will have more spectrum assets than any other company in our space,” Sook said. He described the “opportunity to develop monetization of the non-video uses of our ATSC 3.0 spectrum” as “the biggest value creation lever in our business as we know it today.”
Sook’s emphasis on NextGen TV signals that Nexstar sees scale in spectrum holdings as essential for negotiating partnerships and developing new revenue streams from the technology. The company plans to “spend a lot of time” on spectrum monetization following the Tegna integration. Asked about implications for the broader broadcast sector, Sook said Nexstar would become “the poster company for not only what the future of the industry will look like, but also the strength of our balance sheet, management team, financial profile and the amount of local content that we deliver.”
President and COO Mike Biard added that Nexstar is “not afraid of competition by any stretch of the imagination,” noting that dealing with tech platforms and large media companies requires a strong broadcast sector. Sook made clear the company’s appetite for dealmaking extends beyond this transaction. “I don’t think that means that we are forever done with acquisitions,” he said. “We will continue to look opportunistically for acquisitions that make good industrial logic and, most importantly, are substantially accretive to the company. I think we’ve got a pretty good track record of finding those, and we will continue that quest.”