(Reuters) -Television broadcaster Nexstar Media Group is in advanced talks to acquire rival Tegna, a person familiar with the matter told Reuters on Friday.
Shares of Tegna surged 30% in extended trading following the report, while Nexstar’s shares were largely flat.
A potential deal between the two companies would mark a significant step in the ongoing consolidation of the U.S. television industry, as broadcasters adapt to shifting consumer habits driven by cord-cutting and the rapid expansion of streaming, amid expectations of looser regulations under U.S. President Donald Trump’s administration.
Nexstar, owns or partners with over 200 stations in 116 markets. It also operates high-profile media properties including The CW and NewsNation, and has recently increased its focus on sports content.
Tegna owns 64 stations and operates networks such as True Crime Network. The company has a market valuation of approximately $2.42 billion, compared with Nexstar’s $5.56 billion, according to LSEG data.
The Wall Street Journal, which first reported the talks, said a deal could be finalized soon, provided negotiations avoid last-minute obstacles.
Both Nexstar and Tegna declined to comment on the report.
Tegna has been subject to takeover interest in the past. In 2022, it agreed to be taken private by Standard General in a deal valued at $8.6 billion, including debt, but later terminated the merger agreement following regulatory scrutiny.
(Reporting by Milana Vinn in New York and Arsheeya Bajwa in Bengaluru; Editing by Tasim Zahid)