“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,” reports Reuters in a scoop.
The report says that “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.”
Nexstar owns, operates 171 television stations reaching 38.7% of all U.S. television households. The Reuters story says that “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.”