In a deal reportedly valued at $8.6 billion, private equity firms Standard General and Apollo Global Management have teamed up to acquire local television giant TEGNA. The firms are paying $24 per share to take over the company that owns 64 stations in 51 markets across the United States. Though the enterprise value of the acquisition is estimated at $8.6 billion, the transaction comes in at approximately $5.4 billion in terms of equity, including the assumption of debt, according to a statement from the companies.
TEGNA is a fairly new company having been founded in 2015 as an independent spinoff of Gannett who at the time separated its TV and print newspaper businesses. TEGNA is the largest independent owner of NBC affiliates in the country. However, because of the size of TEGNA’s portfolio, Apollo’s existing ownership of local TV stations could present regulatory concerns from the federal government as they work to approve the deal.
The deal – which was unanimously approved by TEGNA’s board – is expected to be finalized later this year, at which time five Texas-based TEGNA stations (KVUE in Austin, WFAA and KMPX in Dallas, and KHOU and KTBU in Houston) are expected to be acquired by the Cox Media Group and the company’s OTT advertising platform Premion is expected to become “a standalone business majority owned by Cox Media Group and Standard General,” the companies said in a statement.
“We are pleased to have reached this agreement with Standard General, which follows a thorough review of acquisition proposals received by the Company,” TEGNA Board chairman Howard D. Elias said. “After evaluating this opportunity against TEGNA’s standalone prospects and other strategic alternatives, our Board concluded that this transaction maximizes value for TEGNA shareholders.”
With the acquisition, Deb McDermott will become the CEO and Soo Kim will serve as chairman, making the company the United States’ “largest minority-owned, woman-led broadcast group.”