Investment firm Standard General has agreed to acquire media group Tegna Inc., which owns WFAA and KMPX in Dallas. Tegna has stated that the firm will pay $5.4 billion in cash for the transaction. That equals $24 per share, which is 39% above the Tegna closing price in September 2021.
According to a statement on February 22, the deal is expected to close during the second half of the year. The companies valued the agreement at around $8.6 billion, which also includes the assumption of debt.
“Thanks to the team’s stellar execution of the company’s value-creation strategy, Tegna has positioned itself as a leading broadcast television group serving the greater good of the communities in which we operate,” said Tegna Board Chairmen Howard D. Elias. “And as a private company, will have an enhanced ability to keep evolving its local news, programming, and marketing solutions to serve its communities in a rapidly changing media landscape.”
Following the close of the transaction, Tegna stations WFAA and KMPX in Dallas and their sister stations KVUE in Austin and KHOU in Houston will then be acquired by Cox Media Group from Standard General. Tegna will become a private company, and its shares will no longer be available on the New York Stock Exchange.
“This transaction is the next step in Tegna’s evolution and recognizes the value of our portfolio of leading broadcast assets and innovative digital brands,” said Dave Lougee, the President and CEO of Tegna. “We are deeply gratified that Tegna’s new owners value and embrace our purpose to serve the greater good of our communities.”
Tegna currently owns sixty-four television stations in fifty-one United States markets. They are the largest owner of the top four network affiliates in the top twenty-five markets among independent station groups. The company also owns multicast networks, including True Crime Network, Twist, and Quest.
Standard General was founded in 2007 and manages capital for public and private pension funds, foundations, endowments, and high-net-worth companies, including Cox Media Group. The company is run by Founding Partner Soo Kim and a highly experienced seventeen-person team, including professionals with over 120 years of combined experience.
“As long-term investors in the television broadcasting industry, we have a deep admiration for Tegna and the stations it operates and, in particular, for Tegna’s talented employees and their commitment to serving their communities,” said Kim. “We look forward to building on the company’s strong foundation.”