Nexstar to buy Tribune Media in $6.4bn deal
Nexstar Media Group has agreed to buy Tribune Media Company in a $6.4bn deal.
Tribune Media Co.
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14:25 11/03/24
The offer price of $46.50 per share reflects a 15.5% premium to the closing price of Tribune shares on Friday. Tribune shareholders will be entitled to an additional cash consideration of around $0.30 a month if the transaction has not closed by the end of August next year.
Upon closing, the deal - which has been approved by the boards of directors of both companies and is expected to close late in the third quarter of 2019 - is expected to be immediately accretive to Nexstar's operating results inclusive of expected operating synergies of about $160m in the first year after completion.
Nexstar chairman, president and chief executive officer Perry Sook said: "Nexstar has long viewed the acquisition of Tribune Media as a strategically, financially and operationally compelling opportunity that brings immediate value to shareholders of both companies. We have thoughtfully structured the transaction in a manner that positions the combined entity to better compete in today’s rapidly transforming industry landscape and better serve the local communities, consumers and businesses where we operate.
"As with our past transactions, we have developed a comprehensive regulatory compliance plan and believe we have a clear path to closing. With committed financing and a plan for significant synergy realization that will result in only a minimal increase in Nexstar’s pro-forma leverage, the combined entity will be poised for growth, leverage reduction and increased capital returns for shareholders."
Nexstar said the combined entity will be one of the nation’s leading providers of local news, entertainment, sports, lifestyle and network programming through its broadcast and digital media platforms with pro-forma annual revenue of approximately $4.6bn and pro-forma adjusted EBITDA of $1.7bn.
At 1330 GMT, Nexstar shares were up 1.2% in pre-market trade at $83.60 and Tribune shares were up 9.8% to $44.20.