The Nexstar Media Group Inc has decided to overtake Tribune Media Co at price of around $4.1 billion. This deal will be one of the largest local U.S. TV station operator deal which is going to happen on 3rd December.
This deal came just after the three months of Tribune’s $3.9 billion deal to sell itself to Sinclair Broadcast Group Inc, which is currently the largest U.S. local TV station operator. Sinclair Broadcast Group Inc. has collapsed over regulatory hurdles recently.
As per the sources, Nexstar has out bided the private equity firm Apollo Global Management LLC with an all-cash offer that values Tribune around $46.50 per share. Whereas Tribune has ended its trading on Friday at $40.26.
Nexstar has arranged debts from different banks to finance them for this deal. Its market capitalization is of $3.8 billion only. The agreement between Nexstar and Tribune Media is expected to be announced by Monday. But Tribune and Apollo are declined from this statement whereas Nexstar and Sinclair are not giving any response about this deal.
Tribune has already ended up his deal with Sinclair in August and has filed a complaint stating that Sinclair has taken too much time to transfer the amount and are being very aggressive in its dealings with regulators.
Nexstar, based in Irving, Texas, operates and provides sales and other services to 174 television stations which are reaching nearly 39 percent of all U.S. television households. Whereas Tribune Media is based in Chicago, operates 42 local television stations reaching approximately 50 million homes. It also owns national entertainment cable network WGN America, a variety of digital applications and websites. It also has a stake in the Food Network. As per the experts, this Deal will be going to be in favor of Nexstar.
Source: Reuters reports