D.C. Memo: Nexstar CEO Sook − $6.2 Billion TEGNA Deal Avoids ‘Chatbot’ Journalism

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Deal: Nexstar is acquiring TEGNA’s 64 broadcast TV stations in 51 markets in a deal valued at $6.2 billion (cash and debt), creating an industry giant with 265 stations reaching 80% of U.S. TV households. On a call with Wall Street analysts yesterday, Nexstar CEO Perry Sook framed the $22 per share transaction as a critical step that will give TV stations committed to local journalism a shot at parrying the competitive challenge from unregulated, trillion-dollar Big Tech companies. “We don't think anyone wants their news delivered by a chatbot, and that's where we're headed if we can't become a bigger company, a stronger company to attempt to compete with Big Tech, at least on a level playing field in the United States,” Sook said. With appropriate hedging, Sook said he felt confident the deal would make it past the FCC and the Justice Department largely unscathed. After the merger, Nexstar will reach 60% of TV households nationally if factoring in the FCC’s 50% UHF discount. That puts the deal above the FCC’s 39% national cap, which is under review by FCC Chairman Brendan Carr.