BY Fraser Tennant
In a move that takes the broadcaster private, Tegna Inc. is to be acquired by investment firm Standard General in an all-cash transaction valued at $5.4bn.
Under the terms of the definitive agreement, Standard General will acquire Tegna for $24 per share in cash. The transaction has been unanimously approved by Tegna’s board of directors.
Upon completion, Tegna will become a private company and its shares will no longer be traded on the New York Stock Exchange.
“This transaction is the next step in Tegna’s evolution and recognises the value of our portfolio of leading broadcast assets and innovative digital brands,” said Dave Lougee, president and chief executive of Tegna. “We are deeply gratified that Tegan’s new owners value and embrace our purpose to serve the greater good of our communities.”
With 64 television stations in 51 US markets, Tegna is the largest owner of top four network affiliates in the top 25 markets among independent station groups. The company also owns multicast networks True Crime Network, Twist and Quest.
“As long-term investors in the television broadcasting industry, we have a deep admiration for Tegna and the stations it operates,” said Soo Kim, founding partner of Standard General. “We believe Tegna has a strong foundation and exciting prospects for continued growth as a result of the stewardship of the board and the current management team. We look forward to building on the company’s strong foundation and leveraging its deep industry experience to drive further growth.”
Deb McDermott, previously chief executive of Standard Media Group, will become chief executive and Mr Kim will serve as chairman of a new board upon the close of the transaction.
The transaction is subject to approval by Tegna shareholders, regulatory approvals and other customary closing conditions, and is expected to close in the second half of 2022.
Ms McDermott concluded: “Tegna’s stations have earned excellent reputations as leading local content providers and our digital and content assets are a key part of its future in an evolving media landscape.”
News: Standard General to take U.S. broadcaster Tegna private in $5.4 billion deal