Nexstar Media Group will sell 19 television stations to two buyers for a total of $1.32 billion in cash to facilitate its merger with Tribune Media, the company announced.
TEGNA Inc. (NASDAQ: TGNA) will acquire 11 stations in eight markets for $740 million and The E.W. Scripps Company (NASDAQ: SSP) will acquire eight stations in seven markets for $580 million.
Nexstar also remains engaged in active negotiations to divest two stations in Indianapolis, Indiana, per a company statement.
The sale is necessary for Nexstar (NASDAQ: NXST) to comply with Federal Communications Commission (FCC) rules surrounding local and national TV station ownership after agreeing to purchase Tribune Media three months ago for $4 billion, The Hill reported, and is subject to FCC and other regulatory approvals.
Irving-based Nexstar agreed on Dec. 3, 2018 to acquire all outstanding shares of Tribune Media. Nexstar said it intends to use the net proceeds from the station divestitures to fund the Tribune acquisition and to reduce debt.
BofA Merrill Lynch is acting as financial advisor and Kirkland & Ellis LLP and Wiley Rein LLP are acting as legal counsel to Nexstar Media in connection with the proposed divestitures.
