TV Broadcaster Tegna Sells to Largest Shareholder in $5.4B Deal

In an all-cash deal, TV broadcaster Tegna has sold to one of the largest shareholders of the company.

Tegna, which is one of the largest local news broadcast companies in the U.S., was sold to Standard General, in a $5.4 billion deal that was backed by private equity giant Apollo Global Management.

The companies made the announcement on Tuesday and said the deal has an equity value of about $5.4 billion and an enterprise value of about $8.6 billion.

Deb McDermott, who currently serves as CEO of Standard Media, a subsidiary of Standard General, will become CEO.

Soo Kim, founding partner of Standard General, will serve as chairman of the company’s new board.

Byron Allen, who owns The Weather Channel and other networks, reportedly raised $10 billion in preferred equity and debt in a bid for Tegna himself.

Steven Cahall, an analyst with Wells Fargo Securities, said the deal should be a win-win for Apollo and Standard General. He said broadcast assets have great free cash flows, which make them attractive to both strategic and financial buyers.

Apollo, meanwhile, was believed to be looking for a bigger station group as a partner for some of its legacy broadcast assets, Cahall said. “This deal seems to give everyone what they want.”

The deal is expected to close in the second half of 2022 following regulatory approval.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.