Summary
- Nexstar Media will merge Tribune Media into its operations.
- The merger will make Nexstar the largest broadcasting company, with more than 200 stations reaching 39% of U.S. television households.
- Investors could buy Nexstar for its future growth potential, but I think Tribune is a hold as its shares are trading close to its merger cash offer.
Nexstar will Merge Tribune into its Operations
Nexstar Media Group, Inc. (NASDAQ:NXST) will merge Tribune Media Company (NYSE:TRCO) into Nexstar’s operations. Nexstar will acquire all of Tribune’s outstanding shares for $46.50 per share in a cash transaction.
Management for Nexstar stated in their press release:
Nexstar has long viewed the acquisition of Tribune Media as a strategically, financially and operationally compelling opportunity that brings immediate value to shareholders of both companies.
Management for Tribune stated in their press release,
We're extremely pleased with today's vote. It confirms that our stockholders clearly recognize the significant value we expect to be delivered by this merger.
The shareholders of Tribune voted on March 12, 2019 and approved the merger which is now subject to regulatory approval. Nexstar states that the transaction is expected to close in the third quarter of 2019.
