Deadlineยท2025-11-06 18:22Core Viewpoint - Nexstar Media Group is progressing towards closing its $6.2 billion acquisition of Tegna by the second half of 2026, which would significantly reshape the local broadcast sector in the U.S. [1][2] Financial Performance - Nexstar reported third-quarter revenue of $1.2 billion, a decrease of 12% from the same period last year, with earnings per share at $2.14, down from $5.63, falling short of analysts' expectations of $4.51 [3][4]. Acquisition Progress - The company is optimistic about the acquisition, with Tegna filing its proxy statement and a shareholder vote scheduled for November 18. Nexstar has begun engaging with regulatory agencies and submitted initial paperwork [5]. - The U.S. Court of Appeals for the Eighth Circuit's ruling last summer, which vacated the "top four" ownership ban, has contributed to Nexstar's optimism regarding the acquisition [5]. Regulatory Environment - The FCC plans to review the current ownership cap in 2026, but it remains uncertain if the agency can lift restrictions without Congressional intervention. The outcome of the mid-term elections could impact the Nexstar-Tegna deal [6]. Industry Outlook - Nexstar's CEO emphasized the need for strong companies in the industry and expressed confidence that Nexstar would lead the future of local broadcasting through financial strength and innovation [3][7]. - The company has identified nine markets where it could introduce additional local news programming, enhancing its content offerings [7]. CW Network Performance - The CW network, in which Nexstar acquired a controlling stake in 2022, has reduced its losses and anticipates breaking even by mid-2026, with sports programming now constituting 40% of its content [8].