Nexstar Pursues Tegna as Gray Media Adds 10 Stations in $171 Million Deal

Gray Media Group Inc. has agreed to buy 10 local television stations from Byron Allen’s Allen Media Group for $171 million in cash. The portfolio, made up of ABC, NBC, CBS and Fox affiliates, will extend Gray’s footprint into the Columbus–Tupelo, Terre Haute and West Lafayette markets and create new duopolies in seven other cities. The companies expect the transaction to close in the fourth quarter, subject to approval by the Federal Communications Commission. Separately, people familiar with the matter said Nexstar Media Group Inc.—the largest owner of U.S. local TV stations—is in advanced negotiations to acquire rival Tegna Inc. Nexstar owns or partners with more than 200 stations nationwide, while Tegna operates 64. Reports of the talks sent Tegna’s shares more than 30% higher in after-hours trading on Friday. The back-to-back moves signal renewed consolidation among mid-sized broadcasters seeking greater scale as advertising, retransmission fees and programming costs squeeze the traditional television business. Any agreement between Nexstar and Tegna, like Gray’s planned purchase, would require regulatory clearance, putting the FCC’s scrutiny of local-media concentration in the spotlight.