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TEGNA recieves two multi-billion dollar acquisition offers

PTBoardOp94

PTBoardOp94

Today two acquisition offers regarding TEGNA were published in the business press.

Gray offered to buy TEGNA for $8.5 billion, including assumption of debts, as reported by Reuters:
https://www.cnbc.com/2020/03/06/reu...point-5-bln-bid-to-acquire-tegna-sources.html

Meanwhile, the Wall Street Journal reports that TEGNA received an offer of $4.4 billion, all-cash, for the company from Apollo Global Management, the private equity firm who took over Cox's broadcast properties in 2019.
https://www.wsj.com/articles/apollo-made-another-takeover-approach-to-tegna-11583529674

This evening, TEGNA's largest shareholder, Standard General, which had been pushing an M&A move, issued a statement requesting the board pursue due diligence of both offers.
 
Mine was first...but yours clarifies the Apollo offer better
 
TheBigA said:
It's funny how I keep reading that radio is so consolidated, and no one ever talks that way about TV.
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We do! Right here on radiodiscussions when the Sinclair/Tribune deal was then a huge deal back then or the Gray/Raycom Deal was then a huge deal or the Nexstar/Tribune deal.
 
TheBigA said:
It's funny how I keep reading that radio is so consolidated, and no one ever talks that way about TV.
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Broadcast TV has always been consolidated with an oligopoly of three, then four, broadcast networks. It's not like the programming strategy of Nexstar today is that much different than Corinthian (which owned KHOU-TV, WISH-TV, and four other stations in the early 80s before merging with Belo).
 
TheBigA said:
Using that logic, it's not like iHeart's strategy is any different from NBC or CBS in the 1930s.
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Correct. The difference is that there was a "golden age" of radio in the mid-50s through the 80s when the radio networks were weak to non-existent and local programming was strong. There was never such a time in television for Joe Boxer to pine for.
 
PTBoardOp94 said:
Correct. The difference is that there was a "golden age" of radio in the mid-50s through the 80s when the radio networks were weak to non-existent and local programming was strong. There was never such a time in television for Joe Boxer to pine for.
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Except that while networks were weak, syndicated formats were very strong, and almost half of the radio stations in this country used some form of automated 24/7 format from companies like Bonneville, Century 21, or Schulke.
 
TheBigA said:
It's funny how I keep reading that radio is so consolidated, and no one ever talks that way about TV.
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ANother part is that in recent years we credit Youtube, Dailymotion, Vimeo, Netflix , Amazon Prime TV, Twitch, Peertube and LBRY for making TV less consolidated by making TV go through the internet instead of OTA and Cable though. This in turn gives the public more choices though on the TV side.
 
If Gray purchase TEGNA which tv stations have to divest? If Apollo Global Management purchase TEGNA which tv station would they have to divest?
 
As it stands now Tegna owns WATN ABC 24 and WLMT CW 30 in Memphis. Gray owns WMC NBC 5 and Apollo/Cox owns WHBQ Fox 13. So if either of them buys Tegna they will probably have to sell off some stations.
 
No TV stations would have to be sold if Gray or Apollo buy TEGNA as neither own TV stations in West Michigan unlike Sinclair trying to buy Tribune or Nexstar when they bought Tribune last fall and had to sell WXMI Fox17. If Gray buys WZZM would add another TV station in Michigan as they own NBC station in Lansing an ABC station in Flint and an NBC station in South Bend WNDU.
 
I wonder if Disney is interested in 1 TEGNA owned station, which is WFAA in Dallas as Dallas is i think one of the biggest TV markets to not have a Disney/ABC O&O while "New Fox" has ownership of KDFW & KDFI, NBCUniversal/Comcast owns KXAS & KXTX and ViacomCBS owns KTVT & KTXA. if who ever buys TEGNA, i think WFAA should be sold to Disney anyway. if LA, Chicago and New York City can have the big 4 owned and operated by the networks, why not let DFW have the same.
 
I wonder if the stock market crash will affect any potential deals. Disney stock has lost almost a third of its value, from a high of $150 down to a 52-week low of $104. I expect the scare will affect advertising as well.
 
TheBigA said:
I wonder if the stock market crash will affect any potential deals. Disney stock has lost almost a third of its value, from a high of $150 down to a 52-week low of $104. I expect the scare will affect advertising as well.
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As well as Disney's other businesses of cruises, theme parks and movies.

Because Gray's deal was stock-and-cash, the value of that offer is probably substantially lower today than it was 48 hours ago. Gray's stock fell 12.5% today along with most other broadcasters.

TEGNA stock was actually up 5% today, so apparently Wall Street still thinks a deal is possible. There were only 70 issues on the NYSE today that gained, and TEGNA was one of them.
 
https://deadline.com/2020/03/byron-allen-bid-broadcaster-tegna-1202880413/

Byron Allen is now named as a candidate to get Tegna


Media entrepreneur Byron Allen has made an all-cash bid for Tegna and is said to be one of three potential buyers circling the Tysons, Va.-based broadcaster, according to a source familiar with the situation.

Allen’s Allen Media Group offered $20 a share, or about $8.5 billion, the source said. It is going up against Gray Television, which last week made a offer, also for $20 a share but in a combination of cash and stock.

Private equity firm Apollo Global Management, which recently acquired stations from Cox, also made a bid for $20 a share, said a source familiar with the situation.
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