Apollo Global Management has approached broadcasting company Tegna about a deal as the private equity firm looks to bulk up its ownership of television stations, according to people familiar with the matter.
Apollo first contacted Tegna about a potential transaction at the beginning of the year, some of the people said. It sent a letter to the board in February, expressing interest in buying the company at a premium, and it has remained in regular contact despite so far being rebuffed, the people said. Apollo would also consider other options, such as merging its stations with Tegna or selling them to the company.
Tegna has a market value of roughly $3bn.
The broadcasting company said in a statement that its board of directors and management team are committed to creating value for all shareholders.
Tegna’s shares are up about 38% so far this year, including closing up roughly 10% Friday after The Wall Street Journal reported on the approach.
Apollo envisions combining Tegna’s assets with those of Cox Media Group, in which it agreed to acquire a majority stake in February, the people familiar with the matter said. Apollo also struck a deal earlier this year to acquire 20 stations owned by closely held Northwest Broadcasting, which would be merged into the larger TV-station group. Together, the deals would quickly make Apollo one of the nation’s biggest owners of local TV stations.
Apollo expects both transactions to close in September, according to people familiar with the matter.
Meanwhile, hedge fund Standard General on Wednesday revealed in a filing that it had amassed a 9.2% stake in Tegna, making it the company’s third-largest shareholder, according to FactSet. The filing was a form used for investments held by passive shareholders, who don’t intend to get involved in a company’s operations or strategy.
