Exclusive: Hedge fund HG Vora wants Tegna to consider a sale or merger - sources

[Y2kTheNewOldies]

https://www.reuters.com/article/us-...nsider-a-sale-or-merger-sources-idUSKBN1ZK1WP

If this deal is true then stations like KXTV, KHOU, KING, KGW, WUSA, KUSA would be affected by the changes.

BOSTON (Reuters) - Another large investor in Tegna Inc (TGNA.N) wants the U.S. regional TV station operator to pursue a merger or sale, arguing a tie-up could be very valuable at a time the industry is facing a wave of consolidation, two people familiar with the matter said.

Hedge fund HG Vora Capital Management, which owns about 4% of Tegna’s stock, is the third investor to push for changes at Tegna. Standard General has laid the groundwork for a proxy contest and Donerail also wants changes to be made.

HG Vora, which oversees $5.3 billion in assets, could not be immediately reached for comment.

Standard General, which owns 9.7% of Tegna shares, last week said that it plans to nominate four directors to the company’s 11-member board, including Soohyung Kim, Standard General’s founder and portfolio manager.

Talks between Tegna and Standard General about board seats have faltered with the company saying publicly that it has “serious concerns (about Kim’s) prior business and board service.” Tegna said it will evaluate Standard General’s three other nominees.

HG Vora, run by Parag Vora, is likely to be supportive of Standard General’s board nominees, one of the people said.

 

[Y2kTheNewOldies]

https://www.allaccess.com/net-news/...t-another-investor-is-asking-tegna-to-sell-or

Even Tegna Radio division may be affected if deal is true.

 

[Y2kTheNewOldies]

https://finance.yahoo.com/news/tegna-investor-seek-four-board-013028039.html

Bloomberg) -- Tegna Inc.’s third-biggest shareholder nominated four directors to the broadcaster’s board after its push for the company to explore strategic alternatives, including a sale, was stonewalled.

Standard General LP, which owns about 9.7% of Tegna, unveiled its slate of directors Wednesday, confirming an earlier Bloomberg News report. Standard General has discussed its views with management but the company has stymied its push for board representation and a call to explore strategic alternatives, according to people familiar with the matter.

“Given Standard General’s substantial investment in Tegna, our expertise in the broadcasting industry, and our focus on driving value for all Tegna shareholders, we strongly believe that Tegna shareholders would benefit from having a representative of Standard General on the Tegna board,” Standard General Chief Executive Officer Soo Kim wrote in a letter to the company’s investors Wednesday.

Here is the lead in to Tegna's merger rumors.

 

[MarcB]

Sheesh. That means if Tegna does get sold FOX 61/CW 20 in Hartford will under new ownership again. Tegna just got them from Tribune since Nexstar (who bought most of Tribune's stations) already owned 2 stations in the market - 8 and 59.

 

[Y2kTheNewOldies]

Sheesh. That means if Tegna does get sold FOX 61/CW 20 in Hartford will under new ownership again. Tegna just got them from Tribune since Nexstar (who bought most of Tribune's stations) already owned 2 stations in the market - 8 and 59.

Question here is who are the candidates to get Tegna if the rumors are true given that Tegna just got some Divested Nexstar stations as a result of the Tribune merger though. I know HG Vora and Standard Media has control of the Tegna Board though.

 

[Megatron]

Which will mean that every TV in West Michigan has been sold at least once in the last 8 years and Sinclair will be the oldest TV station owner at 8 years owning WWMT since March of 2012.

 

[PTBoardOp94]

With the current state of the world, it's hard to see how TEGNA could be sold in its entirety, without some major asset divestures.

With Sinclair there would be a conflict in 23 markets, including Seattle and a long list of smaller markets. Some of these might be resolvable with sidecar companies but in at least half of those markets one company already owns a duopoly. Tegna is only in 54 markets, so this seems like a bad fit.

I don't think Nexstar will be buying anything, except maybe a single station here or there, as they are close to the 39% national limit.

Scripps would have conflicts in Phoenix, Denver, San Diego, Boise, Twin Falls, ID, Corpus Christi, and probably a couple of others -- in these markets both Tegna and Scripps own stations, and one already has a duopoly.

Even a merger with the much smaller group of former Cox properties would require divesture in six markets.

 

[Will_H_69_9]

With the current state of the world, it's hard to see how TEGNA could be sold in its entirety, without some major asset divestures.

With Sinclair there would be a conflict in 23 markets, including Seattle and a long list of smaller markets. Some of these might be resolvable with sidecar companies but in at least half of those markets one company already owns a duopoly. Tegna is only in 54 markets, so this seems like a bad fit.

I don't think Nexstar will be buying anything, except maybe a single station here or there, as they are close to the 39% national limit.

Scripps would have conflicts in Phoenix, Denver, San Diego, Boise, Twin Falls, ID, Corpus Christi, and probably a couple of others -- in these markets both Tegna and Scripps own stations, and one already has a duopoly.

Even a merger with the much smaller group of former Cox properties would require divesture in six markets.

the only one of those companies to merge that may impact DFW TV would be Nexstar, which just aqquired KDAF recently. Sinclair would love to get WFAA to united it with the yet to be rebranded FSN Southwest (which they aqquired last year from Disney after they aqquired "old Fox" thus splitting it up from KDFI/KDFW which went to "New Fox" ownership.), i wouldn't be surprised if Disney tries to convince TEGNA to sell of WFAA to them to united them under the Disney/ABC umbrella as they are the only big 4 station that isn't owned by their affiliated network.