US broadcast giant TEGNA sold in a mega-deal to private equity firms

Tegna, an American publicly traded broadcast, digital media and marketing services company, has reportedly sold itself to a couple of private equity firms in a multibillion-dollar deal.

Apollo Global Management and Standard General are reportedly teaming up for the deal, which will see them buy the firm for $24 per share, said the firm.

Private equity giants shattered out a rival offer from Allen Media Group, collaborating with Ares Management on the bid. Under the agreement, the firm will become the nation's largest minority-owned, woman-led broadcast group.

According to the firms, the transaction has an equity value of around $5.4 billion and an enterprise value of around $8.6 billion, including the statement of debt. The price tag signifies a premium of 39% approximately to the companies' closing share prices on September 14, the last full trading day before speculations of media about a potential sale that emerged first.

Following the closure of the transaction, anticipated during the 2nd half of 2022, Deb McDermott will be becoming the CEO.

An associate of Standard General will be substantially holding all of its voting, common equity in the new entity that is obtaining Tegna, with Cox Media Group and funds managed by Apollo Global Management members to hold securities in the new entity, which will be non-voting and non-attributable and with other investors also holding non-voting interests.

Banks headed by RBC Capital Markets will provide the debt financing.

After closing the deal, Tegna stations in Austin (KVUE), Dallas (WFAA and KMPX) and Houston (KHOU and KTBU) are anticipated to be acquired by Cox Media Group. In addition, Tegna's extravagant advertising platform Premion is expected to function as a stand-alone business majorly owned by Cox Media Group and Standard General, said the company.

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