Local TV giant TEGNA is selling itself to a pair of private equity firms in a deal that values the station owner at $8.6 billion.
“The transaction has an equity value of approximately $5.4 billion and an enterprise value of approximately $8.6 billion, including the assumption of debt,” the companies said on Tuesday.
Standard General and Apollo Global Management are teaming up for the deal, which will see them buy the company for $24 per share. The private equity giants beat out a rival offer from Byron Allen’s Allen Media Group, which had partnered with Ares Management on the bid.
TEGNA owns 64 local TV stations in 51 markets, and is the largest independent owner of NBC affiliates. The company was formed in 2015 when Gannett split itself in two, spinning out its TV station business as TEGNA while retaining its legacy newspaper business.
Both Standard General and Apollo are no strangers to the local TV business. Standard General previously led Young Broadcasting out of bankruptcy, leading to the company acquiring a controlling stake in Media General. Media General sold to Nexstar in 2018.
Apollo, meanwhile, owns the TV stations that had been operated by Cox Media Group, having acquired them in 2019. The company also acquired a $760 million stake in Dune producer Legendary Entertainment earlier this year.
Apollo’s existing ownership of TV stations could put the deal for TEGNA under closer scrutiny from the federal government.