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Two private equity firms are buying local TV giant company Tegna in a $5.4 billion deal.
Top line
Standard General and Apollo Global Management have partnered to acquire the company for $24 per share, an equity value of approximately $5.4 billion and an enterprise value of around $8.6 billion, according to the company.
Between the lines
The deal beats out a $10 billion bid from Byron Allen’s Allen Media Group, which was backed by 14 banks and 10 investors, including Ares Management Corp, Fortress Investment Group, Oaktree Capital Management and the family office of financier Michael Milken.
Standard General was already the company’s largest active shareholder, and the deal is expected to close in the second half of the year.
Tegna owns 64 stations in 51 markets, and the company said that following the close of the deal it will be the “nation’s largest minority-owned, woman-led broadcast group.”
Should the deal be approved, Deb McDermott, the current CEO of Standard Media, will become CEO of the company. Soo Kim, founding partner of Standard General, will be chairman.
Bottom line
After the close of the deal, Tegna stations in Austin and Houston will be acquired by Cox Media Group from Standard General. Apollo owns the Cox Media Group.
“As long-term investors in the television broadcasting industry, we have a deep admiration for Tegna and the stations it operates and, in particular, for Tegna’s talented employees and their commitment to serving their communities,” said Soo Kim in a statement. “We are excited to partner again with Deb McDermott, who previously spearheaded the broadcast group at Media General, where Standard General was a principal shareholder. We believe Tegna has a strong foundation and exciting prospects for continued growth as a result of the stewardship of the Board and the current management team. We look forward to building on the Company’s strong foundation and leveraging Deb’s deep industry experience to drive further growth.”
