Big Broadcaster Tegna Sold To Standard General, Apollo Global
Big publicly traded broadcaster Tegna, which has been in play for months, agreed to sell itself to Standard General and a group of funds including Apollo Global Management, the owner of Cox Media Group.
It’s a a cash deal for $24 a share. That’s $5.4 billion, or $8.6 billion including the assumption of debt.
The price reps a 39% premium to its close on Sept. 14, 2021 – an unusually long lookback that the company said reflects the stock’s last full day of trading before speculation began to pop about a potential sale, with Bryon Allen and other private equity firms among potential suitors. It also reps a premium of 11% to Tegna’s all-time high closing since separating from the Gannett publishing business in 2015.
The deal was unanimously approved by the Tegna board. Shareholders must also vote and the deal is expected to close in the second half of 2022. Tegna, currently listed on the NYSE, will go private.
“As long-term investors in the television broadcasting industry, we have a deep admiration for TEGNA and the stations it operates,” said Soo Kim, founding partner of Standard General, who will become the new chairman at close.
At close, Deb McDermott, CEO of Standard Media will be CEO, replacing Dave Lougee. McDermott currently serves as CEO of Standard Media and has more than 20 years of experience leading broadcast groups, including as COO of Media General and CEO of Young Broadcasting.
Soo Kim, founding partner of Standard General, will become the new chairman.
Following the close of the transaction, Cox will acquire Tegna stations in Austin (KVUE), Dallas (WFAA and KMPX) and Houston (KHOU and KTBU) from Standard General.
Tegna’s OTT advertising company Premion is expected to operate as a standalone business majority owned by Cox Media Group and Standard General.
An affiliate of Standard General will hold substantially all of the voting, common equity in the new entity that is acquiring Tenga, with CMG and funds managed by affiliates of Apollo Global Management to hold securities in the new entity that will be non-voting and non-attributable and with other investors holding non-voting interests.
A syndicate of banks led by RBC Capital Markets will provide debt financing.
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