Nexstar's Tegna Merger Can Bring Some Synergies but Doesn't Change the Long-Term Secular Decline

We expect that industry headwinds faced by linear television (the traditional form of TV that is watched at scheduled times) and the continued transition of advertising to digital mediums will result in ongoing challenges for Nexstar Media Group that lead its business to decline. Though the deal is still subject to legal challenge, Nexstar acquired Tegna in March 2026. The consolidation should produce significant savings but does not change our outlook, as the deal increases reliance on linear television.