Exclusive: Nexstar clinches $4.1 billion understanding to acquire Tribune Media – sources

(Reuters) – Nexstar Media Group Inc has reached an agreement to acquire Tribune Media Co for about $4.1 billion, a understanding that would make it a largest internal U.S. TV hire operator, people informed with a matter pronounced on Sunday.

Nexstar’s partnership would come only 3 months after Tribune’s $3.9 billion understanding to sell itself to Sinclair Broadcast Group Inc, now a largest U.S. internal TV hire operator, collapsed over regulatory hurdles.

Nexstar outbid private equity organisation Apollo Global Management LLC with an all-cash offer that values Tribune during around $46.50 per share, 3 sources said. Tribune shares finished trade on Friday during $40.26.

Nexstar, that has a marketplace capitalization of $3.8 billion, has lined adult banks to yield debt financing for a deal, a sources added.

The agreement between Nexstar and Tribune Media could be announced by Monday, according to a sources.

The sources asked not to be identified given a matter is confidential. Tribune and Apollo declined to comment, while Nexstar and Sinclair did not immediately respond to requests for comment.

Tribune consummated a understanding with Sinclair in August, and filed a lawsuit arguing that a latter mishandled efforts to get a transaction authorized by holding too prolonged and being too assertive in a exchange with regulators.

However, given afterwards a promote media zone has seen a flurry of partnership talks, amid expectations that a U.S. Federal Communications Commission (FCC) could relax restrictions on how many stations broadcasters can operate. The FCC has nonetheless to opinion on a matter.

Based in Irving, Texas, Nexstar owns, operates and provides sales and other services to 174 radio stations reaching scarcely 39 percent of all U.S. radio households. Apollo also approached Nexstar this summer about appropriation it, though was rebuffed, Reuters formerly reported.

Based in Chicago, Tribune Media owns or operates 42 internal radio stations reaching approximately 50 million households. It also owns inhabitant party wire network WGN America, whose strech is some-more than 77 million households, and a accumulation of digital applications and websites autocratic 54 million monthly singular visitors online, according to a website. It also has a interest in a Food Network.

Tribune emerged from failure in late 2012 and finished a spinoff of a journal resources in 2014.

More TV hire deals are in a works. Privately hold Cox Enterprises Inc announced in Jul that it was exploring vital options, including a intensity sale, for a 14 promote TV stations it owns in cities such as Atlanta, Boston and Memphis. [nFWN1VC0HO]

Sinclair is now also posterior a possess apart deal, carrying partnered with private equity organisation CVC Capital Partners Ltd to bid for a informal sports networks that Twenty-First Century Fox Inc is offered following a understanding to combine many of a resources with Walt Disney Co, sources have formerly said.

When it came to a prior Tribune Media deal, FCC pronounced Sinclair did not “fully divulge facts” relating to a designed sale of 3 stations, including pre-existing business relations a association had with impending buyers.

Sinclair has a politically regressive strain in a news broadcasts of many of a stations, heading to U.S. President Donald Trump to impugn a FCC over a fall of a partnership of Tribune Media in a summer.

“So unhappy and astray that a FCC wouldn’t approve a Sinclair Broadcast partnership with Tribune. This would have been a good and most indispensable Conservative voice for and of a People,” Trump wrote on Twitter final July.

Reporting by Carl O’Donnell and Liana B. Baker in New York; Editing by Lisa Shumaker

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