Tysons, Virginia-based Tegna, whose 64 television stations include WUSA Channel 9 in D.C., will be acquired by private investors for $5.4 billion.
The total value of the takeover by New York-based Standard General LP, including assumption of Tegna debt, is $8.6 billion.
The price is a 39% premium to Tegna’s market value on Sept. 14, when reports of a potential sale began circulating.
“We are pleased to have reached this agreement with Standard General, which follows a thorough review of acquisition proposals received by the company. After evaluating this opportunity against Tegna’s stand-alone prospects and other strategic alternatives, our board concluded that this transaction maximizes value for Tegna shareholders,” said Howard Elias, Tegna chairman.
Standard Media Group chief executive Deborah McDermott will become Tegna’s chief executive. Standard General founding partner Soo Kim will serve as chairman of the board.
The acquisition needs Tegna shareholder approval. It is expected to close in the second half of 2022.
After closing, Tegna stations in Austin, Dallas and Houston are expected to be acquired by Cox Media Group.
Tegna was part of USA Today owner Gannett, until it split into two separate companies in 2015, one for newspapers and other media, and one for broadcasting, as well as its TV stations’ digital properties. Tegna also owns the True Crime Network.