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Nexstar Media Group, Inc. (NASDAQ:NXST) announced Friday it has received a request for additional information from the U.S. Department of Justice regarding its proposed merger with TEGNA Inc. The request, known as a "Second Request," was received by all parties to the merger agreement on Thursday. Nexstar, currently valued at $5.93 billion and trading at a P/E ratio of 10.02, has maintained strong financial health with an "GREAT" overall score according to InvestingPro data.
According to a statement based on a press release and SEC filing, the Second Request extends the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. The waiting period will now last until 30 days after Nexstar and TEGNA have substantially complied with the DOJ’s request for information, unless it is terminated earlier or extended by agreement.
Nexstar, through its wholly owned subsidiary Teton Merger Sub, Inc., entered into a merger agreement with TEGNA on August 18, 2025. Under the terms of the agreement, Teton Merger Sub will merge with and into TEGNA, with TEGNA continuing as the surviving corporation and becoming a wholly owned subsidiary of Nexstar.
The companies stated they will continue to cooperate with the DOJ in its review of the proposed merger. Completion of the transaction remains subject to the expiration or termination of the waiting period under the HSR Act and satisfaction or waiver of other closing conditions specified in the merger agreement. Nexstar enters this review process from a position of financial strength, with liquid assets exceeding short-term obligations and a substantial 21% free cash flow yield.
Nexstar and TEGNA expect the merger to be completed by the second half of 2026, according to the SEC filing. The announcement did not include further details on the DOJ review or the specific information requested. Investors should note that Nexstar has raised its dividend for 13 consecutive years and currently offers a 3.94% dividend yield, demonstrating its commitment to shareholder returns.
This news is based on a press release statement and a filing with the Securities and Exchange Commission. Nexstar is scheduled to report earnings in 6 days on November 6, 2025. InvestingPro identifies multiple additional strengths for the company, including management’s aggressive share buybacks and strong long-term returns. For comprehensive analysis of Nexstar and 1,400+ other US equities, consider accessing the detailed Pro Research Report available on InvestingPro.
In other recent news, Nexstar Media Group has declared a quarterly cash dividend of $1.86 per share, payable on November 26, 2025, to shareholders of record as of November 12, 2025. This announcement comes amidst significant developments involving the company’s programming and acquisitions. Nexstar has been in discussions with The Walt Disney Company and decided to return "Jimmy Kimmel Live!" to its affiliated ABC stations, although the show had previously been preempted due to comments made by Kimmel.
On the acquisition front, Nexstar announced an all-cash bid for TEGNA, priced at $22 per share, which has been approved by both companies’ boards. This acquisition is set to create a combined entity covering 80% of U.S. households across 132 designated market areas. Following this announcement, both Benchmark and Guggenheim have raised their price targets for Nexstar to $250, maintaining a Buy rating on the stock. Guggenheim noted the acquisition’s potential for over 40% free cash flow accretion, describing it as highly accretive.
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