Nexstar Media Group is buying rival Tegna for $6.2 billion in cash, creating a local TV broadcasting giant as the industry bets on regulatory changes to unleash consolidation.

The acquisition prices Tegna shares at $22 each — representing a 31% premium over the company’s average trading price before news of negotiations surfaced.

Nexstar, whose subsidiaries include NewsNation, TV Food Network and a constellation of local affiliates in several large markets, beat out rival Sinclair, which was offering between $25 and $30 per share, significantly above Nexstar’s winning bid. 3

But Sinclair is worth just $1 billion compared to Nexstar’s $6.3 billion market cap, making it the industry David trying to beat Goliath.

Making matters worse, Sinclair is drowning in over $4 billion of debt

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