DALLAS — WFAA is expected to become part of Cox Media Group following the sale of its parent company TEGNA to Standard General L.P.
The move was announced by company officials Tuesday morning.
The sale of TEGNA to Standard will have an equity value of approximately $5.4 billion and an enterprise value of approximately $8.6 billion, including the assumption of debt, according to a TEGNA press release.
TEGNA will be acquired by the Standard General affiliate for $24 per share in cash, a premium of approximately 39 percent to TEGNA's unaffected closing share price on Sept. 14, 2021, according to the press release.
Following the close of TEGNA's sale to Standard, WFAA, along with Estrella KMPX, will join fellow Texas stations KVUE (Austin) and KHOU (Houston) in the move to Cox Media Group, where these three entities will maintain the strong sister station relationship they have had for 50 years.
After closing, TEGNA's OTT advertising platform Premion is also expected to operate as a standalone business majority owned by Cox Media Group and Standard General together. WFAA will continue to sell and service Premion advertising campaigns to local and national customers.
The sale to Standard was unanimously approved by the TEGNA Board. It is still pending approval of additional shareholders.
Upon completion of the transaction, TEGNA will no longer be traded on the New York Stock Exchange.
"We are pleased to have reached this agreement with Standard General, which follows a thorough review of acquisition proposals received by the company," said Howard D. Elias, Chairman of the TEGNA Board. “After evaluating this opportunity against TEGNA’s standalone prospects and other strategic alternatives, our Board concluded that this transaction maximizes value for TEGNA shareholders.”
Soo Kim, Founding Partner of Standard General, commented on the transaction: “As long-term investors in the television broadcasting industry, we have a deep admiration for TEGNA and the stations it operates and, in particular, for TEGNA’s talented employees and their commitment to serving their communities."
TEGNA CEO Dave Lougee, in an email to WFAA employees, said TEGNA "will continue to operate as we do today" while the transaction is pending.
"It is business as usual and it will remain as important as ever that we keep the same focus we have always had on delivering outstanding journalism and results," Lougee said.
