Apollo Kicking Tegna’s Tires?
• That’s the word from The Wall Street Journal, which reports that private equity firm Apollo Global Management LLC, which is in the process of finalizing a majority ownership stake in Cox Media Group, approached Tegna Inc. earlier this deal as Apollo looks to bulk up its ownership of television stations.
According to the WSJ story, Apollo first contacted Tegna in February, sending a letter to the Tegna board expressing interest in buying the company at a premium. Apollo said would also consider other options, such as merging its stations with Tegna, which has a market value of roughly $3 billion, or selling them to the company. Apollo says it has remained in regular contact with Tegna since then, despite so far being rebuffed.
Apollo envisions combining Tegna’s assets with those of Cox Media Group, in which it agreed to acquire a majority stake in February. Apollo also struck a deal earlier this year to acquire 20 stations owned by closely held Northwest Broadcasting Inc., which would be merged into the larger TV-station group. Together, the deals would quickly make Apollo one of the nation’s biggest owners of local TV stations. At last count, Tegna owns 49 TV stations and four radio stations — Adult Hits KFMB-FM (100.7) & Talk KFMB-AM/San Diego and Sports-Talk duo WBNS-FM & AM/Columbus, OH.
Meanwhile, hedge fund Standard General LP last Wednesday revealed in a filing that it had amassed a 9.2% stake in Tegna, making it the company’s third-largest shareholder. Tegna’s shares are up about 38% so far this year, and closed up roughly 10% last Friday after Journal reported on Apollo’s overtures.
