TEGNA Inc. (TGNA) Skyrockets to All-Time High on Merger Rumors

We recently published Wall Street Shockers: 10 Stocks on Fire. TEGNA Inc. (NYSE:TGNA) is one of the best-performing stocks on Monday.

TEGNA Inc. soared to a new record high on Monday, as investor sentiment was fueled by reports that it was set to be acquired by Nexstar Media.

At intra-day trading, the company rallied by as high as 30.89 percent to touch $20.04, before paring gains to end the day just up by 29.78 percent at $19.87 apiece.

According to a report by Reuters on Friday, citing people privy to the matter, Nexstar was in advanced talks with TEGNA Inc. (NYSE:TGNA) to acquire the latter’s outstanding shares and that a deal is expected to finalize soon.

A potential deal would market a significant step in the ongoing consolidation in the US industry amid the shifting consumer habits driven by the increasing adoption of streaming.

In an earnings call also on Friday, TEGNA Inc. (NYSE:TGNA) CEO Mike Steib underscored a recent court ruling striking down the “Top Four” rule of the Federal Communications Commission, which prohibits ownership of two top-rated stations in the same industry.

“We believe deregulation is coming and will create significant opportunities. We are open to being a buyer or seller, depending on the opportunities, and are disciplined in our approach,” Steib was quoted as saying.

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