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Merger Agreement with TEGNA On August 18, 2025, we entered into a definitive Merger Agreement to acquire the outstanding equity of TEGNA. TEGNA owns and operates 64 television stations and two radio stations in 51 DMAs in the U.S.
17.15% operating margin is respectable but not wide. ROIC at 8.81%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue declined 8.5% YoY. Margins deteriorated 6.3pp alongside, both lines moving the wrong way.
Free cash flow declined 33% versus the prior year, cash generation momentum has weakened. Net debt of $6.34B represents 8.5x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$5.11B
▼ -8.5% YoY
Net Income (TTM)
$165M
▼ -84.9% YoY
Op. Margin
17.49%
▼ -6.3pp YoY
ROIC
8.49%
▼ -1.9pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$708M
▼ -32.8% YoY
Op. Cash Flow (TTM)
$843M
▼ -28.7% YoY
Net Debt
$12.11B
Cash & Equiv.
$379M
5Y CAGR: +1.9%
5Y CAGR: -6.5%
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