TEGNA Inc. (TGNA): Business Model Canvas [Dec-2025 Updated]

You're looking at TEGNA Inc. right in the middle of a massive strategic pivot: managing a pending $6.2 billion acquisition by Nexstar Media Group while doubling down on local journalism and digital expansion. Honestly, when you map out their Business Model Canvas, you see a company balancing the legacy cash flow-like their Q3 2025 Distribution Revenue of $358 million-against aggressive cost-cutting and a clear push into connected TV advertising via Premion. If you want the precise breakdown of how they plan to fund this transition, from their 64 station portfolio to their key partnerships with major networks, you need to see the nine building blocks detailed below.

TEGNA Inc. (TGNA) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep TEGNA Inc. operating while the Nexstar Media Group acquisition moves through regulatory channels. These partnerships are the lifeblood, especially as the company navigates a tough advertising market and focuses on closing the deal.

Major broadcast networks (NBC, CBS, ABC, FOX) for content affiliation

TEGNA Inc.'s value is heavily tied to its content affiliation agreements, which provide the programming backbone for its local stations. As of the latest available data, TEGNA Inc. operates 64 television stations across 51 U.S. markets, reaching over 100 million people monthly.

The distribution of these affiliations across the major networks is a key resource:

• NBC Affiliates: 22 stations.
• CBS Affiliates: 15 stations.
• ABC Affiliates: 13 stations.
• FOX Affiliates: 6 stations.

The company is recognized as the largest group owner of NBC-affiliated stations. Furthermore, TEGNA Inc. reached a comprehensive multi-year agreement with Fox Corporation in Q2 2025 to renew station affiliations for six of its markets, covering approximately 7% of its household reach.

Multichannel Video Programming Distributors (MVPDs) like cable and satellite companies

These retransmission consent agreements are critical for revenue stability, as they mandate fees from distributors to carry TEGNA Inc.'s signals. Distribution revenue was reported as flat at $380 million in Q1 2025, supported by distributor renewals and rate increases. However, by Q3 2025, this revenue slipped 1% to $358 million due to ongoing subscriber declines, even with contractual rate increases in place.

The renewal schedule shows near-term risk and opportunity. Roughly 10% of traditional MVPD subscribers renewed at the end of Q1 2025. Looking ahead, approximately 30% of traditional subscribers are up for renewal at the end of 2026.

Professional sports leagues (NBA, NHL, MLB) for local team rights

Securing local team rights is a strategy to drive audience engagement and bolster Advertising and Marketing Services (AMS) revenue, especially when national political advertising is cyclical. TEGNA Inc. has secured local team rights across the NBA, WNBA, NHL, and MLB. For example, the company extended its partnership in the Denver market to broadcast 20 Denver Nuggets games and 20 Colorado Avalanche games.

The financial impact is visible in the AMS revenue figures, which saw growth from local sports rights offsetting some declines elsewhere. For context, Q3 2025 AMS revenue was $273 million, down 12% year-over-year, but local sports advertising growth was noted as a partial offset.

Nexstar Media Group, the acquirer in the pending $6.2 billion transaction

The definitive agreement with Nexstar Media Group is the most significant partnership, effectively setting the near-term financial outcome for TEGNA Inc. shareholders. Nexstar agreed to acquire TEGNA Inc. for $22.00 per share in a cash transaction valued at $6.2 billion, inclusive of TEGNA Inc.'s net debt and estimated transaction fees.

Shareholder approval was secured on November 18, 2025. The transaction is expected to close between July 1, 2026, and December 31, 2026. Upon closing, the combined entity is projected to cover 80% of U.S. television households. Nexstar expects to generate annual net synergies of approximately $300 million from this combination in 2025.

Third-party advertisers and advertising agencies for national and local ad buys

This partnership category directly impacts the Advertising and Marketing Services (AMS) revenue stream. The performance here is volatile, as seen in the Q3 2025 results where AMS revenue fell 12% to $273 million. Political advertising, a key component, saw a massive drop of 92% to just $10 million in Q3 2025 compared to the prior year's election cycle.

The company's overall financial outlook, despite these headwinds, is supported by its cash flow guidance, which is a reflection of its ability to manage these advertising relationships and costs. TEGNA Inc. reaffirmed its two-year Adjusted Free Cash Flow guidance (2024-2025) between $900 million and $1.1 billion.

Here's a snapshot of the revenue components that rely on these advertising and distribution partners for Q3 2025:

Finance: draft 13-week cash view by Friday.

TEGNA Inc. (TGNA) - Canvas Business Model: Key Activities

You're looking at the core actions TEGNA Inc. takes to run its business, especially as it navigates the final stages of its 2025 operational plan and the pending acquisition by Nexstar Media Group, Inc. The numbers reflect a company focused on efficiency while maintaining local journalism quality.

Producing and broadcasting trusted local news and original programming.

TEGNA Inc. maintains a massive local footprint, operating 68 television stations across 54 U.S. markets, reaching over 100 million people monthly. This commitment to local content is validated by external recognition; for example, in 2025, TEGNA stations received Six National Edward R. Murrow Awards. A key activity involves content expansion, with a major local news initiative adding more than 100 hours of new daily local programming across over 50 markets, expected to have a full rollout by fall 2025. Furthermore, securing local sports rights is a focus, with agreements in place with teams across the NBA, WNBA, NHL, MLB, and NFL.

Negotiating and securing retransmission consent agreements with distributors.

This activity secures the right to carry content on cable and satellite systems, which is a foundational revenue source. The financial results show the pressure points here. Distribution revenue was $380 million in the first quarter of 2025, dipping to $370 million in the second quarter, and then to $358 million in the third quarter of 2025, representing a 1% decrease year-over-year for Q3. This decline is directly tied to subscriber losses, which are being offset by contractual rate increases. A significant portion of the negotiation cycle was front-loaded; approximately 45% of traditional subscribers were up for renewal in calendar year 2025, with about 10% of MVPD subscribers renewed in Q1 2025. By the end of Q2 2025, about 35% of traditional subscribers remained up for renewal at year-end 2025.

Selling advertising inventory across linear TV and digital platforms.

Advertising revenue streams are experiencing cyclical and macroeconomic pressure. Advertising and Marketing Services (AMS) revenue was $286 million in Q1 2025, a 3% decrease year-over-year, but it fell further to $273 million in Q3 2025, a 12% drop year-over-year, impacted by the absence of the Summer Olympic games. The digital side shows a counter-trend; owned and operated digital products achieved strong double-digit year-over-year growth for the third consecutive quarter in Q2 2025, and digital advertising revenue grew year-over-year in Q1 2025. Still, the overall picture is one of contraction in the near term, with total company revenue for Q3 2025 decreasing 19% year-over-year to $651 million.

Implementing core operational cost-cutting initiatives, targeting $90 million to $100 million in annualized savings by end of 2025.

This is a major operational focus. The target for annualized core non-programming savings by the end of 2025 is set between $90 million and $100 million. Management reported achieving 60% of this goal by the end of Q1 2025, accelerating to 80% achieved by the end of Q2 2025. The results are visible in the expense lines. GAAP operating expenses decreased 3% to $559 million in Q3 2025 due to these initiatives, primarily from compensation and outside services reductions. Non-GAAP operating expenses decreased 4% to $544 million in Q3 2025, exceeding the guidance range. In Q2 2025, all non-programming costs declined 6% year-over-year (non-GAAP).

Accelerating the technology roadmap, including AI deployment, for newsroom efficiency.

TEGNA Inc. is actively deploying proprietary AI and automation tools across news, sales, and operations to streamline processes and reduce waste. This technology deployment is cited as a key driver for the cost-cutting success. The company is experimenting with proprietary AI systems specifically for newsrooms to enhance efficiency. This focus on technology is part of a broader strategy to 'Work Smarter,' aiming to keep GAAP operating expenses in check even while investing in new content.

• Proprietary AI systems being tested for newsroom use.
• Automation applied to manual processes across news, sales, and operations.
• Goal is to cut waste and focus resources on growth areas.

TEGNA Inc. (TGNA) - Canvas Business Model: Key Resources

The Key Resources for TEGNA Inc. (TGNA) are centered on its established broadcast footprint and growing digital advertising technology.

Portfolio of 64 television stations in 51 U.S. markets. This physical asset base is the foundation of local reach.

• The station portfolio reaches more than 100 million people on an average monthly basis across all platforms.
• TEGNA Inc. (TGNA) is the largest group owner of NBC-affiliated stations.
• TEGNA Inc. (TGNA) is the fourth-largest group owner of ABC affiliates.

Broadcast spectrum licenses and physical transmission infrastructure. This includes the necessary FCC authorizations and physical assets to transmit signals across its markets.

Exclusive local sports and network content rights. These rights secure the programming that drives viewership to the owned and operated stations.

• Altitude Sports extended its partnership with TEGNA stations, including 9NEWS, for a second consecutive year, providing 20 Nuggets Games and 20 Avalanche Games free to Denver fans.

Digital advertising platform, Premion, for connected TV (CTV) ad placement. This resource extends the local inventory into the streaming ecosystem.

• Premion, the TEGNA-owned CTV/OTT advertising platform, has the scale to reach streaming TV viewers in all 210 U.S. DMAs.
• Premion\'s direct sales force reaches OTT viewers in over 78% of U.S. television households.
• Premion launched a scaled live programmatic advertising solution in June 2025.

Strong balance sheet with $757 million in cash and equivalents as of Q2 2025. This financial strength supports operations and strategic moves.

Here's a quick look at the financial position as of the end of the second quarter of 2025:

The company redeemed $250 million par value of senior notes due March 15, 2026, on July 2, 2025, leaving $300 million in par value outstanding.

Finance: draft 13-week cash view by Friday.

TEGNA Inc. (TGNA) - Canvas Business Model: Value Propositions

You're looking at the core value TEGNA Inc. (TGNA) offers its customers, which are primarily viewers and advertisers. It's all about local connection backed by network scale.

Trusted, award-winning local journalism and community service is the foundation. While I can't list award counts without a specific search, the commitment is demonstrated by the scale of local investment.

The reach is broad, covering a massive audience base across platforms. TEGNA reaches more than 100 million people monthly across the web, mobile apps, streaming, and linear television.

This reach is supported by the distribution of essential network content. Most of TEGNA's news-producing stations are affiliated with major broadcast networks, specifically ABC, CBS, and NBC.

The company is actively expanding its local content footprint to capture more audience attention, especially in the morning hours. This expansion delivers on the promise of more local coverage where it was previously unavailable.

• Stations in 35 markets began actively delivering live, local programming from 7 to 9 a.m. in the summer of 2025.
• 50+ markets are expected to have this live, local programming by the fall of 2025.
• This effort delivers over 100 hours of daily breaking news, weather, and traffic.
• Initial testing in some markets showed viewership increases of nearly 50 percent month-over-month.

For advertisers, TEGNA Inc. (TGNA) provides targeted solutions across both traditional and digital channels. The financial results from the third quarter of 2025 show the revenue breakdown from these core distribution and advertising propositions.

The total company revenue for the third quarter ended September 30, 2025, was $651 million. The AMS revenue stream, which directly reflects the targeted advertising value proposition, decreased 12% year-over-year in Q3 2025. Still, growth from local sports rights and local digital growth partially offset this decline.

The value proposition for advertisers is the ability to reach audiences across linear TV and connected TV streaming, as roughly half the audience has left the traditional linear television bundle.

TEGNA Inc. (TGNA) - Canvas Business Model: Customer Relationships

You're looking at how TEGNA Inc. manages its connections with the entities that pay for its content and advertising inventory as of late 2025. It's a mix of highly automated, high-volume contracts and very personal, high-touch sales efforts.

Automated, contractual relationships with MVPDs for distribution fees.

The relationship with Multichannel Video Programming Distributors (MVPDs)-cable, satellite, and virtual providers-is primarily driven by multi-year, automated contracts for retransmission consent fees. This revenue stream provides a stable, albeit slightly eroding, foundation. For instance, in the third quarter of 2025, Distribution Revenue was reported at $358 million, representing a slight slip of 1% year-over-year, as subscriber declines were mostly offset by contractual rate increases. To be fair, this erosion is constant; in Q2 2025, the revenue was $370 million, flat compared to the prior year. The contractual nature means the relationship is less about daily interaction and more about managing renewal cycles; in fact, 45% of traditional subscribers were up for renewal in 2025. TEGNA Inc. serves as a major content provider, reaching approximately 39% of U.S. television households through its portfolio of stations.

High-touch, long-term affiliation agreements with major networks.

The core content supply comes via high-touch, long-term affiliation agreements with the 'Big 4' networks: NBC, CBS, ABC, and FOX. These agreements dictate programming carriage and revenue sharing, where TEGNA Inc. pays monetary compensation and provides commercial announcement time in exchange for programming. The terms are critical, as non-renewal would prevent carrying network programming, which is a major audience draw. While some prior renewals have passed, the current structure shows long-term commitments, such as the CBS agreement extending through late 2028 and the NBC agreement through early 2027. The cost of these network affiliations represents a significant portion of TEGNA Inc.'s operating expenses.

Here's a quick look at the revenue streams that these customer relationships directly support, based on the third quarter of 2025 results:

Dedicated sales teams and account management for large national advertisers.

For national advertising dollars, the relationship shifts to a dedicated, high-touch sales model managed by the Advertising and Marketing Services (AMS) segment. This is where the company sells inventory across its markets for national campaigns. The macroeconomic environment in late 2025 was challenging for this group; AMS Revenue in Q3 2025 fell 12% to $273 million. This segment is sensitive to national spending trends, with softness noted in categories like automotive. Account management here focuses on delivering value against the backdrop of a cyclical dip in political advertising, which generated only $10 million in Q3 2025, down 92% from the prior year's election cycle.

Self-service and managed service options for digital advertisers on Premion.

For digital advertising, the relationship is managed through Premion, TEGNA Inc.'s premium Connected TV/Over-The-Top (CTV/OTT) solution, which was launched in 2016. Premion offers advertisers flexibility, supporting both self-service and managed service models through its platform. The platform was recently enhanced with expanded capabilities, including a purpose-built local CTV platform and a Demand Side Platform (DSP) to drive campaign optimization. This allows for programmatic buying, which is essentially an automated, self-service approach at scale. The direct sales force for Premion reaches OTT viewers in over 78% of U.S. television households. To be clear, while digital revenue is a focus, Premion's total revenues were reported as flat recently, partly due to the exit of a major reseller partner.

Direct, community-focused engagement with local audiences through news and events.

The most direct relationship is with the local audience, which underpins the value proposition for local advertisers. TEGNA Inc. fosters this through its core product: local news, weather, and community-focused content. A concrete example of deepening this local connection is securing exclusive local sports rights. For instance, TEGNA stations extended partnerships to broadcast 20 Denver Nuggets games and 20 Colorado Avalanche games in the Denver market. This type of local content investment is designed to drive audience loyalty, which in turn supports the AMS revenue base.

Finance: draft 13-week cash view by Friday.

TEGNA Inc. (TGNA) - Canvas Business Model: Channels

You're looking at how TEGNA Inc. gets its content and advertising revenue into the hands of viewers; it's a multi-pronged approach across traditional and digital airwaves.

The core remains the Over-the-Air (OTA) broadcast via its local TV stations. TEGNA Inc. operates 64 television stations across 51 U.S. markets. This linear reach is substantial, as approximately 15 to 20% of American households depend on over-the-air TV in part or completely for access to television. To boost this, TEGNA Inc. expanded its live, local newscasts to over 50+ markets, delivering more than 100 hours of daily breaking news, weather, and traffic to over 100 million viewers across its properties monthly.

For Multichannel Video Programming Distributors (MVPDs) like cable and satellite, the channel is distribution fees. Distribution revenue, which makes up the largest portion of TEGNA Inc.'s business, was $358.45 million in the third quarter ended September 30, 2025. This represented a 1% decrease year-over-year, as subscriber declines partially offset contractual rate increases. You should note the renewal cycle: approximately 35% of traditional subscribers are up for renewal at year-end 2025, following a 10% renewal of MVPD subscribers in the first quarter of 2025.

The Digital platforms-station websites, mobile apps, and connected TV (CTV) apps-are showing growth. TEGNA Inc.'s Owned and Operated Digital Products achieved strong double-digit year-over-year growth for the third consecutive quarter in Q2 2025. This is the delivery mechanism for the expanded local news programming, aiming to reach that audience of over 100 million people monthly.

Premion, the proprietary CTV/OTT advertising platform, is a key part of the Advertising and Marketing Services (AMS) revenue stream, but it hit a snag. In Q3 2025, AMS revenue fell 12% to $273.38 million, partly due to lower Premion-related revenue following the exit of a major exclusive reseller partner. Gray Media's shift away from a non-advertising agreement for Premion reduced AMS revenue growth by approximately 200 basis points in Q2 2025, with that negative impact continuing for three more quarters.

Here's a quick look at how the core revenue lines performed in the first three quarters of 2025. This shows you the immediate impact of the cyclical political advertising drop and the distribution/AMS trends.

Social media and other third-party digital distribution platforms are integrated into the overall digital strategy, helping to drive traffic to the owned-and-operated digital products and the OTA broadcasts. You see this in the push for local sports rights, like the extension to broadcast 20 Denver Nuggets and 20 Colorado Avalanche games in the Denver market, which helps drive audience across all channels.

TEGNA Inc. (TGNA) - Canvas Business Model: Customer Segments

You're looking at the core groups that fund TEGNA Inc.'s operations as of late 2025, right in the middle of a major transition with the announced acquisition. Honestly, the customer base is clearly segmented by who pays for content access versus who pays for content exposure.

Cable, satellite, and virtual MVPD (vMVPD) operators paying retransmission fees are a critical segment, as these fees provide a relatively stable, recurring revenue base, even as subscriber counts shift. Distribution revenue was reported as flat in Q2 2025 at $370,000,000, following $380 million in Q1 2025. You should note the renewal cycle pressure: approximately 35% of traditional subscribers are up for renewal at the end of 2025, following a 10% renewal of MVPD subscribers in Q1 2025. This group is paying for the right to carry TEGNA-owned local channels to their subscribers.

Local and national businesses purchasing advertising and marketing services form the core of the Advertising & Marketing Services (AMS) revenue stream. This segment is sensitive to the macro environment; Q2 2025 AMS revenue was $288 million, down 4% year over year. For context, the full-year 2024 AMS revenue was $1,227 million, which itself was down 5% from the prior year due to national market softness. Local accounts are currently outweighing national softness, but caution remains a theme here.

Political campaigns and issue advocacy groups provide cyclical, high-margin revenue that significantly boosts non-election years. The cyclical nature is starkly visible in the 2025 numbers compared to 2024. For instance, Q1 2025 political ad revenue hit only $3.62 million, an 87% drop from the $27.83 million seen in Q1 2024. This revenue drop is a primary driver for the overall revenue decline; Q3 2025 total company revenue was down 19% year over year to $651 million, in line with guidance anticipating this cyclical trough.

The mass market local audiences are the end-users whose viewership underpins the value proposition to the first two segments. TEGNA reaches more than 100 million people monthly across the web, mobile apps, connected TVs, and linear television. This reach is delivered through 64 television stations operating in 51 U.S. markets. The company is focused on growing digital revenue by deepening engagement with this audience, with owned and operated digital products achieving strong double-digit year-over-year growth for the third consecutive quarter in Q2 2025.

Finally, institutional investors and shareholders are a key segment focused on the pending transaction and balance sheet health. The announced acquisition by Nexstar Media Group is valued at $6.2 billion, including net debt and fees, with a purchase price of $22.00 per share, representing a 31% premium over the August 8, 2025, average stock price. Shareholders are focused on the deal closing, which is expected in the second half of 2026, and the company's current financial footing; the net leverage ratio finished Q3 2025 at 2.9x, with cash and cash equivalents at $233 million at the end of that quarter.

Here's a quick look at how the revenue segments stacked up in the first three quarters of 2025, showing the impact of political revenue cycling out:

The company is actively managing costs for this segment of stakeholders, having achieved 80% of its $90 million to $100 million annualized core non-programming savings target as of Q2 2025. Finance: draft 13-week cash view by Friday.

TEGNA Inc. (TGNA) - Canvas Business Model: Cost Structure

You're looking at the core outflows for TEGNA Inc. (TGNA) as of late 2025, right in the middle of the proposed acquisition by Nexstar Media Group. The cost structure is heavily influenced by content acquisition and operational footprint, though aggressive cost management is clearly underway.

The total GAAP operating expenses for the third quarter ended September 30, 2025, were reported at $559 million, representing a 3% decrease year-over-year. Non-GAAP operating expenses were slightly lower at $544 million, a 4% decrease. This reduction is directly tied to specific internal efforts.

The focus on defintely aggressive cost-cutting is evident in the expense line items that make up these totals. The primary area for these reductions was compensation and outside services expense.

The company's cost base includes the significant fixed and variable costs associated with maintaining its broadcast presence. This covers the operating expenses for its 64 stations and the necessary digital infrastructure to support content delivery and advertising sales.

Financing costs remain a notable, though managed, expense. For the third quarter of 2025, the reported interest expense was $39 million. This figure reflected a decrease of 8% from the prior year, largely due to the early redemption of the 4.75% senior notes due March 15, 2026, with a final $300 million called on September 22, 2025.

Here's a quick look at some key financial metrics from Q3 2025 that frame the cost environment:

Programming expenses, which would include network affiliation fees and costs associated with local sports rights, are a major component of the overall operating expenses, though the search results do not provide a specific dollar breakdown for this line item separate from the aggregate GAAP/Non-GAAP operating expenses. However, the revenue side noted growth from local sports rights, implying ongoing investment in this area.

Regarding capital expenditures, the company's investment focus is on future-proofing the business. While a specific Q3 2025 CapEx number is not detailed in the provided results, the strategic direction points toward investments in technology, AI, and content production.

The cost structure is being actively managed through several levers:

• Aggressive cost-cutting in compensation and outside services.
• Debt management reflected in the reduction of interest expense.
• Focus on operational efficiency across the 64 stations.
• Strategic capital deployment into technology and AI initiatives.

The company suspended share repurchases as it moves toward the expected closing of the Nexstar acquisition in the second half of 2026.

TEGNA Inc. (TGNA) - Canvas Business Model: Revenue Streams

You're looking at the core ways TEGNA Inc. brings in cash as of late 2025, right in the middle of that Nexstar acquisition process. Honestly, the revenue picture for Q3 2025 shows the classic media company split: carriage fees versus ad sales, with a heavy dose of cyclicality.

The most stable piece of the pie is the money TEGNA Inc. gets just for carrying its content. Distribution Revenue, which is what you pay in retransmission fees, came in at $358 million for the third quarter of 2025. That was down just 1% year-over-year, mostly because subscriber numbers keep ticking down, but contractual rate increases helped cushion the blow.

The advertising side is where things get more volatile. Advertising and Marketing Services (AMS) Revenue for Q3 2025 was $273 million, marking a 12% drop. This dip wasn't a surprise; management pointed to ongoing macroeconomic headwinds and the absence of the Summer Olympic games, which definitely hits the national ad calendar.

Here's the quick math on how those two main buckets stack up for Q3 2025, based on the reported figures:

Now, let's talk about political advertising revenue, which is defintely the wild card. Since Q3 2025 was an odd year, you'd expect this to be low, and it was. Political advertising revenue plunged by 92% to just $9.88 million in the quarter. That sharp drop was a primary driver for the overall revenue decline, which is the typical cyclical pattern you see when you compare an election year to a non-election year.

The digital segment is where TEGNA Inc. is trying to find consistent growth, though it's currently mixed in with the AMS results. You need to look closely at the components that make up that AMS number:

• Digital advertising revenue from owned and operated properties showed growth from local digital growth, helping partially offset other declines.
• Premion, the company's connected TV advertising platform, saw lower Premion-related revenue following the exit of a major exclusive reseller partner.
• The AMS revenue decrease also factored in lower revenue from the absence of the Summer Olympic games.

Other revenue, which comes from things like production and third-party programming sales, isn't explicitly detailed in the top-line breakdown, but it's wrapped into the total. Remember, the company is focused on completing the Nexstar deal, so near-term guidance is suspended, meaning these Q3 2025 numbers are the most concrete look you'll get for the immediate future.