Why TEGNA Shares Are Soaring 28% Friday Morning

Shares of TEGNA (NYSE: TGNA), a media company with 62 television stations in 51 markets reaching roughly 39% of television households nationwide, soared 28% Friday morning -- before giving back some gains -- after Gray Television (NYSE: GTN) made an offer to acquire the company.

Gray Television reportedly made a $8.5 billion offer, including debt, to acquire TEGNA, per a Reuters report. Gray Television offered $20 per share in cash and stock for TEGNA, and the move would add even more debt to the company's pile -- it's reported a plan exists to pay down the debt if the deal closes. The move makes sense for Gray Television, as the company operates in 93 television markets covering roughly 24% of U.S. television households, but generally it operates in smaller markets while TEGNA is more focused on larger markets. The combination would make a complimentary and favorable fit.

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Source Fool.com