TEGNA Inc. Monday announced the company has entered into a definitive agreement with Cooper Media to acquire leading 24/7 multicast networks Justice Network and Quest.
According to a news release, TEGNA will pay approximately $77 million in cash for the approximately 85 percent of Justice Network and Quest that it does not currently own, valuing the networks at $91 million.
The transaction is expected to be accretive to EPS within the first 12 months and immediately accretive to free cash flow.
The acquisition provides TEGNA with two leading multicast television networks that reach more than 87 million U.S. television homes. Justice Network and Quest each offer unique ad-supported programming and are among the fastest-growing and top entertainment multicast networks in the U.S.
- Justice Network, which launched in 2015, is focused on the popular category of true-crime, mystery and investigation.
- Quest, which launched last year, features science, history, engineering and daring adventure-reality series. It is the only broadly-distributed factual-entertainment multicast network of its kind.
“Consumer viewing habits are shifting toward over-the-air consumption supplemented by inexpensive over-the-top services,” said Dave Lougee, president and CEO, TEGNA. “Justice and Quest allow us to fully capitalize on the growth in over-the-air television audiences, which has increased by more than 48 percent over the past eight years.”
“It has been an honor to work with TEGNA to build Justice Network and Quest from the ground up, while informing and entertaining the growing over-the-air audience,” said Lonnie Cooper, chairman of Cooper Holdings. “The timing is right for Cooper Holdings to focus on its core agency businesses, while cheering on the networks’ continued success as part of the TEGNA family.”