Federal Judge Halts Nexstar-Tegna Merger Amid Antitrust Concerns
A federal judge has intervened, halting a $6.2 billion merger between Nexstar Media Group and Tegna, pending the resolution of an antitrust lawsuit. This ruling came from U.S. District Court Chief Judge Troy L. Nunley in Sacramento, California, who issued the decision late Friday.
Judge Nunley determined that eight state attorneys general, alongside DirecTV, have a strong likelihood of succeeding in their legal challenge against the merger. The deal, which was initially announced last year and received approval from the Federal Communications Commission (FCC), would consolidate ownership of 265 television stations across 44 states and the District of Columbia, primarily local affiliates of major networks like ABC, CBS, Fox, and NBC.
Previously, Nunley had enacted an emergency order that temporarily blocked the merger for three weeks. On April 7, he heard arguments regarding whether this block should be extended until the lawsuit from the attorneys general and DirecTV is resolved.
The coalition of attorneys general, all Democrats, along with DirecTV, argue that the merger would lead to increased consumer prices and a decline in local journalism quality, violating federal laws aimed at preventing monopolistic practices.
"Consolidating hundreds of local TV stations under one corporate owner would mean higher prices and lower quality programming for consumers," stated New York Attorney General Letitia James following the ruling. "Nexstar's merger with Tegna illegally eliminates competition, and today we won a critical victory in our effort to enforce the law and stop this merger from moving forward."
In defense, Nexstar's legal team pointed out that the deal had already been scrutinized and cleared by both the FCC and the Justice Department. They emphasized that the FCC's order mandates an expansion of local journalism and programming rather than a reduction.
Nexstar announced plans to appeal the ruling made on Friday. "This transaction closed more than four weeks ago following receipt of all required regulatory approvals from the Federal Communications Commission and the U.S. Department of Justice," Nexstar stated. "Nexstar Media Group now owns TEGNA and has taken steps consistent with the Court order that has been in effect."
The merger required approval from the FCC during the Trump administration, as it involved waiving regulations that limit how many local stations one entity can own. FCC Chairman Brendan Carr noted in March that Nexstar had agreed to divest six stations as part of the deal.
In his emergency temporary restraining order, Judge Nunley highlighted that the merger would position Nexstar as the owner of two or even three affiliates of the "Big Four" networks in 31 local television markets. He warned that this consolidation could compel multichannel video programming distributors like DirecTV to comply with Nexstar's demands for increased broadcast fees or risk leaving subscribers unable to access popular programming such as Sunday NFL games.
