Federal Judge Halts Nexstar-Tegna TV Station Merger Amid Antitrust Concerns

SACRAMENTO, Calif. — A significant media merger has hit a roadblock as a federal judge intervened, halting the $6.2 billion agreement between Nexstar Media Group and Tegna. This decision comes as an antitrust lawsuit awaits resolution.

U.S. District Court Chief Judge Troy L. Nunley issued the ruling late Friday, indicating that the coalition of eight state attorneys general alongside DirecTV stands a strong chance of succeeding in their legal challenge against the merger.

The proposed deal, which was initially announced last year and received approval from the Federal Communications Commission (FCC), would have resulted in a media powerhouse controlling 265 television stations across 44 states and the District of Columbia. Most of these stations are local affiliates of major national networks including ABC, CBS, Fox, and NBC.

Previously, Judge Nunley had enacted an emergency order to block the merger for three weeks. On April 7, he listened to arguments regarding whether this temporary block should continue until the lawsuit from the attorneys general and DirecTV is resolved.

The attorneys general, all from the Democratic Party, along with DirecTV, argue that the merger could lead to increased consumer prices and a decline in local journalism. They assert that the deal violates federal laws aimed at preventing monopolistic practices.

In defense, Nexstar’s legal team pointed out that the merger had already been scrutinized and approved by both the FCC and the Department of Justice. They emphasized that the FCC's order requires Nexstar to enhance local journalism and programming rather than diminish it.

Approval from the FCC, under the Republican Trump administration, was necessary due to regulations limiting ownership of multiple local stations by a single entity. FCC Chairman Brendan Carr noted in March that Nexstar had agreed to divest six stations to comply with these rules.

In his temporary restraining order, Judge Nunley highlighted that if the merger proceeds, Nexstar would control two or even three of the “Big Four” local affiliates in 31 television markets. He warned that this concentration of power could force multichannel video programming distributors like DirecTV to acquiesce to Nexstar’s demands for increased broadcast fees, potentially leaving subscribers unable to access key programming such as Sunday NFL games.