Eight States, Including California, Sue to Block $6.2B Nexstar-Tegna Merger
Eight states, led by California and New York, have initiated legal action to obstruct Nexstar’s $6.2 billion acquisition of Tegna. They argue that the merger breaches federal antitrust laws.
State Lawsuit Against Nexstar-Tegna Merger
California’s Attorney General, Rob Bonta, emphasized the risks of media consolidation. “Fewer voices and less competition mean communities lose vital local journalism,” he stated.
Joining Bonta in this legal fight are the attorneys general from:
- Colorado
- Illinois
- Oregon
- North Carolina
- Connecticut
- Virginia
Nexstar and Tegna have yet to comment on the states’ lawsuit. The merger, if approved, would allow Nexstar to reach nearly 60% of U.S. households, exceeding the current federal limit of 39%.
Industry Concerns and Federal Regulations
Adding to the complexities, the Federal Communications Commission (FCC) Chair, Brendan Carr, has expressed support for the merger. However, the agency has not announced plans to vote on changing the national ownership cap. Their review of the merger remains under scrutiny, particularly amid growing concerns regarding concentration in the media landscape.
Recently, other state attorneys general have also actively engaged in antitrust issues, including a notable mistrial motion regarding the merger of Live Nation and Ticketmaster.
Impact on Local News and Competition
The lawsuit has been lodged in the U.S. District Court for the Eastern District of California. It claims that the merger violates Section 7 of the Clayton Antitrust Act, which seeks to prevent acquisitions that substantially lessen competition.
Concerns are particularly pronounced in the Sacramento and San Diego media markets, where Bonta’s office argues that competition would diminish. In Buffalo, New York, Attorney General Letitia James highlighted similar worries regarding marketing dynamics.
Nexstar and Tegna’s Operations
Nexstar operates over 200 stations across 116 markets and owns the broadcast network The CW, as well as NewsNation. Tegna, with 64 stations in 51 markets, adds significant assets to the proposed merge.
“This illegal merger threatens local news and may increase costs for consumers,” James said. She added that keeping independent local news options accessible is vital for New Yorkers.
Response from FCC Commissioner
Anna M. Gomez, the only Democrat on the FCC panel, reacted to the lawsuit. She urged for transparency in the FCC’s review process, warning against an expedited approval without thorough public scrutiny.
The legal challenge against the Nexstar-Tegna merger reflects broader concerns over media ownership and its implications for local journalism and consumer prices. The evolving landscape of media consolidation continues to be a hot topic among policymakers and legal experts.
