FCC Approves Nexstar’s $6.2B Merger with Tegna
The Federal Communications Commission (FCC) has approved Nexstar’s $6.2 billion acquisition of Tegna, marking a significant shift in the landscape of local television. This merger will create the largest operator of local television stations in the United States.
FCC Decision on Nexstar-Tegna Merger
On Thursday, FCC Chairman Brendan Carr announced the approval, stating that the agency waived a regulation that limits a single company’s reach to 39% of U.S. households. The merger will allow Nexstar to cover over 60% of households nationwide.
“Waiving that rule aligns with the FCC’s commitment to promoting competition, localism, and diversity in media,” Carr explained.
Legal Challenges to the Merger
The announcement from the FCC followed a lawsuit filed by a coalition of attorneys general from eight states, including California and New York. They argue the merger violates federal antitrust laws.
Nexstar has also received regulatory approval from the Department of Justice (DOJ), according to CEO Perry Sook, though the DOJ has not issued a comment regarding the merger.
Statements from Key Leaders
- Perry Sook (Nexstar CEO): He emphasized the merger’s importance for sustaining robust local journalism and stated that the combined companies would create a “stronger, more dynamic enterprise.”
- Brendan Carr (FCC Chairman): Expressed gratitude towards the Trump administration for supporting this transformative transaction.
- Anna M. Gomez (FCC Commissioner): Criticized the lack of transparency in the approval process, stating it was conducted without public accountability.
Background of the Companies
Before the merger, Nexstar operated 201 stations across 116 television markets, while Tegna managed 64 full-power broadcast television stations, in addition to radio operations. This merger signifies a substantial consolidation in the media sector, impacting local broadcasting dynamics.
Conditions for Approval
Carr mentioned that Nexstar agreed to “specific concrete conditions” for the merger, like divesting some stations and enhancing local programming and affordability measures. However, details of these commitments were not disclosed.
Regulatory Context
The FCC, tasked with regulating broadcast airwaves and telecommunications, typically has five commissioners, although it currently operates with two vacancies. Carr has been in his position since the beginning of President Donald Trump’s second term.
This acquisition of Tegna by Nexstar is pivotal in reshaping the media landscape, as massive companies seek to adapt in a fast-evolving marketplace.
