Court Halts Major Merger Between TV Giants Nexstar and Tegna
A U.S. district judge has temporarily blocked the proposed $6.2 billion merger between Nexstar Media Group and Tegna. This deal aimed to form the largest operator of local television stations in the United States. The ruling, issued by Judge Troy L. Nunley in California late Friday, responded to concerns about potential violations of federal antitrust laws.
Legal Backing for the Halt
DirecTV initiated the action through a lawsuit that contends the merger could harm consumers and reduce competition. Eight state attorneys general, including California’s Rob Bonta, filed a separate lawsuit echoing these concerns.
In his ruling, Judge Nunley stated that the merger could significantly increase television service costs for millions of Americans and jeopardize local newsrooms across the nation. He also emphasized that the merger might substantially diminish competition in numerous local markets.
Temporary Restraining Order and Hearing
Judge Nunley issued a temporary restraining order that is effective for 14 days. He has scheduled a hearing for April 7 to further discuss the concerns surrounding the merger.
Regulatory Approvals and Controversy
Despite the legal challenges, both the Federal Communications Commission (FCC) and the Department of Justice approved the merger earlier this month. In a noteworthy decision, the FCC waived a rule that prevents any one company from owning television stations that together reach more than 39% of U.S. households. Nexstar and Tegna’s combined coverage would surpass 60% of households.
- Judge: Troy L. Nunley
- Merger Value: $6.2 billion
- Nexstar Stations: 201 stations in 116 television markets
- Tegna Stations: 64 full-power broadcast stations
FCC and Political Reactions
FCC Chairman Brendan Carr, appointed by former President Donald Trump, argued that waiving the rule was within the agency’s legal powers. However, the decision faced criticism from Anna M. Gomez, the only Democratic member of the FCC. She condemned the lack of transparency and due process surrounding the approval.
Senator Ted Cruz, who chairs the Senate Commerce Committee, also voiced his concerns, suggesting that a full commission vote should have been necessary.
Nexstar’s CEO Perry Sook has defended the merger as vital for supporting strong local journalism in the communities served by both companies. Currently, the legal status of the merger remains uncertain as the court proceedings unfold.
