Eight States and DirecTV Sue to Block Nexstar-Tegna Merger
Attorneys general from eight states, alongside satellite television provider DirecTV, have initiated legal action to block the proposed merger between local television giants Nexstar Media Group and rival Tegna. The lawsuits argue that the consolidation would lead to significantly higher prices for consumers and further stifle the already struggling local journalism sector.
The $6.2 Billion Deal and Its Scope
Nexstar announced in August its intention to acquire Tegna for a staggering $6.2 billion. If approved by the Trump administration, this merger would create a media behemoth owning 265 television stations across 40 states and the District of Columbia. The vast majority of these stations are local affiliates of major national networks, including ABC, CBS, Fox, and NBC.
The legal challenges were filed on Thursday in the U.S. District Court in Sacramento, California. The coalition of states includes California, Colorado, Connecticut, Illinois, New York, North Carolina, Oregon, and Virginia, all represented by Democratic attorneys general. DirecTV filed a separate, concurrent lawsuit in the same court.
Arguments Against the Merger
In their lawsuit, the state attorneys general contend that the merger would violate federal antitrust laws designed to prevent monopolistic practices. They also highlight that the deal would necessitate a change in Federal Communications Commission (FCC) rules, which currently limit the number of stations a single company can own. FCC Chairman Brendan Carr has previously advocated for relaxing these ownership restrictions.
DirecTV's lawsuit echoes these concerns, stating explicitly, "Nexstar's purpose in acquiring Tegna is to drive up the price it can extract from DirecTV and other distributors, which will force them to raise prices to their subscribers." This sentiment was reinforced by New York Attorney General Letitia James, who warned, "If this merger moves forward, cable prices will spike for consumers in New York and across the country."
Political Endorsement and Corporate Power
The merger received a notable endorsement in February from President Donald Trump, who took to social media to express his support. He stated that "we need more competition against THE ENEMY, the Fake News National TV Networks." This political backing contrasts sharply with the legal and consumer concerns raised by the states and DirecTV.
Nexstar has defended the deal, arguing that it would enable the combined entity to compete more effectively against wealthier legacy media corporations and Big Tech companies. However, critics point to Nexstar's history of consolidating newsrooms in markets where it owns multiple stations, a practice that could expand significantly post-merger. The lawsuit notes there are 31 markets nationwide where Nexstar and Tegna each currently own at least one station.
Impact on Local Journalism
Both lawsuits express profound concern for the future of local news. The attorneys general argue that reduced competition would harm journalistic quality and diversity. "We all benefit when local newsrooms compete to get stories," emphasized Attorney General James. This concern is amplified by a recent incident where Nexstar ordered its ABC stations to pull late-night host Jimmy Kimmel off the air following controversial comments, though he was reinstated after public outcry.
The state lawyers have indicated they are open to garnering support from other states, including those with Republican attorneys general, suggesting a bipartisan concern over the merger's implications. As of now, Nexstar has not issued an immediate response to requests for comment regarding the lawsuits.
