US States Seek Court Order to Halt $3.5bn Nexstar-Tegna Merger
Eight US states have formally requested a federal judge to issue a temporary restraining order aimed at stopping the $3.5 billion merger between Nexstar Media Group and Tegna. The states argue that this deal, if allowed to proceed, would establish the largest broadcast station group in the United States, potentially leading to job losses, increased consumer cable bills, and a significant reduction in media diversity nationwide.
Legal Challenge and Merger Approval
On Friday, the states—California, Colorado, Illinois, Oregon, New York, North Carolina, Connecticut, and Virginia—filed their request with US District Judge Troy Nunley in Sacramento, California. This legal move comes just one day after the Federal Communications Commission (FCC) and the US Department of Justice granted their approval for the merger. Notably, Nexstar and Tegna announced they had closed the transaction merely two hours after receiving this regulatory clearance, despite the pending lawsuit.
The states contend that without immediate judicial intervention, the companies could rapidly integrate their operations, making it difficult to reverse the merger's effects. They emphasize that the deal would concentrate broadcast programming control among fewer entities, jeopardize local employment, and enable the merged entity to impose higher fees on pay TV providers. Additionally, they warn that separate news operations in markets with multiple stations might be eliminated, further diminishing media competition.
Regulatory Context and Political Influence
The FCC's approval included a waiver of a longstanding rule that previously limited broadcast television station owners from reaching more than 39% of US television audience households. This waiver allows the merged Nexstar-Tegna entity to expand its presence to cover approximately 80% of US TV households, a significant increase that critics argue could stifle competition.
Political dimensions have also surfaced, with former President Donald Trump expressing support for the merger. Trump has reportedly pressured FCC Chair Brendan Carr to revoke licenses of major networks like NBC and ABC, alleging they hold excessive power. Carr, in turn, has advocated for empowering local affiliates, such as those owned by Tegna and Nexstar, to preempt programming from national networks. Critics accuse Carr of undermining free speech rights, while he maintains his actions are aimed at decentralizing media control.
Impact on Broadcasting Landscape
Nexstar currently stands as the largest local television broadcasting group in the US, operating over 200 stations across 116 markets and reaching an estimated 220 million people. Tegna owns 64 television stations in 51 media markets. The merger would consolidate these holdings, creating a dominant force in the broadcast industry. The states' lawsuit highlights concerns that this consolidation could lead to reduced news coverage, higher costs for consumers, and fewer employment opportunities in local media sectors.
Judge Nunley has indicated he will review the case based on court documents, with a decision pending that could either halt or allow the merger to proceed. The outcome will have profound implications for media regulation, antitrust enforcement, and the future of television broadcasting in the United States.
