Key takeaways:
- The FCC approved Nexstar Media Group’s $6.2 billion acquisition of Tegna Inc., creating the largest local TV station operator in the U.S., despite lawsuits from eight states and DirecTV claiming the merger would harm competition and increase consumer prices.
- FCC Chairman Brendan Carr waived a rule limiting ownership reach to 39% of U.S. households, allowing the combined entity to reach 60%, with Nexstar agreeing to divest certain stations and enhance local programming as conditions of the deal.
- The merger received support from Nexstar’s CEO and regulatory agencies but faced criticism from Democratic officials and attorneys general concerned about reduced local news diversity, higher prices, and lack of transparency, with legal challenges ongoing.
The Federal Communications Commission (FCC) has approved Nexstar Media Group’s $6.2 billion acquisition of Tegna Inc., a merger that will create the largest local television station operator in the United States. The announcement came Thursday evening, shortly after a coalition of attorneys general from eight states and DirecTV filed lawsuits seeking to block the deal. The lawsuits argue that the merger would lead to higher prices for consumers and harm local journalism by reducing competition.
FCC Chairman Brendan Carr stated that the agency waived a longstanding rule that prohibits a single company from owning television stations reaching more than 39% of U.S. households. The combined Nexstar-Tegna entity is projected to reach at least 60% of households nationwide. Carr defended the waiver, saying it aligns with the FCC’s goals of promoting competition, localism, and diversity. He also noted that Nexstar agreed to conditions as part of the deal, including divesting certain stations and taking steps to enhance local programming and affordability, though specific details were not disclosed.
Nexstar CEO Perry Sook expressed gratitude for the regulatory approvals, including clearance from the Department of Justice, and emphasized the importance of the merger for sustaining strong local journalism. “This transaction is essential to sustaining strong local journalism in the communities we serve,” Sook said. He also credited deregulatory policies under the Trump administration for enabling the deal, which he said would help local broadcasters compete more effectively with Big Tech and legacy media companies.
However, the merger has faced criticism, particularly from Democratic officials. FCC Commissioner Anna M. Gomez, the agency’s sole Democrat, condemned the approval process as lacking transparency and public accountability. Gomez highlighted concerns that the merger would create a “broadcast behemoth” exceeding ownership limits and potentially harm local news competition, especially in markets where both companies currently own stations. The attorneys general filing the lawsuits echoed these concerns, warning that the merger could drive up cable prices and reduce the diversity of local news sources. The legal challenges are pending in U.S. District Court in Sacramento, California, with the possibility of additional states joining the effort to block the merger.
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