Judge Blocks Nexstar-Tegna Merger Pending Antitrust Lawsuit Outcome

A federal judge has halted the $6.2 billion merger between Nexstar Media Group and Tegna, two major local television companies, until an ongoing antitrust lawsuit is resolved. U.S. District Court Chief Judge Troy L. Nunley in Sacramento, California, issued the ruling late Friday, siding with eight state attorneys general and DirecTV, who argue the merger would harm consumers and local journalism.

The merger, announced last year and approved by the Federal Communications Commission (FCC), would create a media company owning 265 television stations across 44 states and the District of Columbia. Most of these stations are local affiliates of the “Big Four” national networks: ABC, CBS, Fox, and NBC. However, the attorneys general, all Democrats, and DirecTV contend the deal violates federal antitrust laws by reducing competition, potentially leading to higher prices and diminished programming quality.

Judge Nunley noted that the merger would give Nexstar ownership of two or three major network affiliates in 31 local markets. This consolidation could allow Nexstar to demand higher retransmission fees from multichannel video programming distributors like DirecTV, which could translate into increased costs for consumers. The judge also highlighted Nexstar’s history of consolidating local news operations in markets where it owns multiple stations, which could reduce viewers’ options for local news sources.

“Consolidating hundreds of local TV stations under one corporate owner would mean higher prices and lower quality programming for consumers,” said New York Attorney General Letitia James. She called the ruling a “critical victory” and pledged to continue fighting to ensure fair competition among local TV stations nationwide.

Nexstar’s legal team argued that the merger had already undergone review and clearance by both the FCC and the Department of Justice (DOJ). They emphasized that the FCC’s approval included commitments to expand local journalism and programming. Nexstar also stated it would appeal the ruling, noting that the transaction closed over four weeks ago following all required regulatory approvals.

The merger required a waiver from the FCC, under the Trump administration, of rules limiting the number of local stations one company can own. FCC Chairman Brendan Carr noted in March that Nexstar had agreed to divest six stations as part of the deal. However, Judge Nunley described the FCC’s clearance process as “unusual” and criticized it for failing to address the merger’s anticompetitive effects adequately. He also pointed out that the DOJ ended its antitrust investigation early, a departure from the usual review timeline.

Nunley referenced public comments by then-President Trump urging regulators to approve the deal, stating it would “knock out the Fake News.” The judge’s preliminary injunction aims to maintain the status quo until the lawsuit is fully adjudicated, preventing the merger from proceeding further in the meantime.

The attorneys general and DirecTV argue that allowing the merger to proceed could force distributors to accept Nexstar’s higher fee demands or risk losing access to popular programming, such as Sunday NFL football games. The ruling underscores ongoing concerns about media consolidation and its impact on competition, consumer prices, and local news diversity.