A federal judge has ordered a pause on Nexstar Media Group’s $6.2 billion acquisition of Tegna, citing likely success by plaintiffs challenging the merger on antitrust grounds. The ruling means the deal cannot proceed until the lawsuit filed by eight state attorneys general and DirecTV is resolved.
U.S. District Court Chief Judge Troy L. Nunley of Sacramento, California, made the decision late on April 17, concluding that the plaintiffs have a strong case against the merger, which they argue will harm competition and consumers. Nunley had previously issued a temporary three-week block on the transaction and extended it while hearing arguments on April 7.
Legal challenges to the merger
The lawsuit brought by attorneys general from eight Democratic-led states and satellite provider DirecTV claims the merger would inflate prices for viewers, reduce the quality of local news and violate federal antitrust laws designed to prevent monopolies. The consolidation would give Nexstar control of 265 television stations across 44 states and the District of Columbia, including multiple affiliates of major national networks such as ABC, CBS, Fox, and NBC.
New York Attorney General Letitia James criticized the deal in a statement, saying it “illegally eliminates competition” and will lead to higher costs and lower quality for consumers.
Arguments from Nexstar and regulatory background
Nexstar’s legal team contended the merger had already undergone regulatory scrutiny and received approvals from the Federal Communications Commission (FCC) and the Department of Justice. They pointed to commitments made to expand local journalism rather than diminish it. Nexstar said it plans to appeal the judge’s ruling.
The merger required a waiver from the FCC, negotiated under the Trump administration, to allow Nexstar to own an unusually large number of local television stations, surpassing traditional ownership limits. FCC Chairman Brendan Carr noted the company agreed to divest six stations as part of the deal.
Judge’s concerns about market power
Judge Nunley highlighted that the acquisition would enable Nexstar to own two or three “Big Four” network affiliates in 31 local markets, potentially giving it leverage over multichannel video programming distributors like DirecTV. The court expressed concern that Nexstar could demand higher broadcast fees, threatening access to popular programming such as NFL games.
Why it matters
This case underscores ongoing scrutiny over media consolidation and its impact on local journalism and consumer costs. If the merger proceeds unchecked, it could significantly reshape U.S. broadcast markets, influencing both content availability and pricing for millions of viewers.
Background
Nexstar announced its intent to acquire Tegna in 2025. The deal aimed to create the largest local television broadcaster in the United States by number of stations held. Despite obtaining regulatory approvals, the merger has faced legal challenges due to concerns about reduced competition and media diversity.
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