FCC Approves Nexstar-Tegna Merger Despite Lawsuits

The Federal Communications Commission (FCC) approved a $6.2 billion merger between Nexstar Media Group and Tegna on Thursday, despite lawsuits filed by eight Democratic-led states seeking to block the deal.

The merger creates a company that owns 265 television stations in 40 states and Washington D.C., most of which are local affiliates of major networks like ABC, CBS, Fox, and NBC. FCC Chairman Brendan Carr stated that Nexstar agreed to divest itself of six stations as part of the approval process.

The deal required waiving rules limiting how many local stations one company can own. According to Reuters, Nexstar closed its acquisition of Tegna following approvals from both the FCC and the U.S. Justice Department.

The lawsuits, filed with the U.S. District Court in Sacramento, California, argue that the deal will lead to higher prices for consumers and stifle local journalism. According to The Guardian, the states seek a temporary restraining order to stop the merger, arguing it would 'put more broadcast programming in the hands of fewer people, cut local jobs, increase cable bills, and significantly impact the delivery of news.'

The eight states involved are California, Colorado, Illinois, Oregon, New York, North Carolina, Connecticut, and Virginia. They argue that without a restraining order, the companies 'would be free to proceed with – and even accelerate – integration'. The states also claim the merger would give the deal’s principals the power to raise fees for pay TV providers and abolish separate news operations in markets with more than one station.

According to CNBC, Nexstar CEO Perry Sook said in a statement: 'This transaction is essential to sustaining strong local journalism in the communities we serve.' He expressed gratitude to President Trump and FCC Chairman Carr for enabling the deal. The merger was endorsed by President Donald Trump on TruthSocial after months of criticism about its potential effects.

The BBC reported that Nexstar has expanded from a single Pennsylvania television station in 1996 into the largest local TV operator in the U.S., with more than 200 stations. The acquisition would bring this count to 265, covering 80% of US households across 44 states.

The FCC stated that the deal helps 'counteract the growing imbalance of power' between local broadcast TV stations and large media firms like Fox, Disney, and Paramount. Democratic Commissioner Anna Gomez criticized the decision for concentrating broadcast power in fewer corporate hands and shrinking independent editorial voices.