Judge Blocks Nexstar-Tegna Merger Over Antitrust Concerns

A federal judge has blocked Nexstar Media Group's $6.2 billion takeover of rival Tegna, according to multiple reports. Chief Judge Troy Nunley of the Eastern District Court of California issued a preliminary injunction on Friday, requiring Nexstar to operate the acquired stations separately until an antitrust trial is resolved.

The ruling comes after eight Democratic attorneys general and satellite TV company DirecTV filed lawsuits challenging the merger. The plaintiffs argue that the deal consolidates too much control of the local TV market in one corporation, potentially leading to higher prices for consumers and stifling local journalism. According to NPR, Judge Nunley reiterated that the plaintiffs had "demonstrated a prima facie case that the merger creates a 'reasonable probability of anticompetitive effect'."

CBS News reports that Nexstar's attorneys told the court the deal has already been reviewed and cleared by the Federal Communications Commission (FCC) and the Justice Department. The FCC order commits the company to expand local journalism and programming, not shrink it. However, Judge Nunley was skeptical of Nexstar's arguments that mergers would enhance the quality of its stations' local news coverage.

The merger needed approval from the Trump administration's FCC because the government had to waive rules limiting how many local stations one company can own. According to Reuters, Judge Nunley found that plaintiffs were likely to succeed on their claims that the deal will substantially lessen competition in dozens of local television markets.

Nexstar plans to appeal the ruling, stating it would seek a review from the Ninth Circuit Court of Appeals. In a statement, Nexstar said it had taken steps consistent with the court order and that the deal would make local stations stronger and support continued investment in local journalism.

PBS reports that if completed, the merger would create a company owning 265 television stations across 44 states. Judge Nunley noted that Nexstar's ownership of these stations could lead to higher retransmission fees charged to video programming distributors like DirecTV, ultimately increasing consumer bills.

The judge also highlighted Nexstar's track record of consolidating local television news stations in markets where it owns multiple outlets, suggesting viewers would lose options for obtaining local news. Additionally, the ruling mentioned that the FCC clearance process was "unusual," and regulatory oversight did not curb the manifest anticompetitive effects of this acquisition.

New York Attorney General Letitia James called the ruling a "critical victory," stating that consolidating hundreds of local TV stations under one corporate owner would mean higher prices and lower quality programming for consumers. She emphasized the importance of fair competition among local TV stations serving communities across the country.