U.S. District Judge Troy Nunley has temporarily halted Nexstar Media Group's $6.2 billion acquisition of Tegna, ordering the companies to cease integration efforts pending further review. The judge's ruling comes in response to a lawsuit filed by DirecTV, which argued that the merger would violate antitrust laws and harm consumers.
Key Takeaways
A federal judge has temporarily blocked Nexstar's $6.2 billion acquisition of Tegna, citing concerns over reduced competition and potential harm to consumers. The order requires both companies to halt integration efforts until further review.
- Judge Troy Nunley issued a temporary restraining order halting the merger
- DirecTV sued, alleging antitrust violations and increased consumer costs
- Merger would create the largest TV station group, reaching 80% of U.S. households
- Nexstar argues the deal will enhance local news investment
- Hearing scheduled for April 7 to determine if a preliminary injunction should be issued
According to multiple reports, Nunley issued a 14-day temporary restraining order on Friday, prohibiting Nexstar from integrating Tegna's assets. The judge agreed with DirecTV's assertion that immediate integration could eliminate competition, result in newsroom layoffs, and make it more difficult to divest Tegna stations if required by the court.
The proposed merger would create the largest TV station group in the U.S., reaching approximately 80% of American households. Nexstar argued that acquiring Tegna's stations would allow for increased investment in local news. However, DirecTV and a coalition of eight states led by California and New York contended that the combined company could raise retransmission consent fees, leading to higher costs for TV subscribers.
Nunley scheduled a hearing for April 7 to determine whether a preliminary injunction should be issued. In the meantime, Tegna must operate as a separate and independently managed business unit, with restrictions on sharing competitively sensitive information between the companies.
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