In brief
U.S. District Court Chief Judge Troy L. Nunley halted the $6.2 billion merger of Nexstar and Tegna, siding with eight state attorneys general and DirecTV. The merger, if allowed, could escalate consumer costs and diminish local journalism. The deal, which would combine 265 TV stations, already received initial approval from the FCC, but concerns over monopoly dominance prompted the legal intervention.
SACRAMENTO, Calif. — A federal judge has blocked a $6.2 billion merger of Nexstar Media Group and Tegna, pending a resolution to an antitrust lawsuit involving multiple state attorneys general and DirecTV. Chief Judge Troy L. Nunley determined that the plaintiffs are likely to succeed in arguing that the merger would inflate consumer costs and decrease local journalism, contravening federal antitrust laws. The merger was aimed at creating a media powerhouse with 265 TV stations across 44 states and Washington D.C., many affiliated with major networks like ABC, CBS, Fox, and NBC.In previous hearings, Nexstar’s legal representatives contended that the deal would enhance local content rather than diminish it, having secured preliminary clearance from both the FCC and the Department of Justice. However, attorneys representing the states assert that the merger's consequences could lead to monopolistic control over local news, potentially forcing DirecTV and other cable providers to yield to Nexstar's fee demands.Previously, Judge Nunley had issued an emergency order temporarily blocking the deal. The merger faced particular scrutiny due to plans allowing Nexstar to hold multiple affiliations in several local markets, leading to fears of reduced competition. The legal proceedings surrounding the merger remain ongoing as regulators weigh the implications for local media landscapes.
