A federal judge has temporarily blocked the $6.2 billion merger between Nexstar Media Group and Tegna, following a lawsuit from DirecTV that alleged the deal violated antitrust laws. The judge's ruling, granting a temporary restraining order, cited concerns that the merger could increase costs for consumers, reduce competition, and harm local newsrooms. Despite previous approvals from the FCC and DOJ, along with public support from President Trump, the judge scheduled a hearing for April 7th to further examine the matter. Critics, including an FCC commissioner and Senator Ted Cruz, voiced concerns over the approval process and potential impact on local journalism.
A federal judge late Friday put a hold on the $6.2 billion merger between Nexstar Media Group and Tegna, a deal that would U.S. District Judge Troy L. Nunley in California granted a request from DirecTV, which argued in a lawsuit that the pending merger violates federal antitrust laws.
Eight attorneys general, led by California's Rob Bonta, filed a separate“Plaintiff asserts Nexstar’s proposed merger with Tegna will drive up the cost of television service to tens of millions of Americans, shutter local newsrooms around the country, substantially reduce competition in dozens of local markets, and harm consumers,” Nunley wrote in his 24-page ruling.Nunley issued a 14-day temporary restraining order and scheduled an April 7 hearing. Nexstar declined to comment. Tegna did not immediately respond to a request for comment. Both the Federal Communications Commission and the Department of Justice had previously approved the merger. President Donald Trump also publicly backed the deal. In green-lighting it, the FCC waived a rule barring any single company from owning television stations that reach more than 39% of U.S. households. The combined entity would cover at least 60%.Anna M. Gomez, the lone Democrat on the FCC, sharply criticized that decision. She faulted the agency for blessing the merger “behind closed doors with no open process, no full Commission vote, and no transparency” for consumers. Sen. Ted Cruz, , chair of the Senate Commerce Committee, also said the matter should have come up for a full commission vote. Nexstar CEO Perry Sook has maintained that the “transaction is essential to sustaining strong local journalism in the communities we serve.” Nexstar operates 201 stations in 116 television markets; Tegna operates 64 full-power broadcast television stations.
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Judge Halts Nexstar-Tegna Merger Over Antitrust ConcernsA federal judge has temporarily blocked the $6.2 billion merger between Nexstar Media Group and Tegna following a lawsuit from DirecTV, citing potential violations of federal antitrust laws. The merger, which had previously been approved by the FCC and DOJ, faced criticism for its potential impact on local news and consumer costs. A hearing is scheduled for April 7.
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