States Take Legal Action to Halt Nexstar-Tegna Merger: Antitrust Concerns Raised
California and seven other states have taken legal action to halt the merger of Nexstar and Tegna, two broadcasting companies that are set to become the largest operator of local television stations in the United States. The attorneys general filed an emergency motion for a temporary restraining order shortly after the Federal Communications Commission and the Department of Justice approved the $6.2 billion deal. The states argue that the merger violates antitrust laws and could lead to increased prices for consumers.
California Attorney General Rob Bonta criticized the approval of the Nexstar-Tegna merger, stating that it prioritizes corporate interests over those of everyday Americans. He emphasized that the merger is illegal and goes against federal antitrust laws designed to protect consumers. Despite securing approval from regulators, Nexstar and Tegna have not yet commented on the legal action taken by the states.
FCC Chairman Brendan Carr defended the decision to waive a rule limiting TV station ownership to 39% of U.S. households, allowing Nexstar and Tegna to combine assets covering at least 60%. The move was justified as promoting competition, localism, and diversity in the media landscape. However, FCC Commissioner Anna M. Gomez criticized the lack of transparency in the approval process, raising concerns about public accountability.
President Donald Trump publicly endorsed the Nexstar-Tegna deal, citing the need for more competition against mainstream media networks. The state attorneys general fear that the merger could lead to job cuts, increased cable bills, and reduced diversity in broadcast programming. They specifically highlighted the impact on two California media markets where Nexstar and Tegna own local stations.
Nexstar currently operates 201 stations in 116 television markets, while Tegna operates 64 full-power broadcast television stations along with radio stations. The companies have agreed to divest some stations as part of the merger. State attorneys general have been increasingly involved in antitrust issues in the media industry, with recent actions taken against Live Nation and Ticketmaster. California's Attorney General is also investigating the Paramount Skydance-Warner Bros. Discovery merger, which could have implications for major Hollywood studios and news outlets.