Judge blocks Nexstar's $6.2B merger with Tegna pending antitrust case

A federal judge has blocked the $6.2 billion merger between Nexstar Media Group and Tegna, ordering the two television giants to operate as separate entities until an antitrust lawsuit is resolved. U.S. District Court Chief Judge Troy L. Nunley issued the preliminary injunction Friday in Sacramento, California, finding that eight state attorneys general and DirecTV were likely to prevail in their legal challenge. The ruling takes effect Tuesday, requiring Nexstar to allow Tegna to continue operating as a distinct, independently managed business unit despite the deal having already been finalized in late March. The attorneys general, representing California, Colorado, Connecticut, Illinois, New York, North Carolina, Oregon, and Virginia, along with satellite provider DirecTV, argue the merger violates federal antitrust laws and would harm consumers. They contend the deal, which would give Dallas-based Nexstar control of 265 television stations across 44 states covering 80 percent of the U.S. population, will drive up prices for television consumers and diminish local news and sports programming. In 31 local television markets, including San Diego and Sacramento, Nexstar would own multiple network affiliates, raising concerns about staff consolidations and newsroom layoffs. DirecTV specifically argued the combined company would have the leverage to demand dramatically higher broadcast fees, with those costs potentially passed on to its 10 million customers, potentially leaving subscribers unable to watch programming like Sunday NFL football games. The merger received approval from the Trump administration's FCC and Justice Department, with the deal closing within an hour of federal clearance in late March. However, the full FCC commission did not vote on the matter, prompting concern from Senators Ted Cruz and Maria Cantwell, who questioned the commission's use of delegated authority in approving an unprecedented transaction. Nexstar, which acquired Tribune Broadcasting for $6.4 billion in 2019, plans to appeal the ruling. California Attorney General Rob Bonta called the decision "a critical victory," stating the merger is "illegal, plain and simple" and that state officials would continue fighting for consumers, workers, and affordable television pricing.