Federal Judge Halts Nexstar–Tegna Merger Pending Antitrust Case

According to PBS, U.S. District Court Chief Judge Troy L. Nunley issued the ruling Friday in Sacramento, concluding that a coalition of eight Democratic state attorneys general and DirecTV are likely to succeed in their challenge against the deal. The plaintiffs argue the merger would harm consumers by increasing prices, weakening competition, and diminishing the quality of local journalism.

The merger, first announced last year and previously approved by the Federal Communications Commission, would combine the companies into a broadcasting powerhouse controlling 265 television stations across 44 states and Washington, D.C. Most of those stations are affiliated with major national networks such as ABC, CBS, Fox, and NBC. Per PBS, critics contend that such a concentration of ownership could give Nexstar significant leverage over distributors and audiences alike.

Judge Nunley emphasized concerns that the merger could lead to higher retransmission fees charged to distributors like DirecTV, costs that would likely be passed on to consumers. According to PBS, he also pointed to Nexstar’s history of consolidating news operations in markets where it owns multiple stations, warning that viewers “will lose options for where to get their local news.”

The ruling further noted that distributors might face pressure to accept higher fees or risk losing access to key programming, including popular sports broadcasts such as Sunday NFL games. The judge concluded that maintaining the current situation while the case proceeds is “in the public interest.”

Read more: Judge Orders Pause on Nexstar-Tegna Integration Amid Antitrust Challenge

Attorneys representing Nexstar argued in court that the merger had already undergone regulatory scrutiny and received clearance from both the FCC and the Department of Justice. They maintained that conditions imposed by the FCC would require the company to expand local journalism efforts rather than reduce them, according to PBS.

However, Nunley raised concerns about the regulatory review process itself, describing it as “unusual.” According to PBS, he wrote that oversight failed to adequately address what he called the “manifest anticompetitive effects of this acquisition.”

The judge also pointed to the Justice Department’s decision to end its antitrust review early, a move known as “early termination,” which shortened the typical evaluation period.  Nunley highlighted that the FCC’s licensing process was still ongoing at the time, making the situation even more atypical.

“In unusual circumstances — with the FCC’s quasi-adjudicatory licensing proceeding still pending — the President himself weighed in publicly in February and urged federal regulators to approve the deal to ‘knock out the Fake News,’” Nunley wrote.

The merger had required special approval from the FCC to bypass existing limits on how many local stations a single company can own. FCC Chairman Brendan Carr previously stated that Nexstar agreed to divest six stations as part of the arrangement, according to PBS.

The injunction ensures that no further steps toward completing the merger can proceed until the lawsuit is fully resolved. New York Attorney General Letitia James praised the decision, calling it a “critical victory” in a statement released Friday evening.

Source: PBS