Federal Judge Blocks Nexstar-Tegna TV Station Merger

A federal judge has blocked the $6.2 billion merger between Nexstar Media Group and Tegna, halting the combination of two of the largest local television station owners in the United States until an antitrust lawsuit is resolved.

U.S. District Court Chief Judge Troy L. Nunley in Sacramento, California, issued the preliminary injunction late Friday afternoon, finding that eight attorneys general and DirecTV are likely to prevail in their legal challenge to the deal. The judge determined the merger would likely lead to higher prices for consumers, stifle local journalism, and violate federal antitrust laws designed to prevent monopolies.

The blocked merger, announced last year and approved by the Federal Communications Commission, would have created a company owning 265 television stations across 44 states and the District of Columbia. Most of these stations are local affiliates of the “Big Four” national networks: ABC, CBS, Fox, and NBC.

Judge Nunley concluded that Nexstar would gain the power to raise retransmission fees charged to video programming distributors like DirecTV, which would result in higher bills for consumers. The court also cited Nexstar’s history of consolidating local television news stations when it owns multiple stations in a single market, meaning viewers would lose options for where to get their local news.

The attorneys general involved in the lawsuit are all Democrats. They, along with DirecTV, filed lawsuits shortly after Nexstar consummated the transaction following approval from the Trump administration. President Trump had publicly endorsed the deal in February, and Federal Communications Commission Chairperson Brendan Carr approved it shortly afterward.

In response to the ruling, Nexstar stated it would appeal the decision to the Ninth Circuit Court of Appeals. Until the legal battle concludes, Nexstar must operate the Tegna stations separately, as required by the judge’s preliminary injunction.

The ruling throws the $6.2 billion merger into doubt, with Nexstar potentially being compelled to unwind the deal if it loses the antitrust case. The company had absorbed 65 additional stations through the acquisition of Tegna.