SACRAMENTO, Calif. — A federal judge in California has blocked the proposed $6.2 billion merger between local television giants Nexstar Media Group and Tegna until an ongoing antitrust lawsuit is resolved. U.S. District Court Chief Judge Troy L. Nunley ruled late Friday that eight state attorneys general and DirecTV, the satellite service provider, are likely to prevail in their legal challenge against the merger.
The merger, which was announced last year and previously received approval from the Federal Communications Commission (FCC), would have combined Nexstar's ownership with Tegna, potentially controlling 265 television stations across 44 states and the District of Columbia, many of which are affiliates of major networks like ABC, CBS, Fox, and NBC.
Initially, Judge Nunley had issued an emergency order to block the deal for three weeks, later extending the injunction as legal arguments were presented on April 7 regarding the lawsuit brought by the Democratic attorneys general and DirecTV. The plaintiffs argue that the merger could inflate consumer prices and suppress local journalism, while violating federal laws aimed at preventing monopolistic behavior.
Representatives for Nexstar countered that not only had the deal been extensively vetted by the FCC and the Department of Justice, but that the agreement also mandated an increase in local journalism commitments. In addition, the merger required Nexstar to divest six stations to comply with ownership regulations, adding complexity to the legal landscape.
The ramifications of this merger are particularly important given its potential to consolidate media power in several local markets, with concerns that it may restrict equitable access to diverse programming and local news coverage. The future of local journalism hangs in the balance as the court continues to assess the merger's impact.
