A federal judge in Sacramento temporarily halted Nexstar Media Group's operation of Tegna stations following the company's $6.2 billion acquisition, approved by regulators last month. The move came amid antitrust lawsuits from eight states and DirecTV, alleging the deal violates competition laws. Chief Judge Troy Nunley heard arguments last week and plans to rule soon.
Nexstar completed its purchase of rival Tegna on the same mid-March day that the Federal Communications Commission and Justice Department approved the deal, granting a waiver to 2004 ownership limits. The transaction gives Nexstar control of 265 local TV stations reaching 80% of U.S. households across 44 states and Washington, D.C. Nexstar CEO Perry Sook thanked President Trump, FCC Chair Brendan Carr and Justice Department officials for the approvals, speaking from newly acquired WFAA studios in Dallas. Tegna CEO Mike Steib received $22.6 million upon closing, per federal securities filings. Sook highlighted the approvals as recognizing changes in the media landscape. Tegna stations briefly displayed Nexstar logos at newscast ends, but the judge's order required their removal. A coalition of Democratic attorneys general from eight states, along with DirecTV, filed suits claiming the merger harms competition by boosting Nexstar's negotiating power with providers. In court last Tuesday, California's Laura Antonini argued it contradicts antitrust precedent, while Nexstar attorney Alex Okuliar countered that owning more stations does not increase leverage, noting the company holds just 15% of U.S. local stations. Colorado Attorney General Phil Weiser emphasized the need for rival local news sources. Judge Nunley, an Obama appointee, called Nexstar's rush to close 'questionable judgment' and appeared open to a longer pause. Nexstar anticipates $300 million in annual synergies, including consolidated programming in markets like Atlanta and Denver, though past acquisitions led to layoffs. Tegna journalists fear mass cuts in overlapping markets and shifts to NewsNation content.
