Judge halts Nexstar/Tegna merger after FCC let firms exceed TV ownership limit
Ars Technica • • business
Key Points:
- A US judge has issued a temporary restraining order preventing Nexstar Media Group and Tegna from integrating their assets and operations following Nexstar’s $6.2 billion acquisition of Tegna, citing concerns over reduced competition and potential harm to consumers.
- DirecTV, the plaintiff in the lawsuit, argues the merger will increase retransmission consent fees, lead to newsroom layoffs, and reduce competition in multiple local TV markets, which the judge found likely to cause irreparable harm.
- The merger, approved by the FCC and DOJ under the Trump administration with a waiver of the 39% national TV ownership cap, is being challenged by multiple states and advocacy groups on antitrust and regulatory grounds.
- The judge’s order requires Tegna to operate as a separate, independently managed business unit and maintain pre-merger staff levels while Nexstar must justify why a preliminary injunction should not be imposed to continue the hold-separate order.
- Nexstar must comply with the restraining order and submit reports on its actions, with a hearing scheduled for April 7 to determine whether a longer-term injunction will be issued pending trial.
