Nexstar asks states, including Colorado, for $150M bond to cover damages from order slowing merger with Tegna
The Colorado Sun • • business
Key Points:
- Lawyers for eight states and DirecTV argue in court that the $6.2 billion merger between Nexstar Media Group and Tegna Inc. harms competition and local journalism, seeking to halt the deal through an antitrust lawsuit.
- Nexstar, which took on $5.1 billion in debt to complete the deal, requests a $150 million bond from DirecTV and the states to cover losses if the merger is delayed further, emphasizing the high costs of unwinding the transaction.
- The merger would combine major local TV stations like Denver's 9News and Fox31, raising concerns about reduced competition, higher content distribution prices, newsroom consolidations, and diminished diversity in local news coverage.
- DirecTV warns that Nexstar’s increased market power could lead to higher retransmission fees and "blackouts" of local programming during negotiations, potentially increasing costs for consumers.
- Judge Troy A. Nunley is expected to issue a decision soon on whether to extend a temporary restraining order that currently requires Nexstar and Tegna to operate separately while the case proceeds.
