FCC approves Nexstar’s purchase of Tegna, creating broadcast giant hours after lawsuits sought to block deal

The Federal Communication Commission has given the green light to the $6.2 billion merger between broadcast station owners Nexstar and Tegna. This decision comes amidst legal challenges from attorneys general in eight states and DirecTV, who argue that the merger will lead to increased prices for consumers and hinder local journalism.

The FCC justified its approval by stating that the acquisition of Tegna by Nexstar will help broadcast TV stations compete against the dominance of national programmers. Despite the merger, Nexstar will still own less than 15% of television stations in the United States.

FCC Chair Brendan Carr highlighted in a social media post that Nexstar has agreed to certain conditions as part of the deal, such as divesting stations, promoting localism, and taking affordability measures. Nexstar, on the other hand, emphasized that the merger is crucial for sustaining robust local journalism in the communities they serve.

However, FCC’s Democratic commissioner Anna Gomez criticized the approval, stating that the merger violates the FCC’s National Television Ownership rule, which prohibits a broadcast owner from reaching more than 39% of all U.S. television households. Nexstar’s reach post-merger is estimated to be around 80%, far exceeding the regulatory limit.

The merger, announced by Nexstar last August, will create a company with 265 television stations across 40 states and the District of Columbia. Nexstar argues that the merger is necessary to compete with larger media companies and tech giants effectively.

Despite Nexstar’s justifications, the states’ attorneys general and DirecTV have filed lawsuits against the merger, alleging that it will lead to increased cable prices and violate antitrust laws. The lawsuits also express concerns about the potential negative impact on local news businesses, as Nexstar has a history of consolidating newsrooms in markets where it owns multiple stations.

President Trump endorsed the merger in February, citing the need for more competition against mainstream media networks. However, given the legal challenges and opposition from various stakeholders, the fate of the Nexstar-Tegna merger remains uncertain.

As the legal battle unfolds, it is evident that the merger between Nexstar and Tegna has sparked significant controversy and raised important questions about media consolidation, consumer prices, and the future of local journalism.