A federal judge put the merger of Nexstar and Tegna — which would create a company that can reach about 60% of U.S. households through 260 local television stations — on hold for two weeks after DirecTV challenged the merger in court under federal antitrust laws. File Photo by Shawn Thew/EPA
A judge has temporarily blocked the merger of Nexstar and Tegna, which would create a company that controls 260 television stations across the U.S.
Nexstar, already the largest television stations owner in the country, agreed to buy Tegna — which is Gannett’s broadcasting arm — announced the $6.2 billion merger in August and the FCC earlier this month approved the merger.
The deal would give the combined companies access to roughly 60% of U.S. households, and FCC chief Brendan Carr pinned the decision on underwriting this many stations by one company as protecting “the future of local broadcast TV stations.”
U.S. District Judge Troy L. Nunley on Friday, however, issued a 14-day temporary restraining order to put the merger on hold after a lawsuit from DirecTV alleged that the merger violates antitrust laws, Deadline and NBC News reported.
“Plaintiff asserts Nexstar’s proposed merger with Tegna will drive up the cost of television service to tens of millions of Americans, shutter local newsrooms around the country, substantially reduce competition in dozens of local markets and harm consumers,” Nunley wrote in the ruling.
Nexstar said that buying the stations will allow them to spend more money on local news at a time when news organizations of all types are struggling in a difficult atmosphere.
However, DirecTV — as well as a group of state attorneys general in a separate lawsuit — said that the combined company would be able increase retransmission consent fees for distributors that carry the stations.
Nunley scheduled a hearing for April 7, until which Nexstar is required to hold off on integrating Tegna’s business into theirs.
This week in Washington
President Donald Trump stands with U.S. Secretary of Agriculture Brooke Rollins during an event celebrating farmers on the South Lawn of the White House on Friday. Photo by Aaron Schwartz/UPI | License Photo
