Judge blocks Nexstar's acquisition of Tegna until antitrust suit resolved
Summary
A federal judge has blocked the $6.2 billion merger of Nexstar Media Group and Tegna until an antitrust lawsuit is settled. The lawsuit, brought by eight state attorneys general and DirecTV, argues the merger could raise consumer prices and reduce competition in local TV markets.Key Facts
- Nexstar and Tegna planned to merge, creating a company owning 265 TV stations in 44 states plus Washington, D.C.
- The merger was approved by the Federal Communications Commission (FCC) and the U.S. Department of Justice.
- Eight state attorneys general and DirecTV filed a lawsuit opposing the merger on antitrust grounds.
- The plaintiffs argue the deal would increase prices, reduce local journalism quality, and break monopoly laws.
- Judge Troy L. Nunley issued a temporary order blocking the merger and extended it until the lawsuit resolves.
- Nexstar already owns Tegna since closing the deal over four weeks ago, and plans to appeal the judge’s ruling.
- The FCC waived ownership rules to allow this merger but required Nexstar to sell six stations.
- The judge said Nexstar could have multiple major network affiliates in many markets, giving it strong power to raise fees for providers like DirecTV.
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