Judge orders Nexstar-Tegna to pause merger
Summary
A U.S. judge has ordered Nexstar and Tegna to stop combining their companies after they merged in a $6.2 billion deal last month. The judge ruled that the merger could raise prices for TV providers and reduce competition in many local markets.Key Facts
- A federal judge issued a preliminary injunction preventing Nexstar and Tegna from merging their operations.
- The judge agreed with DirecTV’s concern that the merger would force TV providers to raise prices for customers.
- The court found that the merger likely reduces competition in dozens of local TV markets.
- Nexstar, the largest broadcast group in the U.S., bought Tegna, creating a company with over 259 stations.
- The Federal Communications Commission (FCC) waived a rule that limits how many households one broadcaster can reach, to approve the merger.
- Several states and DirecTV sued to block the merger, arguing it would harm jobs and reduce competition.
- The Justice Department approved the merger from an antitrust (competition law) viewpoint.
- The injunction requires Nexstar to keep Tegna running independently while the case continues.
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