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Nexstar Media Group and Tegna logos displayed side by side following FCC-approved merger

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iconMarch 20

by James Thornton

FCC Approves Nexstar-Tegna Merger Despite Lawsuits Challenging Deal


The FCC has approved Nexstar’s $6.2 billion acquisition of Tegna, creating a broadcast giant reaching 80% of US homes, even as lawsuits challenge the deal

The Federal Communications Commission approved the merger of local television giants Nexstar Media Group and rival Tegna on Thursday, the same day that two lawsuits seeking to halt the agreement were revealed. Last August, Nexstar announced that it will buy Tegna for $6.2 billion. The merger would result in a business that controls 265 television stations in 44 states and the District of Columbia, the majority of which are local ABC, CBS, Fox, and NBC affiliates. Soon later, Nexstar announced that it had completed its acquisition of Tegna after receiving approval from the FCC and the US Justice Department. The deal will increase Nexstar's reach to 80% of US TV homes. According to FCC Chairman Brendan Carr, the firm has agreed to divest six of those stations. As part of its decision, the FCC stated that it will waive a restriction that enables broadcast television station owners to reach no more than 39% of U.S. television audience households. "This transaction is critical to maintaining strong local journalism in the communities we serve," Nexstar CEO Perry Sook stated.

Why This News Matters:

Millions of Americans may get their local news in a different way because of this merger. One company will control a lot of local TV stations across the country after Nexstar Media Group buys Tegna. Supporters say it helps local news stay alive in the age of streaming, but critics worry it could mean fewer independent voices and higher costs for viewers

Political Support and Regulatory Context

The merger required permission from the Republican Trump administration's FCC because the government had to relax restrictions limiting how many local stations a single firm may control. "We are grateful to President Trump, Chairman Carr and the DOJ for recognizing the dynamic forces shaping the media landscape and allowing this transaction to move forward," according to Perry Sook. President Donald Trump approved the merger in February, writing, "We need more competition against THE ENEMY, the Fake News National TV Networks." Carr stated that big networks like NBC and ABC wield too much authority, and that he wants to boost local affiliates controlled by corporations like Tegna and Nexstar. He claimed that the contract "acts mindful of the media marketplace that exists today — not the one from decades past." Carr stated that the agreement will ensure that broadcasters have the funds to continue investing in local operations and content.

Lawsuits Filed to Block the Deal

Attorneys general from eight states, as well as DirecTV, have filed cases in the United States District Court in Sacramento, California, seeking to halt the merger. The top attorneys from California, Colorado, Connecticut, Illinois, New York, North Carolina, Oregon, and Virginia filed the lawsuit. "If this merger moves forward, cable prices will spike for consumers in New York and across the country," added James. DirecTV expected that the agreement would allow Nexstar to hike the fees it charges distributors, forcing subscribers to pay more.

State officials claim the merger will harm consumers by raising prices and reducing local news coverage. "This merger is illegal, plain and simple," declared California Attorney General Rob Bonta. The complaints argue that the merger would violate federal anti-monopoly rules and limit competition.

Concerns Over Local Journalism and Competition

Given Nexstar's inclination to consolidate newsrooms, both complaints raised concerns that the acquisition will harm the already struggling local journalism industry. Nexstar and Tegna own one or more stations in 31 markets. "We all benefit when local newsrooms compete to break stories, investigate wrongdoing, and keep the public informed - and that is exactly what this merger puts at risk," spokesperson Letitia James stated. Anna Gomez, a Democratic member of the FCC, criticized the decision, stating it concentrates "broadcast power in fewer corporate hands, shrinking independent editorial voices, and prioritizing national business interests over local needs." Critics claim that the combination will hasten newsroom consolidation, layoffs, and choices made far from local communities.

Industry Impact and Broader Debate

The recent broadcasting merger set off alarm bells for media watchdogs, yet analysts anticipated more consolidation within the broadcast TV landscape. Nexstar, already the largest local television broadcasting group in the country, operates over 200 stations. Tegna, on the other hand, manages 64 stations across 51 media markets. Proponents argue that such consolidation is essential to keep pace with streaming platforms and social media. Nexstar maintained that the merged entity would be "better positioned to deliver exceptional journalism and local programming." Critics, however, voiced concerns that the outcome would mean "fewer voices, less competition, and higher costs for consumers." The merger also triggered political and media disputes, particularly those about influence, regulatory pressure, and the future of local broadcasting in the United States.


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James Thornton

James Thornton is a U.S. business reporter covering markets, technology, and economic policy.