Nexstar Media Group finalized its $6.2 billion acquisition of Tegna, forming the largest local TV station operator in the U.S. The deal survived federal scrutiny despite lawsuits and industry pushback.
Massive Merger Creates Local TV Giant
Nexstar's takeover of Tegna combines 265 TV stations across 44 states and Washington, D.C., making it the dominant player in local broadcast television. The company will now reach about 80 percent of American households—more than double the 39 percent ownership cap set by federal law.
The deal’s approval came after the Federal Communications Commission and the Department of Justice gave their green light, with certain conditions. Nexstar must divest several stations in markets like Denver, Indianapolis, and New Haven within two years to comply with regulations.
CEO Perry Sook hailed the merger as a way to strengthen local journalism. He emphasized that joining forces will enable Nexstar to offer better local programming and news coverage with enhanced resources and talent.
Regulatory Challenges and Waivers
Under normal circumstances, federal rules limit any single broadcaster from reaching more than 39 percent of U.S. Households. Nexstar received a rare waiver to exceed that threshold. The FCC also granted permission to own more than two stations in overlapping markets, which applies to nearly three dozen areas where Nexstar and Tegna previously competed.
FCC Chairman Brendan Carr defended the decision, arguing that traditional ownership limits are outdated. He pointed to the decline of local newspapers and the rise of digital platforms as reasons why broadcast TV stations need more flexibility and resources to serve their communities effectively.
Opposition and Lawsuits Cloud the Deal
The merger didn’t go unchallenged. Eight states, led by California Attorney General Rob Bonta, filed an antitrust lawsuit claiming the combined company would wield excessive control over local TV markets. They warn That could lead to higher retransmission fees, job cuts, and reduced news diversity.
DirecTV joined the legal fight, also concerned about the potential for Nexstar to demand higher fees for distributing its channels, which could eventually hit consumers’ wallets. Several advocacy groups and competing media companies opposed the deal, arguing it would hurt competition and localism.
California’s AG warned that despite the federal approvals, the merger is far from settled. The state intends to keep fighting the consolidation in court.
Political and Industry Dynamics
The Nexstar-Tegna deal sparked a rare clash between FCC Chairman Carr and Newsmax CEO Chris Ruddy, a close ally of former President Trump. Ruddy leads opposition efforts on Capitol Hill, warning that loosening ownership caps could empower left-leaning broadcasters and harm independent outlets like Newsmax.
Ruddy argues that the FCC lacks authority to change the 39 percent cap, which was established by Congress. His stance has influenced some Republican lawmakers to scrutinize the merger more closely.
Meanwhile, Nexstar’s move to pull Jimmy Kimmel’s show from its ABC affiliates amid FCC pressure raised eyebrows. Critics viewed it as a strategic play to curry favor with regulators and secure approval for the merger.
Despite the controversy, Nexstar is positioned to leverage its expanded footprint to negotiate retransmission fees and strengthen its hold on local advertising markets.
With federal approval in hand but legal challenges looming, Nexstar’s $6.2 billion acquisition of Tegna marks a turning point in the U.S. Local TV landscape — one that could reshape how communities receive news and entertainment for years to come.
