Nexstar Media Group has successfully closed its $6.2 billion acquisition of Tegna, marking a significant consolidation in the local television broadcasting industry. The deal, which faced antitrust lawsuits and required regulatory waivers, will create the largest operator of local TV stations in the United States, combining over 260 affiliate stations across the nation.
The acquisition, initially announced in August, faced significant scrutiny. The Federal Communications Commission (FCC) ultimately approved the deal by waiving a long-standing rule that restricts any single company from owning broadcast stations reaching more than 39% of U.S. television households. The combined Nexstar-Tegna entity will now reach an estimated 60% to 80% of U.S. households, solidifying its position as the largest owner of local television stations.
FCC Chairman Brendan Carr stated that waiving the rule was consistent with FCC authorities and would promote competition, localism, and diversity. Nexstar also secured approval from the Department of Justice. Nexstar CEO Perry Sook expressed gratitude for the regulatory bodies’ recognition of the evolving media landscape, emphasizing the deal’s importance for “sustaining strong local journalism.”
Despite regulatory approval, the merger was met with immediate legal challenges. Eight state attorneys general, led by California and New York, filed a federal antitrust lawsuit seeking to block the deal. DirecTV, a satellite and streaming TV provider, also filed a separate lawsuit. Both suits argue that the consolidation is anticompetitive, could lead to higher consumer costs, reduce competition, and potentially result in the closure of local newsrooms or TV blackouts due to carriage disputes.
DirecTV’s general counsel stated the merger is “anti-competitive and not in the public interest,” predicting it would trigger further consolidation. New York Attorney General Letitia James warned of potential price spikes for consumers.
Nexstar and Tegna, like many in the broadcast industry, have sought consolidation to better compete against the rise of streaming services and digital media. Nexstar argues that the merger will create a stronger company better positioned to invest in local journalism and programming. However, critics like FCC Commissioner Anna Gomez voiced strong dissent, calling the approval a decision made “behind closed doors” that would accelerate the consolidation of broadcast power, shrink independent editorial voices, and prioritize national business interests over local needs.
Nexstar has agreed to certain conditions, including divesting some stations, to secure approval. The company’s ability to navigate these ongoing legal challenges and its impact on local news coverage will be closely watched.