California and Several Other States Push for Action to Block the Nexstar-Tegna Merger
A day after Nexstar announced it had finalized its acquisition of Tegna, resulting in the formation of a major broadcasting entity, California and seven other states filed an emergency motion to halt the merger.
The temporary restraining order was submitted on Friday in Sacramento, seeking immediate judicial intervention to prevent the integration of the two companies.
California Attorney General Rob Bonta, along with other state attorneys general, had previously initiated legal action on Wednesday to block the merger but opted not to seek a restraining order at that time.
This strategy shifted after the FCC and the Justice Department approved the merger on Thursday, promptly followed by Nexstar’s announcement of the completed transaction.
Bonta remarked, “This merger is illegal, plain and simple, running contrary to federal antitrust laws that protect consumers. Nexstar/Tegna is not a done deal. I will not let these corporate behemoths merge without a fight.”
The motion filed by the states highlighted concerns regarding the defendants’ decision to proceed with the merger despite ongoing litigation. The motion stated, “Defendants’ decision to close despite multiple pending lawsuits, their non-responsiveness to counsel’s inquiries, and their rush to consummate the transaction raise the troubling specter that Defendants may be barreling forward with this transaction to frustrate effective judicial review.”
A spokesperson for Tegna did not respond to requests for comment.
The attorneys general argue that the merger will lead to increased costs as the enlarged entity will likely force cable and satellite distributors to pay higher fees to carry their channels, which would ultimately be passed on to consumers.
The newly formed company will manage 259 stations nationwide, including 31 markets where both companies own at least one broadcasting outlet.
In the emergency motion, the attorneys general expressed concerns about the rapidity of regulatory approvals, noting that the Justice Department concluded its investigation before the statutory waiting period had elapsed. The FCC granted approval in under four months and waived compliance with an ownership cap that restricts any one company from controlling stations that reach over 39% of the U.S. population. The combined Nexstar-Tegna entity is projected to reach 54.5% of the market, a measurement that only accounts for half of UHF station reach.
The attorneys general stated, “Questions about whether the FCC has legal authority to change or waive that cap have been the subject of recent public debate and congressional oversight. The FCC’s decision is likely subject to legal challenge in the immediate future.” They also noted that President Trump endorsed the transaction in February, with FCC Chairman Brendan Carr expressing agreement.
Bonta’s office had reached out to Nexstar’s attorneys on March 10 and 11 to secure a timing agreement, requesting that the companies refrain from completing the transaction until California concluded its investigation. However, Nexstar attorneys did not respond to these requests, nor did they reply to another inquiry made just prior to the lawsuit being filed. When informed of plans to seek a temporary restraining order, Nexstar attorneys stated that the “relief sought in your Complaint is no longer available” since the transaction had already closed.
Among other findings, the lawsuit identified 13 markets where both Nexstar and Tegna hold top four stations, suggesting their merger could command over 30% market share based on retransmission revenues.
