Growing Support from State Attorneys General, Including Republicans, in Antitrust Lawsuit Over Nexstar-Tegna Merger; Ohio Offers Settlement
Five state attorneys general, including a mix from both parties, have joined an antitrust lawsuit aimed at blocking Nexstar’s $6.2 billion merger with Tegna, two major local TV station owners.
The deal, which received approval from the FCC and the U.S. Department of Justice and technically closed on March 19, has sparked significant contention. If allowed to proceed, it would create a conglomerate with reach to 80% of U.S. households, surpassing the federal cap of 39% for a single owner. DirecTV and several state attorneys general initially filed a lawsuit against the merger, which was subsequently supported by a federal judge. This resulted in a temporary stay on the transaction, preventing further integration of the companies.
California Attorney General Rob Bonta confirmed that attorneys general from Indiana, Kansas, Massachusetts, Pennsylvania, and Vermont have joined the amended complaint.
In response, Nexstar has announced plans to appeal the ruling. CEO Perry Sook indicated that the appeal process is expected to extend over several months.
Former President Donald Trump and FCC Chairman Brendan Carr have both shown strong support for the merger, despite the lack of a formal vote on the approval from the full FCC commission.
Bonta characterized the addition of the new states as a “bipartisan effort,” questioning the legality of the merger. He warned that it could lead to price increases and job losses in journalism, stating, “This is a rotten deal … for consumers, for workers, for affordability, and for our local news.”
Nexstar countered this criticism, labeling the attorneys general as “misguided.” The company emphasized the importance of local journalism, arguing that the plaintiffs lack a history of advocating for the industry they aim to protect. They further cautioned that dismantling the merger would exacerbate challenges facing local broadcasting, attributing much of the decline to the influence of Big Tech and misinformation on social media.
Additionally, Nexstar announced a settlement reached with Ohio Attorney General Dave Yost. This memorandum of understanding includes commitments regarding local news programming and oversight of WBNS-TV in Columbus and WKYC-TV in Cleveland, where both companies would operate.
“Journalistic independence is a cornerstone principle of our democracy,” Yost stated, expressing satisfaction with Nexstar’s commitment to local news standards without resorting to litigation.
