California, New York and 6 More States Sue to Block $6.2 Billion Nexstar-Tegna Merger
Attorneys General from eight states have filed lawsuits in an effort to block Nexstar’s $6.2 billion acquisition of Tegna, further calling upon the DOJ and the FCC to halt the “illegal” merger.
The coalition of lawsuits filed on Wednesday comes from California, New York, Colorado, Illinois, Oregon, North Carolina, Connecticut and Virginia.
“Today, my office has filed a lawsuit to block the proposed merger of broadcasting giants Nexstar and Tegna. This merger would cause incredibly high levels of concentration in local TV markets and is expected to raise cable and satellite prices across the country, causing irreparable harm to local news and consumers who rely on their reporting as a critical source of information,” California AG Rob Bonta said in a statement. “If approved, this multibillion-dollar deal would combine the nation’s largest and third-largest television-station conglomerates, creating a behemoth covering 80% of U.S. television households. This merger is illegal, plain and simple, running contrary to federal antitrust laws that protect consumers. When broadcast media is owned by a handful of companies, we get fewer voices, less competition, and communities lose the critical check on power that local journalism delivers.”
“Competition among local TV stations allows consumers to enjoy a variety of affordable options for quality coverage of news, sports, and more,” New York AG Letitia James added. “This illegal merger threatens local news and could raise fees for consumers by combining hundreds of TV stations under the same owner. I’m suing to stop Nexstar’s illegal merger with Tegna to keep cable bills down and ensure New Yorkers can access the independent local news options they count on.”
Nexstar is “highly engaged” in discussions with the Department of Justice and the Federal Communications Commission regarding the transaction, according to CEO Perry Sook. FCC chairman Brendan Carr and President Donald Trump have both previously expressed support for the deal, which would require the elimination of the 39% national TV ownership cap put in place by Congress in 2004 to ensure viewpoint diversity and prevent monopolization.
First announced last August, upon closing, Nexstar would have 265 television stations in 44 states and the District of Columbia, representing 80% of U.S. television households, adding Big-4 affiliate stations in Phoenix, Atlanta, Toledo and Portland, Maine, in the process. The combined company would also have stations in nine of the top 10 markets, and in 41 of the top 50. Together, Nexstar and Tegna have combined net revenue of $8.1 billion and adjusted EBITDA before stock-based compensation of $2.56 billion, excluding synergies.
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