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business15h ago
Nexstar and Tegna’s Local TV Megamerger Challenged by Eight States
- Eight states filed separate antitrust lawsuits in California federal court to block Nexstar's $6.2 billion Tegna merger.
- States warn the merger would concentrate local TV markets and could raise prices for consumers.
- DirecTV filed a separate lawsuit arguing the deal would boost market power and raise subscriber fees.
- FCC Chair Brendan Carr has endorsed the transaction, which requires agency approval and potential rule changes.
- If approved, the combined company would reach about 80 percent of homes by owning 265 stations across 44 states and D.C.
- The states argue Nexstar and Tegna are direct competitors, strengthening control over local markets.
- Nexstar says the merger is necessary to survive amid competition from tech platforms like Google and Amazon.
- The deal would allow Nexstar to raise prices and potentially reduce local news diversity, according to the lawsuit.
- DirecTV also filed suit, saying the deal would amplify market power and trigger higher licensing costs.
- Nexstar is the largest local TV station operator in the United States, with Tegna in the top five.
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