Federal judge blocks Nexstar-TEGNA merger amid antitrust lawsuit
A federal judge blocked the $3.5 billion Nexstar-TEGNA merger due to an antitrust lawsuit, pausing the deal indefinitely.Summary
A federal judge has issued an injunction blocking the $3.5 billion merger between Nexstar Media Group and TEGNA, pending the outcome of an antitrust lawsuit filed by DIRECTV. DIRECTV alleges the merger would create a “broadcast behemoth,” leading to increased cable costs, reduced competition, and potential closures of local newsrooms. The merger would give Nexstar control of 228 television stations, reaching 80% of American households, and create a “triopoly” in cities like Indianapolis where Nexstar and TEGNA both own major network affiliates.
Nexstar argued the merger would actually lower cable costs by competing with streaming services and claimed concerns about local news quality were unfounded, citing increased local news programming hours since 2019. However, the court determined DIRECTV demonstrated a “reasonable probability of anticompetitive effect.”
The injunction requires Nexstar to maintain TEGNA as an independent competitor, preventing information sharing or influence over its management, and to maintain existing staffing levels. The order is effective April 21st, extending a previous temporary restraining order.
(Source：The Indianapolis Star)