Image: Nexstar Media Group and TegnaCourtesy
By Open Chronicle Staff with Agencies
SACRAMENTO, Calif. — A federal judge has ordered an immediate halt to the integration of broadcast giants Nexstar Media Group and Tegna Inc., effectively freezing one of the largest media mergers in U.S. history just days after the companies announced the deal had closed.
U.S. District Judge Troy L. Nunley issued the 24-page temporary restraining order late Friday, siding with DirecTV and a coalition of eight state attorneys general. The plaintiffs argue that the $6.2 billion combination would create an illegal monopoly, granting the new entity “unprecedented” power to raise consumer prices and slash local news resources.
The ruling comes as a sharp rebuke to the Federal Communications Commission (FCC) and the Department of Justice, which both granted regulatory clearance for the deal earlier this month. In his decision, Judge Nunley cited concerns that the merger would lead to “irreparable harm” by giving Nexstar excessive leverage in negotiations over retransmission fees—the costs cable and satellite providers pay to carry local stations.
Specifically, the judge highlighted internal contradictions in the companies’ arguments. While Nexstar had publicly claimed that the rise of streaming services would naturally keep prices down, Judge Nunley pointed to recent comments made by Nexstar CEO Perry Sook to investors, where Sook reportedly suggested the merger would actually increase the company’s bargaining power to extract higher fees.
Under the terms of the injunction, Tegna must continue to operate as an independent, economically viable competitor. Nexstar is prohibited from combining newsrooms, terminating Tegna employees, or consolidating station operations until further notice.
The coalition of states challenging the deal, led by California and including Colorado, Illinois, and New York, argued that the combined company would reach 80% of U.S. households, far exceeding traditional ownership caps. Although the FCC waived certain rules to allow the deal, the states maintain that the concentration of power would “stifle independent editorial voices” and lead to widespread newsroom layoffs.
“If this merger moves forward, cable prices will spike for consumers across the country,” New York Attorney General Letitia James said in a statement. “We cannot allow a single corporate entity to hold this much sway over the news and information Americans rely on every day.”
Nexstar has defended the acquisition, stating that the scale is necessary to compete with global tech and streaming titans. The company also pointed to commitments to divest six stations to satisfy initial regulatory concerns.
The pause marks a rare judicial intervention in a transaction already sanctioned by federal agencies. A hearing is scheduled for April 7 to determine if the injunction will remain in place pending a full trial. If the court ultimately sides with the challengers, it could force a historic “de-merger” or require significantly more divestitures from the broadcast leaders.