A federal judge has barred Nexstar from combining operations with recently acquired Tegna stations and ordered the stations to be run separately until an antitrust trial is completed. Chief Judge Troy Nunley of the U.S. District Court for the Eastern District of California issued a preliminary injunction, finding the plaintiffs established a prima facie case that the merger likely would have anticompetitive effects. If Nexstar loses at trial, the court could force it to unwind the $6.2 billion acquisition that added 65 stations to its portfolio. Nexstar said it will appeal to the Ninth Circuit.
The acquisition had already cleared the Federal Communications Commission and the Justice Department, and Nexstar closed the deal shortly after receiving regulatory approval. The deal drew public endorsements from President Trump and FCC Chair Brendan Carr before regulators signed off. Within weeks, eight Democratic state attorneys general and the satellite provider DirecTV sued, arguing the merger concentrates too much local TV power and threatens competition.
Nunley had previously issued a temporary restraining order preventing Nexstar from operating Tegna stations; his latest order continues that separation while legal challenges proceed. He emphasized concerns that the enlarged company could use greater leverage in retransmission and content negotiations — for example, withholding NFL broadcasts from distributors such as DirecTV — to raise prices or otherwise harm competition. Nunley also expressed doubt that the merger’s claimed public benefits, like expanded local news, would outweigh risks including reduced competition, layoffs, or newsroom closures.
After the deal Nexstar became the nation’s largest TV-station group by revenue, owning 265 local stations in 44 states and the District of Columbia and reaching roughly 80% of U.S. households. Tegna had been the fourth-largest station group. Nexstar disputes that the acquisition enables anticompetitive behavior, noting it still represents about 15% of all local stations nationwide.
State attorneys general say Nexstar told investors it expects roughly $300 million a year in “synergies” from integrating Tegna — savings that historically have come from staff cuts and consolidation. They point to Nexstar’s previous Tribune Media purchase, where newsrooms were merged in some markets, as an example. Several Tegna journalists have told NPR they expect significant layoffs at stations where Nexstar now owns two major network affiliates, speaking on condition of anonymity because of job-security fears.
Regulators approved the deal with conditions, including a requirement to sell six stations over two years and waivers allowing Nexstar to acquire stations in more than 30 markets where it already operated, such as Columbus, Denver and Des Moines. Nunley rejected Nexstar’s contention that FCC approval should shield the merger from antitrust review, noting precedent that the FCC lacks authority to resolve antitrust claims and that agency clearance does not bar court enforcement of competition laws.
In response to the ruling, Nexstar said it now owns Tegna, has complied with the court’s prior orders, and believes the transaction is pro-competitive and will strengthen local stations and investment in local journalism. California Attorney General Rob Bonta, one of the plaintiffs, called the decision a victory and said the merger is illegal, pledging to continue the litigation to protect consumers, workers and local news.
FCC Commissioner Anna Gomez, the panel’s lone Democrat, criticized the approval process as expedited and closed-door. Antitrust attorney Beau Buffier, who formerly worked for the New York attorney general, said the case will turn on whether DirecTV and the state attorneys general can show Nexstar gained the power to raise prices; he added the judge’s rulings give plaintiffs a strong chance on the merits. Buffier also noted that a settlement with DirecTV would not resolve concerns from other distributors, and that any state-led settlement likely would require divestitures substantial enough to undermine the deal’s economic rationale — a factor that may lead Nexstar to continue contesting the litigation rather than accept major sales.