A federal judge has halted Nexstar’s takeover of rival Tegna and ordered the newly acquired stations to be run separately until an antitrust trial is resolved.
Chief Judge Troy Nunley of the U.S. District Court for the Eastern District of California in Sacramento issued a preliminary injunction Friday, saying plaintiffs have shown a prima facie case that the merger creates a reasonable probability of anticompetitive effects. If Nexstar loses at trial, the company could be forced to unwind the $6.2 billion deal that added 65 stations to its portfolio. Nexstar said it will appeal to the Ninth Circuit Court of Appeals.
The transaction had already been approved by the Federal Communications Commission and the Justice Department, and Nexstar completed the acquisition hours after receiving regulatory clearance. President Trump and FCC Chair Brendan Carr publicly endorsed the deal before regulators signed off. Within weeks, eight Democratic state attorneys general and satellite TV provider DirecTV sued, arguing the merger would concentrate too much local TV power and harm competition.
Nunley had previously issued a temporary restraining order preventing Nexstar from operating the Tegna stations, and his latest order maintains that separation while the legal challenges proceed. He reiterated concerns that the combined company could use its increased leverage in negotiations — for example, withholding NFL broadcasts from distributors like DirecTV — to raise prices or otherwise harm competition. He also expressed skepticism that the merger’s touted benefits, such as expanded local news output, would offset the risks of reduced competition, layoffs or newsroom closures.
Nexstar, the nation’s largest television station group by revenue, now owns 265 local stations in 44 states and the District of Columbia after the Tegna deal. The company reaches roughly 80% of U.S. households. Tegna was the fourth-largest station group prior to the sale. Nexstar argues it still represents about 15% of all local stations nationwide and disputes that the acquisition will enable anticompetitive conduct.
State attorneys general say Nexstar has promised investors roughly $300 million in annual “synergies” from integrating Tegna — savings that historically have involved staff cuts and consolidation. After Nexstar’s earlier purchase of Tribune Media, for instance, it merged newsrooms in some markets, including Indianapolis. Several Tegna journalists have told NPR they expect mass layoffs at stations where Nexstar now owns two major network affiliates; they spoke on condition of anonymity citing job-security concerns.
Regulators approved the deal with limited conditions, including the requirement to sell six stations over two years. They also granted waivers allowing Nexstar to acquire stations in more than 30 markets where it already operated, including Columbus, Ohio; Denver; and Des Moines, Iowa. Nunley rejected Nexstar’s argument that the FCC’s approval should shield the merger from antitrust review in federal court, noting precedent that the FCC does not have authority to resolve antitrust issues and that agency clearance was not intended to prevent court enforcement of competition laws.
In a statement after the ruling, Nexstar said it now owns Tegna and has acted in line with the court’s prior order, asserting the transaction is pro-competitive and will strengthen local stations while supporting investment in local journalism. California Attorney General Rob Bonta, one of the plaintiffs, called the decision a victory and said the merger is illegal, promising continued legal action to protect consumers, workers and local news.
FCC Commissioner Anna Gomez, the panel’s lone Democrat, criticized the approval process, saying it amounted to expedited, closed-door approvals favoring the administration’s allies. Antitrust lawyer 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 the deal lets Nexstar increase prices for consumers. He suggested the plaintiffs have a strong chance to prevail on the merits based on the judge’s rulings.
Buffier added that even if Nexstar settled with DirecTV, other distributors such as cable companies and streamers would still have concerns, and settling with states would likely require divesting many stations. Such divestitures could undermine the economic rationale for the acquisition and the synergies Nexstar expects, which may incline the company to continue fighting the litigation rather than agreeing to major sales.