Eight States Sue Nexstar-Tegna $6.2 Billion Acquisition

Nexstar, the largest U.S. local TV station group with 201 stations, aims to acquire Tegna's 64 stations, which would result in a combined 265 stations. This transaction would push Nexstar's holdings well over the FCC’s 39% ownership cap, for which Nexstar filed a waiver application in November.

The plaintiff states, California, New York, Colorado, Illinois, Oregon, North Carolina, Connecticut, and Virginia, allege the merger violates Section 7 of the Clayton Act. California Attorney General Rob Bonta stated the merger would cause high concentration, raise cable and satellite prices, and degrade local news, creating a "behemoth covering 80% of U.S. television households." New York Attorney General Letitia James added that the merger threatens local news and could raise consumer fees, citing Nexstar's "established track record of consolidating newsrooms." The Trump administration, including President Donald Trump and FCC Chairman Brendan Carr, publicly supports the merger, advocating for deregulation and the elimination of the ownership cap.

Nexstar's Chairman and CEO, Perry Sook, claims the merger is "vitally important to the future of local television and local journalism" and supports deregulation. The lawsuit seeks a court order declaring the merger illegal and a permanent injunction preventing its completion.