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Regulators greenlight massive US broadcast deal
Federal authorities have cleared the way for Nexstar Media Group to acquire rival Tegna in a $6.2 billion transaction, creating a television network that reaches 80% of American households across 44 states.
Regulatory waiver sparks controversy
The Federal Communications Commission (FCC) approved the merger on Thursday after waiving a longstanding rule that caps broadcast ownership at 39% of US households. The decision overrode objections from critics who warned the deal would reduce competition and drive up costs for viewers.
FCC officials defended the move, arguing the merger would help local stations compete against dominant media conglomerates like Disney, Fox, and Paramount. The combined company will control roughly 15% of the nation's television stations, according to the agency.
"This transaction will counteract the growing imbalance of power between local broadcasters and large media firms," the FCC stated.
Critics warn of higher fees and weaker local news
Democratic FCC Commissioner Anna Gomez dissented, arguing the merger would further strain local journalism by concentrating ownership in fewer corporate hands. She pointed to Nexstar's recent newsroom cuts as evidence of the risks.
"This decision prioritizes national business interests over local needs, shrinking independent editorial voices," Gomez said.
A coalition of eight states, including New York, California, and Virginia, has filed a lawsuit to block the deal, contending it would create monopolies in many markets. They argue the merger would enable Nexstar to raise programming fees, which would ultimately be passed on to consumers, while reducing the quality and diversity of local news.
Satellite provider DirecTV has also sued to halt the transaction, citing similar concerns.
Nexstar frames merger as competitive necessity
Nexstar CEO Perry Sook hailed the FCC's decision, thanking the administration for recognizing the challenges facing local broadcasters in an era dominated by streaming services. He described the merger as a strategic move to strengthen Nexstar's ability to deliver high-quality journalism and programming.
"By bringing these two outstanding companies together, Nexstar will be better positioned to deliver exceptional journalism and local programming with enhanced assets, capabilities, and talent," Sook said.
Founded in 1996 with a single Pennsylvania station, Nexstar has grown into the largest local television operator in the US, with over 200 stations. The Tegna acquisition, formed in 2015 after Gannett split its newspaper and broadcast divisions, would expand its portfolio to 265 stations.
Past disputes fuel skepticism
The merger faced heightened scrutiny last year after Nexstar blocked the broadcast of comedian Jimmy Kimmel's show following remarks about the death of conservative activist Charlie Kirk. Critics, including the White House, accused the company of bowing to political pressure to avoid jeopardizing the deal. Nexstar denied the allegations, insisting its decision was independent.
Legal battles loom
The merger still faces legal hurdles, with lawsuits from states and DirecTV pending. Opponents argue the deal would harm consumers and local journalism, while Nexstar maintains it will bolster competition in a rapidly evolving media landscape.
