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California, New York and six other US states filed a lawsuit on Wednesday, seeking to block the proposed $6.2 billion deal between Nexstar and rival Tegna. US President Donald Trump has voiced support for the deal. Here's all you need to know.
New York, California, Oregon, and five other states filed a lawsuit on Wednesday seeking to block television station owner Nexstar's proposed $6.2 billion takeover of its rival Tegna, The Hill reported.
The lawsuit argued that the tie-up violates antitrust laws. In a news release, California Attorney General Rob Bonta said that when broadcast media is owned by a handful of companies, what people get is fewer voices, less competition. As a result, communities lose their critical check on power that local journalism delivers.
Why is the Nexstar-Tegna deal being blocked?
The other states that joined in filing the lawsuit included Colorado, Connecticut, Illinois, North Carolina, and Virginia. The suit was filed in the US District Court for the Eastern District of California. It alleges that the merger breaches Section 7 of the Clayton Act, which states that mergers that significantly reduce competition or tend to establish a monopoly are illegal.
What would happen if the merger is approved?
According to The Hill, if US President Donald Trump's administration approves the proposed deal between Nexstar and Tegna, it would create the largest local broadcast group in the country, handing the former control of local news programming in over 70% of American households. Nexstar is already the largest provider of local news in the US. It owns The Hill and NewsNation, along with stations in top US markets like Chicago and Los Angeles.
Will the FCC revise existing rules?
The report suggests that if the Nexstar-Tegna deal were to be approved, the Federal Communications Commission (FCC) would be required to revise the existing rules that curtail the share of US households a single broadcaster can reach across the country. Currently, a single company is barred from reaching over 39% of US households. The proposed deal would have taken the combined entity's share to 60% of the households.
Trump backs Nexstar-Tegna deal
Trump and FCC chair Brendan Carr have voiced support for the proposed merger. According to the Wall Street Journal, Trump, last month, in a Truth Social post, supported the deal and wrote that a bigger Nexstar would balance out "the Fake News National TV Networks."
Simultaneously, Carr, in a post on X, wrote, “President Trump is exactly right. The national networks like Comcast & Disney have amassed too much power. For years, they’ve been pushing this Hollywood & New York programming all over the country with no real checks. Let’s get it done and bring real competition to them.”
States decide to block Nexstar deal
The development comes weeks after the Wall Street Journal reported that several states are planning to sue and block the proposed merger. The move highlights the legal risks that continue to surround media mergers despite the Trump administration's support for large deals.
Citing sources, the report suggested that the attorney general of these eight states would file a lawsuit if the deal gets regulatory clearance from the FCC. The lawsuit by Bonta and others shows how attorneys are now stepping up to block deals as the Trump administration takes a more easygoing view on consolidation.
Bonta’s office is also reviewing Paramount Skydance’s proposed acquisition of Warner Bros. Discovery, a deal that would bring together two historic Hollywood studios and could place CNN and CBS News under the same corporate ownership.
About the Author
Swati Gandhi
Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on fo...Read More
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