Nexstar-Tegna Merger Approved Despite State Lawsuit & FCC Concerns | KTLA

Nexstar Media Group completed its $6.2 billion acquisition of Tegna on Thursday, despite a lawsuit filed the previous day by eight state attorneys general seeking to block the merger. The deal, which gives Nexstar ownership of 265 local television stations reaching approximately 80% of U.S. Television households, received approval from the Federal Communications Commission (FCC) and the Department of Justice (DOJ).

“This transaction is essential to sustaining strong local journalism in the communities we serve,” Nexstar founder and Chief Executive Perry Sook said in a statement. “By bringing these two outstanding companies together, Nexstar will be a stronger, more dynamic enterprise — better positioned to deliver exceptional journalism and local programming with enhanced assets, capabilities and talent.” Sook specifically thanked President Trump and FCC Chairman Brendan Carr for recognizing “the dynamic forces shaping the media landscape” and enabling the deal to proceed.

The lawsuit, led by California Attorney General Rob Bonta, alleges the merger will grant Nexstar excessive control over local news and potentially raise costs for consumers through increased leverage in negotiations with pay-TV providers. Joining California in the legal challenge are the attorneys general of Colorado, Connecticut, Illinois, New York, North Carolina, Oregon, and Virginia.

The FCC’s approval of the acquisition involved waivers to the existing national ownership cap of 39% of U.S. Television households. FCC Commissioner Anna Gomez publicly dissented, stating that a transaction of this magnitude warranted full commission deliberation, rather than a “quiet sign-off meant to avoid public scrutiny.” Gomez also expressed concern about the accelerating pace of media consolidation and its potential impact on the public interest.

Under the terms of the approval, Nexstar is required to divest television stations in six markets within two years: Denver, Colorado (KTVD); Indianapolis, Indiana (WTHR); New Haven, Connecticut (WCTX); Portsmouth, Virginia (WAVY); Slidell, Louisiana (WUPL); and Rogers, Arkansas (KNWA).

Nexstar, already the largest TV station owner in the U.S. With 164 outlets including KTLA in Los Angeles, anticipates the combined entity will be better positioned to compete with larger media companies and technology platforms. The company highlighted the importance of the deal in preserving local news and programming.

The DOJ’s approval followed a period of review, addressing concerns about potential anti-competitive effects. The agency did not immediately respond to requests for further comment on the specifics of its approval.