Nexstar-Tegna Merger: California AG Sues to Block $6.2 Billion Deal

California Attorney General Rob Bonta filed a lawsuit Friday seeking to block Nexstar Media Group’s $6.2 billion acquisition of Tegna Inc., even as the Federal Communications Commission (FCC) approved the deal hours earlier. The legal challenge, joined by the attorneys general of seven other states, alleges the merger would violate antitrust laws and limit broadcast station ownership.

The lawsuit, filed in U.S. District Court in Sacramento, comes after Nexstar announced Thursday night it had completed the Tegna takeover, despite the pending legal action. Bonta and the coalition of attorneys general are requesting a temporary restraining order to halt the merger until a full hearing can be held.

“Nexstar/Tegna is not a done deal,” Bonta stated Friday. “I will not let these corporate behemoths merge without a fight.”

The combined entity would control television stations reaching approximately 80% of U.S. Television households, according to the Attorney General’s office. In California, the merger would give the new company ownership of half of the Big Four network-affiliated stations – FOX and ABC in the Sacramento-Stockton-Modesto area, and FOX and CBS in San Diego.

The FCC’s approval of the deal involved waiving a federal rule that typically limits a single company to owning stations reaching no more than 39% of U.S. Households. The decision was made by the FCC’s Media Bureau, without a vote from the full commission, despite objections from the sole Democratic commissioner who advocated for a more open process.

The Department of Justice also approved the merger, shortening the standard 30-day waiting period for antitrust review.

The timing of the approvals drew criticism, with some observers pointing to a social media post from former President Donald Trump in February, where he urged the deal to be completed, stating it would “help knock out the Fake News because there will be more competition.” Nexstar founder and chief executive Perry Sook thanked Trump and FCC Chairman Brendan Carr for recognizing the “dynamic forces shaping the media landscape.”

Bonta’s legal challenge focuses on the potential for increased prices for consumers and the impact on local news delivery. Reports have already surfaced detailing Nexstar’s firing of long-standing journalists in Los Angeles, Chicago, and New York, raising concerns about the future of local journalism.

The legal battle over the Nexstar-Tegna merger is unfolding as Bonta’s office also investigates another major media consolidation: Paramount Skydance’s proposed $111 billion takeover of Warner Bros. Discovery. Bonta indicated Friday that no decision has been made regarding potential legal action to block that deal, but his office is actively examining its potential impacts.

It remains unclear when a judge will rule on the request for a temporary restraining order in the Nexstar-Tegna case.