Federal judge blocks Nexstar-Tegna merger until antitrust lawsuit is resolved
Summary
A federal judge has temporarily blocked the $6.2 billion merger between Nexstar Media Group and Tegna, citing concerns raised in an antitrust lawsuit. U.S. District Court Chief Judge Troy L. Nunley found that eight attorneys general and DirecTV were likely to succeed in their legal challenge, arguing the merger would lead to higher prices for consumers and a decline in local journalism. The merger, already approved by the Federal Communications Commission (FCC), would create a company controlling 265 television stations.
Judge Nunley highlighted Nexstar’s history of consolidating news stations and raising retransmission fees, potentially forcing providers like DirecTV to pass costs onto subscribers or risk losing access to popular programming. He also criticized the FCC’s review process as “unusual” and the Department of Justice’s early termination of its antitrust investigation. The judge noted that the former president publicly urged regulators to approve the deal, which he found concerning.
New York Attorney General Letitia James hailed the ruling as a “critical victory,” emphasizing the importance of fair competition among local TV stations. The preliminary injunction will remain in effect until the lawsuit is fully resolved, preserving the current market structure and preventing the potential anticompetitive effects of the merger.
(Source:Pbs)