Simply weeks after closing one of many largest media acquisitions in recent times, Nexstar Media Group has been dealt a big authorized blow.
Nexstar, one of many nation’s largest house owners and operators of native tv stations, first introduced its plan to amass Tegna in August 2025.
The $6.2 billion deal was anticipated to strengthen Nexstar’s attain in main markets. As soon as absolutely mixed, the corporate will function 265 tv stations in 44 states and the District of Columbia, considerably increasing Nexstar’s presence nationwide.
The merger was formally accomplished in March after receiving required approvals from the Federal Communications Fee (FCC) and the US Division of Justice.
However final week, a US District Courtroom choose halted additional proceedings, making a wave of recent uncertainty on what could possibly be one of many media trade’s largest latest offers.
Choose freezes Nexstar’s growth plans
Even earlier than the announcement of the Tegna-Nexstar merger’s finalization, the deal confronted direct threats from a number of antitrust lawsuits.
In March, California Legal professional Basic Rob Bonta led a coalition of 8 attorneys common to request an emergency order to cease the merger.
Within the request, Bonta requested to dam the merger proceedings whereas the case is ongoing.
“The merger is illegal, plain and simple. The federal government may have thrown in the towel, but we’ll keep fighting for consumers, for workers, for affordability, and for our local news,” mentioned Bonta.
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DirecTV additionally challenged the merger on antitrust grounds, arguing that it might create a monopolistic market and lift prices for customers.
The states’ lawsuit and DirecTV’s problem have been later consolidated by the courtroom.
Opponents argued the mix, if allowed to proceed would create a “titan covering 80% of U.S. television households.”
Additional noting that in California, the mixed Nexstar-Tegna firm would find yourself proudly owning half of the Huge 4 (FOX, NBC,ABC, and CBS) community affiliated station in Sacramento, Stockton, Modesto, and San Diego areas.
The merger experiences additionally adopted the firing of journalists in Los Angeles, Chicago, and New York.
And including to the concerns, final week, US District Courtroom Chief Choose Troy L. Nunley in Sacramento, California, issued a preliminary injunction blocking the merger whereas the case proceeds.
The ruling doesn’t imply that it’ll turnover the acquisition, it simply prevents Nexstar from absolutely commbining with Tegan whereas the authorized struggle ensues.
However the sudden delays might imply delayed price financial savings and administration consolidation.
Bonta known as the ruling a “critical win” within the case, saying that the merger has the potential to “cut local jobs, increase cable bills, and significantly impact the delivery of news and other media content to Americans nationwide.”
Nexstar inventory is up 36% over the 12 months.
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Nexstar vows to struggle again
In an official assertion, Nexstar pushed again strongly on the ruling,
The corporate mentioned the transaction had already closed greater than 4 weeks in the past, after acquiring “all required regulatory approvals from the Federal Communications Commission and the U.S Department of Justice.”
Nexstar confirmed that it plans to attraction the choice and current the case earlier than the Ninth Circuit Courtroom of Appeals.
The broadcaster has consitently defended the merger as helpful for customers and communities.
Nexstar mentioned that the “pro-competitive transaction will make local stations stronger and support continued investment in local journalism and fact-based news.”
The Tegna acquisition is a strategic wager on scaling at a time when conventional tv is underneath rising stress as digital streaming is turning into the dominant viewing format.
In line with Nielsen, streaming utilization elevated 71% from Could 2021 to Could 2025, whereas broadcast and cable viewing declined 21% and 39%, respectively.
“Streaming represented 44.8% of TV viewership in 2025, while broadcast (20.1%) and cable (24.1%) combined to represent 44.2% of TV,” notes the report.
However the tv remains to be resilient, and with this acquisition, Nexstar hopes to increase market attain.
Nexstar has additionally lined up billions in financing tied to the acquisition, together with beforehand disclosed debt commitments, which I reported beforehand right here.
Thus, the result of the litigation is particularly essential for Nexstar, as delays might sluggish advantages anticipated from this growth transfer.
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