Eight US states ask judge to temporarily stop $3.5bn Nexstar and Tegna merger | US news
Eight states asked a U.S. judge Friday to issue a temporary restraining order to prevent a $3.5 billion merger between Nexstar Media Group and Tegna.
Local broadcast station owners received approval for the merger from the Federal Communications Commission (FCC) and the U.S. Department of Justice on Thursday and said they finalized the transaction two hours after the approval, the day after the states filed the suit.
The states argue that the deal, which would create the largest group of broadcast stations in the United States, would “put more broadcast programming in the hands of fewer people, eliminate local jobs, increase cable bills, and significantly impact the delivery of news and other media content to Americans nationwide.”
California, Colorado, Illinois, Oregon, New York, North Carolina, Connecticut and Virginia seek to maintain the status quo and argue that without action, companies “would be free to proceed with – and even accelerate – integration.” The states also argue that the merger would give deal leaders the power to raise prices for pay-TV providers and eliminate separate news operations in markets with more than one channel.
U.S. District Judge Troy Nunley in Sacramento, California, said he would review the issue based on court documents.
The acquisition, if not overturned by the courts, will expand Nexstar’s footprint to cover 80% of U.S. television households. As part of its approval, the FCC announced it was waiving a rule that allows television station owners to reach no more than 39 percent of U.S. television audience households.
In February, Donald Trump said he supported the deal. The president repeatedly pressured FCC Chairman Brendan Carr to revoke the licenses of NBC and ABC stations. Critics said Carr was violating broadcasters’ free speech rights.
Carr says national networks such as NBC, owned by Comcast, and ABC, owned by the Walt Disney Company, have amassed too much power and said he wants to empower local affiliates owned by companies such as Tegna and Nexstar to preempt programming.
Nexstar is the largest local television broadcast group in the United States, controlling more than 200 channels in 116 U.S. markets reaching 220 million people, while Tegna owns 64 television stations in 51 media markets.
Guardian staff contributed to the report
