Eight States Sue To Block Massive TV Merger Deal On Antitrust Grounds
California, New York and six other states filed an emergency motion on Friday to halt the proposed $6.2 billion merger between television giants Nexstar Media Group and Tegna following a similar lawsuit lodged earlier in March by eight state attorneys general led by Rob Bonta of California who argued that consolidating local broadcast media into fewer hands violates federal antitrust laws while DirecTV also joined forces with these states to challenge the transaction which President Donald Trump had previously endorsed.
Key Points
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1Eight state attorneys general and DirecTV have filed lawsuits to block the proposed $6.2 billion merger between Nexstar Media Group and Tegna.
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2The legal action argues that combining these two local television giants violates federal antitrust laws by reducing competition in broadcast media ownership.
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3This deal, which would create one of America's largest operators of TV stations, was previously endorsed for the Trump administration but now faces significant regulatory hurdles.
Developments
Eight attorneys general filed an emergency motion to block Nexstar-Tegna because they claim it violates federal antitrust laws despite FCC approval waiving rules limiting TV station ownership concentration at 39%. The states argue this merger will harm consumers through price hikes, while the Justice Department expedited its review and waived a specific regulatory barrier allowing combined coverage of up to roughly double that limit.
Eight state attorneys general and DirecTV have filed lawsuits to block the $6.2 billion acquisition of Nexstar Media Group's rival Tegna, arguing it will create a monopoly that raises prices for consumers while stifling local journalism. The lawsuit contends this merger violates federal antitrust laws designed against monopolies despite President Donald Trump endorsing the deal earlier in February and FCC Chairman Brendan Carr advocating to loosen station ownership restrictions.