The ruling represents a significant challenge to media consolidation. Judge Nunley concluded the merger would enable Nexstar to raise broadcast fees charged to video distributors, ultimately increasing consumer cable and satellite bills, while reducing local news options across the nation.
Federal judge Troy L. Nunley blocked a $6.2 billion merger between television giants Nexstar Media Group and Tegna on Friday, finding that state attorneys general and DirecTV are likely to prevail in their antitrust lawsuit challenging the deal. The merged company would have owned 265 television stations across 44 states and the District of Columbia.
Judge Nunley found the merger would enable Nexstar to raise the retransmission fees it charges video programming distributors like DirecTV, ultimately raising consumer cable bills. Nexstar has a documented track record of consolidating local television news stations when it owns multiple stations in a market, the judge said, limiting viewer options for local news. The preliminary injunction will keep the merger blocked while the lawsuit proceeds.
Regulatory approval and political pressure
The merger was announced last year and approved by the Federal Communications Commission in March. The FCC, operating under the Trump administration, required the company to divest six stations as a condition of approval. The Department of Justice closed its antitrust investigation in March through early termination, ending the review process sooner than statute typically requires.
President Trump publicly urged federal regulators in February to approve the deal, according to the judge’s written decision. The president said the goal was to “knock out the Fake News.”
Nexstar’s attorneys told the court the deal had already been reviewed and cleared by the FCC and Department of Justice. They argued the FCC order commits the company to expand local journalism and programming, not shrink it.
States and DirecTV claim victory
New York Attorney General Letitia James called the decision a “critical victory” Friday evening.
“Consolidating hundreds of local TV stations under one corporate owner would mean higher prices and lower quality programming for consumers,” she said. “We will keep fighting our case to ensure fair competition among local TV stations that serve communities across the country.”
Eight state attorneys general, all Democrats, joined DirecTV in suing to block the deal on grounds it would reduce competition, raise prices for consumers, and harm local journalism.