Key Points
- State attorneys general and DIRECTV said their lawsuits against Nexstar’s TEGNA acquisition will proceed despite the deal closing.
- Plaintiffs argue the merger creates excessive market concentration and could lead to higher TV distribution fees.
- The FCC approved the deal with waivers, but legal challenges could still impact its long-term outcome.
The plaintiffs in a pair of federal lawsuits against Nexstar Media Group over the company’s acquisition of peer broadcaster TEGNA says their cases will continue to move forward in court, even after Nexstar announced it had closed on the deal.
On Thursday, California Attorney General Rob Bonta said in a statement that Nexstar’s $6.2 billion takeover of TEGNA’s local TV station was “not a done deal,” and said he expects the case filed by him, seven other state attorneys general and the Commonwealth of Virginia to proceed.
“California will not let the parties merge without a fight,” Bonta said.
California is taking the lead on the lawsuit, which was filed late Wednesday evening in federal court in Sacramento. The suit complains that Nexstar’s acquisition of TEGNA amounted to a monopoly because it gave one broadcaster too much control over major network-affiliated stations — outlets that carry programming from ABC, CBS, Fox and NBC.
Separately, DIRECTV also filed a federal lawsuit in the same jurisdiction, arguing that the deal would lead to higher prices for cable and satellite customers, as well as customers of streaming cable-like services.
DIRECTV is required to pay local broadcasters for the privilege of carrying their local TV stations, rates that are typically set by the broadcasters themselves. Over the past few years, the company has engaged in public disputes with Nexstar and TEGNA over their fees, at times leading to its subscribers losing access to local TV channels associated with both companies.
A spokesperson for DIRECTV told The Desk by text message that the company’s case against Nexstar is continuing. Separately, a source familiar with the matter said there were still “lots of twists to come” as the case progresses.
DIRECTV was one of several organizations that challenged the transaction while it was being scrutinized by the Federal Communications Commission (FCC), which must approve the transfer of broadcast TV licenses between companies.
Under current federal law, one company may not hold the TV licenses of stations that reach more than 39 percent of the American viewing audience — a cap that Nexstar exceeds through its acquisition of TEGNA.
Noting this, DIRECTV argued to the FCC that permitting Nexstar to acquire TEGNA’s 60-plus station portfolio would lead to consumer harms because it would give Nexstar a concentration of extreme power that allows it to raise fees on cable and satellite companies in the future, just as it has done in the past.
By acquiring TEGNA’s stations, future programming disputes will impact more customers who will be deprived of additional network-affiliated stations, DIRECTV argued.
But the FCC rejected this argument on Thursday, saying higher cable and satellite fees were not enough of a concern to block the deal.
“We do not believe that an increase in retransmission consent rates, by itself, is necessarily a public interest harm,” the FCC wrote.
Addressing the 39 percent ownership limitation, the FCC agreed to a request by Nexstar to waive that rule in each market where TEGNA owns an overlapping station, or where the acquisition of TEGNA’s station portfolio otherwise puts Nexstar over the ownership rule.
Nexstar has already taken a victory lap, praising FCC Chairman Brendan Carr and President Donald Trump for their support of the deal while promising that the transaction will strengthen competition in the media space and lead to further investments in local news.
“This transaction is essential to sustaining strong local journalism in the communities we serve,” Nexstar CEO Perry Sook said in a statement on Thursday. “By bringing these two outstanding companies together, Nexstar will be a stronger, more dynamic enterprise — better positioned to deliver exceptional journalism and local programming with enhanced assets, capabilities and talent.”
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- Nexstar CEO: TEGNA deal expected to close in late 2026, station sales possible
- States may sue to block Nexstar-TEGNA deal
- Sinclair urges FCC to approve Nexstar acquisition of TEGNA
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- CWA to make five proposals to Nexstar shareholders
- TEGNA pays $6,000 to settle FCC probe over public inspection files
- Optimum says FCC should review rule banning substitute broadcast signals during blackouts
- TEGNA ad revenue climbs 4 percent during Q4; distribution income dips
- Nexstar posts $83 million profit in 2025, despite lower overall revenue
- Nexstar lays off workers at KTLA, WPIX amid push for TEGNA merger
- Lawmakers: Nexstar-TEGNA deal will raise cable fees by $135 million
- Newsmax CEO Chris Ruddy threatens lawsuit over FCC TV ownership cap
