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Judge grants restraining order blocking Nexstar-TEGNA deal from taking effect

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mkeys@thedesk.net

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A federal judge in California has granted DIRECTV a temporary restraining order in a legal challenge brought against Nexstar Media Group’s $6.2 billion merger with TEGNA.

In a 24-page order handed down Friday evening, Judge Troy Nunley of the Eastern District of California said DIRECTV’s arguments that Nexstar’s acquisition of TEGNA was likely to succeed on its merits and that the deal could lead to irreparable harm if the temporary restraining order was not issued.

The judge found that DIRECTV’s position that the deal violates federal antitrust laws was persuasive, and that the loss of competition from the deal qualifies as a harm under federal legal precedents.

The harm to competing broadcasters and pay television providers outweighs any benefits to Nexstar while the case proceeds through the courts, Nunley wrote.

The order requires Nexstar and TEGNA to operate as separate companies while the case proceeds, unless the order is overturned by an appellate court. It wasn’t clear as of Friday evening if Nexstar plans to appeal the order.

The judge also ordered Nexstar to put in place measures that prevent confidential business-related information from being shared between the two companies, and to maintain separate management for both broadcasters. TEGNA’s management will have sole control over the operation of stations and related businesses, like Premion, while the temporary restraining order is in effect.

Nunley ordered Nexstar and TEGNA to file statements opposing a more-formal injunction, with those replies due by April 1. An in-person hearing has been scheduled in a Sacramento courtroom for April 7.

DIRECTV and eight state attorneys general filed separate but related legal challenges in Sacramento last week, one day before Nexstar secured approvals from Justice Department and Federal Communications Commission (FCC) regulators to close on their transaction.

DIRECTV filed its request for a temporary injunction shortly after Nexstar said it closed on the transaction. A separate restraining order request was made in the state case, and was granted on Friday, with the same conditions imposed on Nexstar and TEGNA.

Nexstar’s acquisition of TEGNA-owned stations creates the largest broadcast group in the country, with the combined company reaching more than 80 percent of American television viewers. Under existing federal law, one broadcaster may not own a collection of TV stations that reach more than 39 percent of the American viewing audience.

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About the Author:

Matthew Keys

Matthew Keys is the award-winning founder and editor of TheDesk.net, an authoritative voice on broadcast and streaming TV, media and tech. With over ten years of experience, he's a recognized expert in broadcast, streaming, and digital media, with work featured in publications such as StreamTV Insider and Digital Content Next, and past roles at Thomson Reuters and Disney-ABC Television Group.
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