A federal judge has ordered Nexstar Broadcasting and Tegna to unwind their merger operations, freezing the $6.2 billion combination that closed just weeks earlier. The preliminary injunction issued Friday blocks the two companies from consolidating their stations and requires Tegna to remain a separate, independently managed unit within Nexstar.
District Judge Troy Nunley sided with DirecTV and eight states that sued to halt the deal, ruling that the merger would likely harm competition in dozens of local markets. The judge also agreed with DirecTV's argument that the combination would force pay-TV providers to raise prices on consumers, causing what he described as "irreparable harm."
The ruling represents a major setback for the broadcast industry's consolidation ambitions. Nexstar, already the nation's largest broadcaster, had sought to absorb Tegna's operations to control a combined portfolio spanning more than 259 stations with reach into more than 80 percent of U.S. households. The deal required the Federal Communications Commission to waive ownership rules capping local station reach at 39 percent of the national audience.
Nexstar closed the transaction on the day the FCC's Media Bureau green-lighted the license transfer without a full commission vote. The Justice Department had already ended its antitrust review, clearing the deal from that angle. But opponents, including consumer groups and Newsmax, challenged whether the FCC even possessed the authority to override the ownership cap. Congress originally set that threshold, and some legal scholars argue only Congress can dismantle it.
The preliminary injunction takes effect April 21, replacing a temporary restraining order that was set to expire. Until the legal dispute resolves, Nexstar must keep Tegna's operations distinct and cannot merge their station management or consolidate their businesses.
Nexstar signaled it plans to appeal the ruling. The case now moves forward with the injunction in place, meaning the deal that both companies considered final will remain frozen at least through the next phase of litigation. For the broadcast sector, which has aggressively pursued consolidation over the past decade, the order signals that courts will carefully scrutinize any megamerger claims that might reduce local news competition or concentrate too much power in a single operator.
Author James Rodriguez: "This ruling exposes just how fragile these mega-deals are when they rest on regulatory workarounds rather than airtight legal authority."
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