Federal judge temporarily blocks Nexstar from integrating Tegna during antitrust case
The Facts
- A federal judge issued a preliminary injunction blocking Nexstar from combining operations with Tegna while the antitrust lawsuit proceeds.
- Chief U.S. District Judge Troy L. Nunley in Sacramento found that DirecTV and eight state attorneys general were likely to succeed, or prevail, in their challenge to the merger.
- The court order bars Nexstar from consolidating operations with Tegna but does not unwind the transaction that already closed.
- Nexstar and Tegna closed the deal on March 19 after receiving approval from the Federal Communications Commission and the Justice Department.
- The merger has been described as a $6.2 billion deal between Nexstar and Tegna.
- If completed, the combined company would own 265 television stations in 44 states and the District of Columbia.
Context
What exactly did the judge order?
The judge ordered Nexstar not to integrate Tegna into its operations and to keep Tegna operating as a separate business while the case continues NYT,Los Angeles Times. Reuters also reported that the order freezes consolidation but does not undo the completed transaction Yahoo! Finance.
Who is challenging the merger?
The challenge was brought by DirecTV and a group of eight state attorneys general, who argued the merger would violate antitrust law Owensboro Messenger…,Washington Post,Reuters.
What happens next?
Nexstar said it will appeal the ruling, while the antitrust case continues in federal court CNBC,Reuters,Deadline. For now, the injunction keeps the companies from combining operations pending further proceedings NYT,Bloomberg Business.
How left and right read it
A federal judge’s injunction keeps Nexstar and Tegna from combining operations for now after finding DirecTV and eight state attorneys general were likely to prevail in their antitrust challenge. With a $6.2 billion deal that would put 265 television stations across 44 states and Washington, D.C., under one company, the case centers on whether local media concentration has gone too far.
The ruling underscores that even after FCC and Justice Department approval, courts can still step in when a merger raises substantial antitrust concerns. Judge Troy L. Nunley did not unwind the March 19 closing, but he did require Nexstar and Tegna to remain separate while the challenge proceeds over a $6.2 billion deal that would span 265 stations in 44 states and Washington, D.C.
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Wire services (8)
Independent coverage (42)
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