Home / Business and Economy / DOJ Approves Mega TV Deal Amidst Lawsuits
DOJ Approves Mega TV Deal Amidst Lawsuits
20 Mar
Summary
- US Justice Department cleared Nexstar's $3.5 billion acquisition of Tegna.
- The merger faces opposition from state attorneys general and DirecTV.
- The combined company would reach 80% of US households, challenging federal limits.
The U.S. Justice Department has unconditionally cleared Nexstar Media Group's proposed $3.5 billion acquisition of rival Tegna Inc. This decision, granting early termination of its review, paves the way for the creation of the nation's largest operator of local television stations. The DOJ's clearance comes despite ongoing legal challenges from a coalition of state attorneys general and DirecTV, who are actively seeking to block the merger.
Concerns raised by the opposing parties include the potential for the combined entity to exert too much control over television markets across the U.S. They also anticipate negative consequences such as impacts on local news delivery, increased pay-TV prices, and subsequent job cuts. Federal law currently restricts local station owners from serving more than 39% of the country, a limit the companies aim to overcome through a rule change or waiver, as their proposed consolidation would reach 80% of U.S. households with 265 full-power stations.
