Nexstar Fights Court Order Blocking Tegna Merger

Nexstar is urging the Ninth Circuit Court of Appeals to immediately narrow a nationwide "hold separate" order that has halted its $6.2 billion acquisition of Tegna. The company contends the merger's competitive concerns are limited to 31 specific local television markets where both Nexstar and Tegna own overlapping affiliates. However, the current broad injunction freezes integration across the entire combined entity.

Courts previously stated that Nexstar could gain excessive leverage in negotiations with pay TV providers like DIRECTV, potentially leading to higher consumer costs or reduced investment in local news. Nexstar argues this lawsuit is based on an outdated view of the media landscape and unfairly benefits DIRECTV and other platforms. The state attorneys general who filed a complaint against the merger are accused of a cynical attempt to advance their own interests.

The approved Nexstar-Tegna merger would create a significant local TV entity, reaching 80% of U.S. households. This deal, however, faces strong opposition from DirecTV and eight state attorneys general, who warn of increased consumer costs, diminished local competition, and potential blackouts of programming. Despite closing the merger, Nexstar was ordered to keep the companies largely separate during litigation.

Nexstar aims to convince the Ninth Circuit to lift the injunction before the antitrust trial, which is anticipated in July 2027. Amidst these legal battles, Tegna has seen several key executive departures, including its CFO, Chief Strategy Officer, and Chief Experience Officer.