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Nexstar Accused of Ignoring Merger Ban
22 Jul
Summary
- Nexstar accused of violating injunction by appointing executives to Tegna's board.
- Plaintiffs seek court intervention citing improper control and price-raising potential.
- A hearing is scheduled for September 3, with the merger trial set for July 2027.
State attorneys general and DirecTV have accused Nexstar Media Group of violating a court-ordered injunction. The injunction pauses Nexstar's $6.2 billion merger with Tegna and requires the companies to operate independently. The plaintiffs allege Nexstar appointed its CEO, president, CFO, and general counsel to Tegna's board, thereby improperly controlling the company.
This move allegedly violates the court's directive for separation during ongoing antitrust litigation. The plaintiffs are seeking court intervention, asking for the executives to be removed from Tegna's board. They also request monthly compliance reports from Nexstar and expedited discovery into the company's actions. A hearing on the motion is scheduled for September 3 at 2 p.m. PT, with the main trial for the merger set to begin on July 6, 2027.
Nexstar has stated that it has scrupulously complied with the court's hold-separate order and that Tegna operates independently. The company asserts its executives' service on Tegna's board is necessary for financial reporting obligations while the hold-separate requirements are in effect.
