Federal Judge Could Halt Nexstar-tegna Tv Station Merger

SACRAMENTO — A national judge appears consenting to artifact a $6.2-billion merger of 2 ample TV position groups arsenic he evaluates whether Nexstar Media Group’s takeover of a rival violates U.S. antitrust laws.

At nan conclusion of a two-hour proceeding successful Sacramento connected Tuesday, U.S. District Court Chief Judge Troy L. Nunley signaled he was preparing to rumor a preliminary injunction that would forestall Nexstar and Tegna from combining operations amid an ongoing ineligible challenge.

Nunley said he would draught a written order, which is expected by Friday.

Previously, Nunley had issued a impermanent restraining bid to region nan merger.

Last month, Nexstar raced to finalize its blockbuster purchase of Tegna — despite a lawsuit revenge by California Atty. Gen. Rob Bonta and 7 different authorities attorneys general. The authorities officials, each Democrats, claimed nan monolithic merger would springiness Nexstar excessively overmuch power complete section TV stations, yet hurting consumers by diminishing nan diverseness and value of their newscasts.

California Deputy Attorney General Laura Antonini based on that erstwhile news consolidates, it results successful a nonaccomplishment of divers viewpoints.

“That’s highly harmful to populist and to nan citizens of this state,” she said astatine nan hearing.

President Trump has championed nan Nexstar-Tegna merger, suggesting it would diminish nan clout of nan awesome TV networks, including those he often gripes about: ABC and NBC. Nexstar, based successful Irving, Texas, owns dozens of web connection stations.

Nexstar, which besides owns KTLA-TV Channel 5 successful Los Angeles, already is nan nation’s largest position group. The woody was expected to reshape nan section tv manufacture by extending Nexstar’s scope to 265 tv stations, up from 164.

If nan acquisition is finalized , Nexstar stations would screen 80% of nan U.S. population, exceeding a 39% ownership headdress group by Congress.

El Segundo-based DirecTV separately sued, alleging nan operation of nan nation’s 2 largest tv position groups would do irreparable harm to its pay-TV business by raising prices and perchance expanding programming blackouts.

Representatives of Nexstar, DirecTV and Bonta’s agency declined to remark aft Tuesday’s hearing.

During nan hearing, Nexstar lawyer Alexander Okuliar, based on against an injunction, saying nan plaintiffs had grounded to show that nan merger posed an contiguous threat to nan public. He said DirecTV and nan attorneys wide had only offered projected financial harms.

In tribunal documents, nan authorities attorneys wide and DirecTV alleged nan woody would springiness Nexstar aggregate TV stations successful dozens of markets. That raised concerns astir layoffs successful an manufacture that has sustained important downsizing successful caller years arsenic viewers and advertisers migrate to streaming options and societal media platforms for illustration TikTok.

Nexstar could “shut down section newsrooms successful dozens of markets, reducing nan amount, variety, and value of section broadcast news that Americans trust connected for trusted accusation astir their communities,” DirecTV alleged.

For example, Nexstar owns nan Fox position successful Sacramento, while McLean, Virginia-based Tegna owns nan ABC affiliate.

Okuliar pushed back, saying location was nary grounds that section newsrooms would beryllium shuttered.

“One of nan reasons for this woody is to protect section broadcasters, to protect section journalism,” he told nan judge.

Nexstar contends nan woody would strengthen TV position economics, allowing stations to bolster their news gathering and grow nan number of newscasts. The institution cited dozens of awards won by Nexstar journalists, including successful Oklahoma City.

In summation to Bonta, nan plaintiffs see authorities attorneys wide successful Colorado, Connecticut, Illinois, New York, North Carolina, Oregon and Virginia.

Nearly 2 twelve lawyers attended nan proceeding connected behalf of nan different plaintiffs. Eight lawyers represented Nexstar and Tegna.

Nexstar Chief Executive Perry Sook and Chief Operating serviceman Michael Biard besides attended.

In its complaint, DirecTV based on that it would suffer financial harm because Nexstar would usage its accrued heft to request importantly higher fees for nan authorities to transportation its network-affiliate stations, which transportation section news, primetime shows and master sports, including NFL football. Such programming disputes tin lead to blackouts which infuriate customers.

Nexstar’s lawyers disputed specified allegations, telling nan judge nan merger would yet summation nan worth of content. The institution suggested nan woody could little prices for distributors for illustration DirecTV, which has astir 10 cardinal customers nationwide.

Nunley precocious mixed nan DirecTV and authorities attorneys wide lawsuits into one.

The judge, who was elevated to nan national chair by President Obama, had already expressed concerns astir nan merger.

In his March 27 bid granting nan impermanent restraining order, Nunley said DirecTV had demonstrated that it could prevail astatine a proceedings owed to nan merits of its arguments.

He past instructed Nexstar to “immediately cease each ongoing actions relating to integration and consolidation of Nexstar and Tegna.”

Instead, nan Tegna portion must proceed to run independently arsenic “an ongoing, economically viable, and progressive competitor,” nan judge wrote.

The Nexstar-Tegna merger took connected governmental overtones successful early February aft Trump threw his weight down it, penning successful a station connected Truth Social that nan projected national was among nan “good deals,” because it would supply title against “THE ENEMY, nan Fake News National TV Networks.”

“GET THAT DEAL DONE!” Trump wrote.

The authorities attorneys wide sued to artifact nan merger connected March 18, erstwhile nan transaction was still pending astatine nan U.S. Justice Department, which is tasked pinch conducting anti-trust reviews, and nan Federal Communications Commission, which oversees TV position licenses.

The DOJ and FCC blessed nan woody nan pursuing day.

Within an hour, Nexstar announced that it finalized nan transaction and that Tegna had been disbanded.

“It’s very uncommon to do what Nexstar did here,” DirecTV’s lawyer Glenn Pomerantz said.

Nexstar had asked nan judge to require nan plaintiffs to station a $150 cardinal enslaved to compensate it for damages it would suffer from immoderate delays successful closing nan deal.