A federal judge has blocked the $3.5 billion merger of media companies Nexstar Media Group and TEGNA, two of the largest owners of local television stations in the country, while an antitrust lawsuit plays out.
In Indianapolis, this means an extended pause on the plan for Nexstar, the owner of CBS 4 and FOX 59, to acquire TEGNA, which owns WTHR, until there is a ruling in the case.
DIRECTV sued on antitrust grounds in March, alleging that the merger will create a “broadcast behemoth” that will drive up cable costs, close local newsrooms and reduce competition and quality in local TV markets. A federal judge issued a temporary restraining order that month, preventing the companies from taking any further action to consolidate. The April 17 injunction extends that pause.
If the two companies merge, Nexstar would control 228 television stations that reach about 80% of American households and 55% of the national audience, according to court documents. In many cities, this give Nexstar control of multiple “Big Four” stations, which are CBS, FOX, ABC and NBC. In Indianapolis, since WTHR is an NBC affiliate, Nexstar would have what is known as a “triopoly.”
Initially Nexstar needed a waiver from the Federal Communications Commission for the merger. In February, President Donald Trump weighed in in support of the deal, followed by FCC chair Brendan Carr. The FCC greenlit the acquisition in March. DIRECTV’s antitrust lawsuit landed the evening before the deal closed.
The defendants argued that the merger would allow Nexstar to push cable costs down because they are competing with streaming services. They called the claim that the plan will harm local news quality “speculative” and “unsupported” and said Nexstar has increased its hours of local news programming since 2019.
But the court decided the plaintiffs demonstrated a “reasonable probability of anticompetitive effect.”
As part of the April 17 order, Nexstar must allow TEGNA to operate as an independent competitor with separate management and prevent the sharing of sensitive information or attempts to influence the management of TEGNA. The order also states the two companies “shall use all reasonable efforts to maintain” staffing levels that existed prior to the deal. The injunction will be effective April 21, and the court extended the temporary restraining order until then.
Contact state government and politics reporter Kayla Dwyer at kdwyer@indystar.com or follow her on X @kayla_dwyer17.
This article originally appeared on Indianapolis Star: Federal judge blocks Nexstar-TEGNA merger amid antitrust lawsuit
Reporting by Kayla Dwyer, Indianapolis Star / Indianapolis Star
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