Judge halts Nexstar/Tegna merger after FCC let firms exceed TV ownership limit

A federal judge has intervened in the proposed $6.2 billion acquisition of Tegna by Nexstar Media Group, ordering an immediate halt to their asset integration. The temporary restraining order was issued by US District Judge Troy Nunley, who argued that merging the two companies could harm competition in the television market. Judge Nunley, appointed during the Obama administration, stated that the cessation of integration is necessary until the court can further evaluate the merger's implications. His ruling aligns with concerns raised by DirecTV, the plaintiff in this case, which argues that the merger could lead to reduced competition, potential layoffs, and challenges in divesting Tegna stations if required by the court. In his decision, Nunley emphasized that the merger would significantly lessen competition in markets affected by both companies and noted the risk of irreparable damage if the integration were allowed to proceed without judicial review. The temporary order is set to last for 14 days but could transition into a preliminary injunction, which would maintain the halt during the full trial regarding the merger's legality under anti-competition laws. DirecTV is not alone in opposing the merger, as various advocacy groups have also filed lawsuits against the Federal Communications Commission (FCC) aiming to overturn the merger's approval. Additionally, state attorneys general from multiple states, including California and New York, are challenging the deal. The judge has instructed Nexstar to provide justification for why the merger should not be further restrained, as concerns grow over its potential impact on retransmission consent fees and the risk of service blackouts for consumers due to disputes between providers.