Federal judge could halt Nexstar-Tegna TV station merger

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

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

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

Previously, Nunley had issued a impermanent restraining bid to intermission the merger.

Last month, Nexstar raced to finalize its blockbuster acquisition of Tegna — contempt a suit filed by California Atty. Gen. Rob Bonta and 7 different authorities attorneys general. The authorities officials, each Democrats, claimed the monolithic merger would springiness Nexstar excessively overmuch power implicit section TV stations, yet hurting consumers by diminishing the diverseness and prime of their newscasts.

California Deputy Attorney General Laura Antonini argued that erstwhile quality consolidates, it results successful a nonaccomplishment of divers viewpoints.

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

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

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

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

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

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

During the hearing, Nexstar lawyer Alexander Okuliar, argued against an injunction, saying the plaintiffs had failed to show that the merger posed an contiguous menace to the public. He said DirecTV and the attorneys wide had lone offered projected fiscal harms.

In tribunal documents, the authorities attorneys wide and DirecTV alleged the 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 similar TikTok.

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

For example, Nexstar owns the Fox presumption successful Sacramento, portion McLean, Virginia-based Tegna owns the ABC affiliate.

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

“One of the reasons for this woody is to support section broadcasters, to support section journalism,” helium told the judge.

Nexstar contends the woody would fortify TV presumption economics, allowing stations to bolster their quality gathering and grow the fig of newscasts. The institution cited dozens of awards won by Nexstar journalists, including successful Oklahoma City.

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

Nearly 2 twelve lawyers attended the proceeding connected behalf of the 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 argued that it would endure fiscal harm due to the fact that Nexstar would usage its accrued heft to request importantly higher fees for the rights to transportation its network-affiliate stations, which transportation section news, primetime shows and nonrecreational sports, including NFL football. Such programming disputes tin pb to blackouts which infuriate customers.

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

Nunley precocious combined the DirecTV and authorities attorneys wide lawsuits into one.

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

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

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

Instead, the Tegna portion indispensable proceed to run independently arsenic “an ongoing, economically viable, and progressive competitor,” the justice wrote.

The Nexstar-Tegna merger took connected governmental overtones successful aboriginal February aft Trump threw his value down it, penning successful a station connected Truth Social that the projected national was among the “good deals,” due to the fact that it would supply contention against “THE ENEMY, the Fake News National TV Networks.”

“GET THAT DEAL DONE!” Trump wrote.

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

The DOJ and FCC blessed the woody the pursuing day.

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

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

Nexstar had asked the justice to necessitate the plaintiffs to station a $150 cardinal enslaved to compensate it for damages it would endure from immoderate delays successful closing the deal.