Full Breakdown
States Challenge Nexstar-Tegna Merger on Antitrust Grounds
3/19/2026, 10:33:11 PM
Legal Action Against the Merger
A coalition of eight states, led by California, has filed a federal lawsuit to block Nexstar Media Group's proposed $6.2 billion acquisition of Tegna Inc. The lawsuit, submitted in U.S. District Court in Sacramento, argues that the merger would significantly increase market concentration in local television, leading to higher cable and satellite fees for consumers and a reduction in the quality of local news coverage. The states involved in the lawsuit include New York, Colorado, Illinois, Oregon, North Carolina, Connecticut, and Virginia.
California Attorney General Rob Bonta stated, “This merger would cause incredibly high levels of concentration in local TV markets and is expected to raise cable and satellite prices across the country, causing irreparable harm to local news and consumers.” The lawsuit claims that the merger violates Section 7 of the Clayton Act, which prohibits mergers that substantially lessen competition.
Concerns Over Market Concentration
The proposed merger would create the largest independent owner of ABC, CBS, Fox, and NBC affiliates in the United States, controlling approximately 80% of U.S. television households. The states argue that this level of concentration would diminish competition, leading to fewer independent voices in local journalism and potentially resulting in job losses within the industry. The lawsuit highlights concerns that Nexstar and Tegna would consolidate their newsrooms, thereby reducing the diversity of news coverage available to communities.
Bonta emphasized that “when broadcast media is owned by a handful of companies, we get fewer voices, less competition, and communities lose the critical check on power that local journalism delivers.” New York Attorney General Letitia James echoed these sentiments, asserting that the merger threatens the availability of affordable and independent local news.
Support for the Merger
Despite the legal challenges, Nexstar has received support from President Donald Trump and FCC Chairman Brendan Carr, who have both expressed their backing for the merger. Carr indicated that he would support the deal, although it would require a waiver from the FCC's national ownership rule, which currently limits any entity from owning stations that reach more than 39% of the country. Nexstar CEO Perry Sook has stated that the company is cooperating with the U.S. Department of Justice's review of the merger and remains optimistic about obtaining the necessary approvals.
Implications for Consumers and Local Journalism
The states' lawsuit raises significant concerns about the potential impact of the merger on consumers and local journalism. By consolidating control over numerous television stations, Nexstar could leverage its position to negotiate higher retransmission fees from cable and satellite providers, costs that would likely be passed on to consumers. The lawsuit argues that such a merger would not only harm competition but also degrade the quality of news reporting, which is vital for informed citizen participation in local governance.
What's Next
As the legal proceedings unfold, the U.S. Department of Justice will continue its independent review of the merger, which remains a necessary step for approval. The outcome of the lawsuit could set a precedent for future media mergers and their implications for competition and local journalism in the United States.
