A federal judge in Sacramento has blocked Nexstar Media Group’s $6.2 billion merger with Tegna Inc., halting integration of the two television station giants while an antitrust lawsuit proceeds. U.S. District Court Chief Judge Troy L. Nunley issued a preliminary injunction late Friday, siding with DirecTV and eight state attorneys general who argue the deal would unlawfully consolidate local broadcast power and harm consumers through higher prices and weakened local news.
The ruling extends a temporary restraining order that had already paused the merger for three weeks, now blocking Nexstar from taking any steps to combine operations with Tegna until the case is resolved. Judge Nunley found the plaintiffs are likely to succeed in proving the merger violates antitrust laws by reducing competition in local television markets, particularly where the combined entity would own two or three of the top four network affiliates in a single market.
Despite the legal challenge, Nexstar moved forward with the acquisition on March 19, announcing the deal was complete even as litigation continued in multiple states. The company had secured approvals from the Federal Communications Commission and the U.S. Department of Justice, which had cleared the transaction under the Trump administration. FCC Chairman Brendan Carr had supported the waiver of longstanding ownership limits, arguing it would strengthen local stations against national networks.
But the judge rejected Nexstar’s claim that the merger had already been finalized and insulated from court review. He noted that the plaintiffs filed their suits before the transaction closed, giving Nexstar ample opportunity to delay integration until after judicial review. Instead, the company proceeded with integration efforts, which the court said would make divestiture more difficult if the merger is ultimately blocked.
The attorneys general, all Democrats, and DirecTV contend the merger would lead to higher retransmission consent fees charged to cable and satellite providers, which would ultimately be passed on to consumers. They likewise warn of newsroom cuts and reduced local journalism, citing Nexstar’s history of consolidating newsgathering across markets after acquisitions.
Nexstar maintains the deal was properly vetted and committed to expanding local programming, not shrinking it. The company says it will appeal the injunction to the Ninth Circuit Court of Appeals, arguing the court ignored the FCC and DOJ approvals and misapplied antitrust standards to a transaction that underwent extensive regulatory scrutiny.
The decision marks a rare judicial rebuke of a merger cleared by federal regulators under the Trump administration, highlighting growing scrutiny of media consolidation even as traditional broadcast faces pressure from streaming and declining advertising revenue. It also underscores the tension between regulatory approvals and judicial oversight in high-stakes corporate deals.
How the judge viewed Nexstar’s timing of the acquisition
Judge Nunley criticized Nexstar for moving forward with integration despite knowing the lawsuit was pending, saying the company could have delayed closing the deal or integrating operations until after the court ruled on the plaintiffs’ motions for a temporary restraining order. He wrote that Nexstar’s actions made it harder to unwind the merger later and showed disregard for the judicial process.
Why DirecTV is concerned about the merger’s impact on pricing
DirecTV argues that with Nexstar controlling more local affiliates in key markets, it would gain leverage to demand higher retransmission consent fees, which satellite and cable providers must pay to carry local channels. Those increased costs would likely be passed on to subscribers, potentially affecting access to popular programming like Sunday NFL games.
What the attorneys general say about local news
The lawsuit led by California’s Attorney General Rob Bonta and joined by counterparts in seven other states focuses on the threat to local journalism, alleging Nexstar has a pattern of cutting newsroom staff and shutting down local broadcasts after acquiring stations, which would worsen under a combined entity of this scale.
Can Nexstar still appeal the judge’s decision?
Yes, Nexstar has said it will appeal the preliminary injunction to the Ninth Circuit Court of Appeals, arguing the court ignored federal approvals and misapplied antitrust law to a transaction that underwent extensive regulatory review.
What happens next in the lawsuit?
The case will now proceed through litigation, with the plaintiffs having until April 30 to file amended complaints. A full trial on the merits of the antitrust claims will determine whether the merger can proceed or must be permanently blocked.
Did the FCC and Justice Department approve the merger?
Yes, both the Federal Communications Commission and the U.S. Department of Justice gave their approvals to the Nexstar-Tegna merger before the lawsuit was filed, though the judge’s ruling suggests those approvals do not shield the transaction from antitrust scrutiny in court.
