A federal judge in Sacramento has placed a preliminary injunction on the acquisition of Tegna TV stations by Nexstar, as part of DirecTV’s lawsuit aimed at halting the merger of the TV station groups.
U.S. District Court Judge Troy Nunley from California’s Eastern District released the 52-page ruling late on Friday, backing DirecTV’s claim that Nexstar’s integration with Tegna’s 64 stations could cause “irreparable harm” to DirecTV. Nexstar plans to appeal the decision.
On March 19, Nexstar declared its acquisition of Tegna complete, despite ongoing legal challenges in California and other states. The merger puts Nexstar beyond the FCC’s current station ownership limits, although the FCC is reviewing these rules. Nexstar proceeded with the acquisition, betting that regulatory rules would change, and indeed, the FCC and Justice Department approved the merger. However, DirecTV and attorneys general from eight states are resisting the move.
On March 27, Judge Nunley issued a temporary restraining order against Nexstar’s integration efforts. The preliminary injunction further restricts Nexstar from continuing its integration with Tegna. The ruling assesses the merger’s effect on local news, noting Nexstar’s history of consolidating newsgathering operations across markets, a key concern for the lawsuit spearheaded by Bonta and officials in New York, Colorado, Illinois, Oregon, North Carolina, Connecticut, and Virginia.
DirecTV is particularly concerned about Nexstar’s potential to increase retransmission consent fees for cable operators and satellite providers like itself.
“The Court agrees with Plaintiffs that the Defendants’ integration efforts are precisely those that would complicate divesting Tegna stations, eliminate competition, and lead to newsroom layoffs and closures,” Nunley explained. “The Court also observes that Plaintiffs filed their suits before the Defendants finalized the transaction. Thus, the Defendants could have delayed completion or integration efforts until after this Court addressed the Plaintiffs’ motions for a TRO. Given that Plaintiffs demonstrate a likelihood of success and that an injunction serves the public interest, the Court concurs that Nexstar’s private gains from acquiring Tegna are outweighed by the harm to Plaintiffs.”
Nexstar holds the title of the largest TV station owner in the nation, with nearly 200 stations. Tegna owns Big Four network affiliate stations in major and medium-sized markets including Washington, D.C., Houston, Dallas, Seattle, Denver, and Phoenix.
“This transaction concluded over four weeks ago, following all necessary regulatory approvals from the Federal Communications Commission and the U.S. Department of Justice. Nexstar Media Group now owns Tegna and is complying with the Court order in effect,” Nexstar stated. “For nearly thirty years, Nexstar has offered free over-the-air access to its stations—local news, weather, and community-focused programming alongside major network shows. This procompetitive transaction will enhance local stations and support further investment in local journalism and fact-based news. We will appeal today’s decision and expect to present our case before the Ninth Circuit Court of Appeals.”
DirecTV promptly praised Judge Nunley’s decision.
“We commend the court’s decision, which reaffirms the coalition of states’ and our collective belief that unchecked station consolidation will force consumers to pay more for less by diminishing the quality and diversity of local news coverage, driving up content costs, and heightening the risk of station blackouts,” DirecTV stated. “DirecTV remains dedicated to a competitive, diverse, and affordable media landscape for all Americans.”
Rob Bonta, California’s Attorney General, described Nunley’s ruling as “a critical win” for the plaintiffs.
“My office and attorneys general across the nation have secured a preliminary injunction in our lawsuit opposing the illegal and U.S. DOJ-approved merger of Nexstar/Tegna—an order halting the broadcasting giants from merging while our case proceeds. This is a crucial victory in our case,” Bonta stated. “This merger is illegal, plain and simple. The federal government may have given up, but we will continue to fight for consumers, workers, affordability, and our local news.”
