U.S. Department of Justice Clears Nexstar’s Acquisition of Tegna
March 19 (Reuters) – The U.S. Department of Justice has unconditionally cleared Nexstar’s $3.5 billion deal to acquire rival Tegna, Bloomberg News reported on Thursday, citing people familiar with the matter.
The report comes a day after a group of eight states filed a suit in the U.S. District Court in Sacramento, California, to block the merger that would make the combined entity the largest U.S. broadcast station group.
Streaming and satellite TV provider DirecTV also filed a separate suit, seeking to prevent the deal, late on Wednesday.
The Justice Department has granted the companies what is known as early termination, meaning it has closed its review of the deal, the Bloomberg report said.
Acquiring Tegna would expand Nexstar’s presence covering 80% of TV households across key geographies and would require the Federal Communications Commission to lift the cap on station ownership.
Nexstar, Tegna and the DOJ did not immediately respond to Reuters’ requests for comment.
Last month, FCC Chair Brendan Carr said he supported the deal and would be moving forward to approve it after President Donald Trump publicly backed the merger.
The DOJ initiated an in-depth probe into the acquisition last year.
(Reporting by Juby Babu in Mexico City. Editing by Alan Barona)
U.S. Department of Justice Greenlights Nexstar’s Acquisition of Tegna
The U.S. Department of Justice has given its unconditional approval for Nexstar’s acquisition of Tegna in a $3.5 billion deal, as reported by Bloomberg News. This decision comes on the heels of a lawsuit filed by eight states in an attempt to block the merger, which would create the largest U.S. broadcast station group.
DirecTV, a streaming and satellite TV provider, also filed a separate lawsuit to prevent the deal from going through. Despite these legal challenges, the Justice Department has granted early termination, signifying the closure of its review of the acquisition.
If the acquisition of Tegna by Nexstar goes through, it would significantly expand Nexstar’s presence, reaching 80% of TV households across key geographies. This would necessitate the Federal Communications Commission to lift the cap on station ownership.
Both Nexstar, Tegna, and the DOJ have yet to provide any comments on the recent developments. FCC Chair Brendan Carr has expressed his support for the deal, with plans to move forward with approval following public backing from President Donald Trump.
The DOJ launched a thorough investigation into the acquisition last year, leading to this recent clearance by the department. With the legal hurdles gradually being overcome, the future of Nexstar’s acquisition of Tegna looks promising.
(Reporting by Juby Babu in Mexico City. Editing by Alan Barona)
