Nexstar-Tegna Merger Approved Despite State Lawsuit & FCC Concerns | KTLA

Nexstar Media Group has officially closed its acquisition of Tegna Inc., adding 265 television stations to its already substantial portfolio, despite a last-minute lawsuit filed by eight state attorneys general attempting to block the deal. The move, finalized on Tuesday, March 19, 2026, marks a significant consolidation in the local television landscape and raises questions about the future of local news and competition.

A Contentious Path to Completion

The acquisition, first announced in August 2025, faced immediate scrutiny and opposition. Eight state attorneys general – representing California, Colorado, Connecticut, Illinois, Novel York, North Carolina, Oregon, and Virginia – filed a lawsuit just one day before the deal’s completion, arguing that the merger would grant Nexstar excessive control over local television broadcasting. California Attorney General Rob Bonta specifically warned of “irreparable harm to local news and consumers” due to reduced competition and potential price increases for viewers. The Los Angeles Times reported on the lawsuit, detailing the states’ concerns.

Despite the legal challenge, the Federal Communications Commission (FCC) and the Department of Justice (DOJ) approved the transaction. Nexstar secured the approvals through waivers, allowing it to operate in violation of the existing national ownership cap of 39% under federal law. This decision drew criticism from within the FCC itself, with Commissioner Anna Gomez expressing concerns about the lack of full commission deliberation and the potential for “reckless media consolidation.” Gomez stated that a transaction of this magnitude “demands open deliberation before the full Commission, not a quiet sign-off meant to avoid public scrutiny.”

Perry Sook and Nexstar’s Expansion

Nexstar, founded in 1996 by Perry Sook, has grown from a single local television station (WYOU in Scranton, Pennsylvania) to the largest TV station owner in the U.S. Sook, who remains Chairman and CEO, has been a driving force behind the company’s aggressive acquisition strategy. His contract was recently extended through March 2029, signaling continued leadership. According to his Wikipedia profile, Sook likewise chairs the joint board of directors of the National Association of Broadcasters.

The Tegna acquisition significantly expands Nexstar’s reach, bringing its total station count to 265, reaching approximately 80% of U.S. Television households. Beyond traditional broadcasting, Nexstar also owns media properties like The Hill, the CW network, and NewsNation (formerly WGN America). This diversification reflects a broader trend in the media industry towards consolidation and the pursuit of multi-platform content distribution.

The Retransmission Consent Battles

Nexstar’s history isn’t without its conflicts. In 2003, Sook led Nexstar public after acquiring Quorum Broadcasting. Years later, the company engaged in a highly publicized dispute with Cox Cable over “retransmission consent” fees – the fees cable companies pay to broadcast local television signals. The conflict escalated to the point where Cox published Sook’s home phone number in advertisements, encouraging customers to call him. Sook retaliated by publishing the home phone number of a Cox Cable general manager. Cox agreed to pay the fees, setting a precedent for similar negotiations across the industry. This illustrates the significant leverage that large station groups like Nexstar wield in negotiations with cable and satellite providers.

What the Merger Means for Local Journalism

The core argument in favor of the merger, as articulated by Sook, is that it will “sustain strong local journalism in the communities we serve.” Nexstar claims that the combined entity will be “better positioned to deliver exceptional journalism and local programming with enhanced assets, capabilities, and talent.” However, critics fear the opposite – that increased market concentration will lead to reduced investment in local news coverage and a decline in journalistic quality. The potential for cost-cutting measures and the elimination of redundant positions within the combined company are significant concerns.

The merger also raises questions about the future of advertising revenue for local stations. With increased leverage in negotiations with pay-TV providers, Nexstar could potentially drive up fees for cable and satellite subscribers, potentially leading some viewers to cut the cord and rely on alternative sources of news and information. This shift could further exacerbate the financial challenges facing local news organizations.

Looking Ahead: Regulatory Scrutiny and Integration Challenges

Whereas the deal has closed, the legal battle initiated by the state attorneys general is ongoing. The outcome of that litigation could have significant implications for the future of media consolidation. The FCC’s decision to grant waivers allowing Nexstar to exceed the national ownership cap is likely to face continued scrutiny from consumer advocacy groups and lawmakers.

The immediate focus for Nexstar will be integrating Tegna’s operations and realizing the promised synergies of the merger. This will involve streamlining operations, consolidating staff, and developing a unified strategy for content creation and distribution. The success of this integration will be crucial in determining whether the merger ultimately delivers on its promise of strengthening local journalism or contributes to its further decline. Nexstar’s founder, Perry Sook, emphasized the importance of this integration, stating that the combined company will be “a stronger, more dynamic enterprise.” Nexstar’s official press release details Sook’s comments on the acquisition.