FCC Approves Nexstar-Tegna Merger Despite Antitrust Lawsuits | NPR

The Federal Communications Commission (FCC) approved the merger of Nexstar Media Group and Tegna on Thursday, creating the largest local television station owner in the United States. The decision, however, immediately drew legal challenges, with lawsuits filed in California by attorneys general from eight states and by DirecTV, raising concerns about potential price increases for consumers and a decline in local journalism. The approval comes despite ongoing debate about media consolidation and its impact on the public interest.

Consolidation in Local Broadcasting

The merger will combine Nexstar, already a major player in the local television market, with Tegna, resulting in a company owning 265 stations across 44 states and the District of Columbia. Most of these stations are affiliates of the major broadcast networks – ABC, CBS, Fox, and NBC. As a condition of approval, Nexstar agreed to divest six stations to address antitrust concerns, but critics argue this isn’t enough to mitigate the potential harms. FCC Chairman Brendan Carr emphasized the importance of supporting local broadcast stations, suggesting the merger would allow for continued investment in local news operations. Perry Sook, Nexstar’s chairman and CEO, echoed this sentiment, stating the combined company would be “better positioned to deliver exceptional journalism and local programming.”

The scale of the combined entity is significant. According to the lawsuits, We find 31 markets across the country where Nexstar and Tegna already own at least one station, raising concerns about reduced competition and increased leverage in negotiations with cable and satellite providers.

Legal Challenges and Consumer Concerns

The lawsuits filed in Sacramento, California, allege that the merger violates federal antitrust laws and will lead to higher prices for consumers. New York Attorney General Letitia James, a leading voice in the opposition, stated that the merger would “spike cable prices” for New Yorkers and across the country. DirecTV similarly argued that Nexstar would be able to demand higher fees from distributors to carry its stations, ultimately passing those costs onto subscribers. You can find more information about Attorney General James’ work on the New York State Attorney General’s website.

The states involved in the lawsuit – California, Colorado, Connecticut, Illinois, New York, North Carolina, Oregon, and Virginia – are all led by Democratic attorneys general. They argue that the merger will stifle local journalism, a concern echoed by media watchdogs who have documented the decline of local newsrooms in recent years. The lawsuits point to Nexstar’s history of consolidating newsrooms in markets where it already has a presence, potentially leading to job losses and reduced coverage of local issues.

The FCC’s Decision and Divergent Views

The FCC’s approval of the merger was granted after waiving rules that limit the number of local stations one company can own. The Justice Department too reportedly gave its approval, though independent confirmation was not immediately available. The decision was met with criticism from within the FCC itself. Democratic member Anna Gomez condemned the approval process, stating it was done “behind closed doors without an actual vote” and that it failed to adequately consider the potential harm to local journalism. She highlighted the existing strain on local news organizations, with newsrooms being consolidated and reporters laid off, and argued that the merger would exacerbate these trends.

The approval also follows an endorsement from President Donald Trump in February, who stated on social media that “we necessitate more competition against THE ENEMY, the Fake News National TV Networks.” This statement underscores the politically charged environment surrounding media consolidation and the differing views on the role of local news in a polarized society.

Nexstar’s Past Actions and Potential Impacts

Nexstar has demonstrated a willingness to exert its influence over programming decisions. Last fall, the company ordered its ABC stations to temporarily suspend late-night host Jimmy Kimmel following comments he made about Republican activist Charlie Kirk. This incident, while ultimately resolved with Kimmel’s reinstatement and Nexstar backing down after public outcry, highlighted the potential for a large station owner to influence content and potentially suppress dissenting voices. More information on this incident can be found in Britannica’s profile of Letitia James, which details her broader efforts to hold powerful entities accountable.

The lawsuits also express concern about the impact on the quality and diversity of local news coverage. With fewer independent voices controlling local broadcasting, there is a risk that important local issues will be overlooked or underreported, and that the public will have less access to diverse perspectives.

What Comes Next: Legal Battles and Regulatory Scrutiny

The legal challenges to the merger are likely to be protracted, and complex. The attorneys general involved have indicated they are open to other states joining their lawsuit, potentially broadening the scope of the legal battle. The outcome of these lawsuits will have significant implications for the future of local broadcasting and the media landscape as a whole. The courts will need to weigh the potential benefits of the merger – such as increased efficiency and investment in local news – against the potential harms to consumers and the public interest. The Department of Justice’s role will also be closely watched, as its initial approval is now subject to scrutiny in light of the legal challenges. You can learn more about Letitia James’ role as New York Attorney General on her Wikipedia page.

Beyond the legal challenges, the FCC’s decision is likely to spark further debate about the need for updated regulations to address the changing media landscape. The current rules governing media ownership were established decades ago and may not be adequate to address the challenges posed by consolidation and the rise of digital media. The FCC may need to revisit these rules to ensure that the public continues to have access to diverse, independent, and high-quality local news and information.