Nexstar to Buy Tegna: FCC Approves $7.8B TV Station Deal

The Federal Communications Commission (FCC) approved the acquisition of Tegna Inc. By Nexstar Media Group on Thursday, March 19, 2026, a move that consolidates ownership of local television stations across the United States. The $3.54 billion deal, finalized despite objections from several state attorneys general, will grant Nexstar control over a significantly larger share of the nation’s television market, raising questions about the future of local news and media diversity.

Expanding Nexstar’s Reach and the Waiver of FCC Rules

This acquisition expands Nexstar’s coverage to approximately 80% of U.S. Television households. To facilitate the merger, the FCC waived a rule typically preventing broadcast station owners from reaching more than 39% of the U.S. Television audience. This decision underscores a shift in regulatory approach, as noted by FCC Chairman Brendan Carr, who stated the agency was “mindful of the media marketplace that exists today — not the one from decades past.” As reported by USA Today, the approval comes after President Trump voiced his support for the deal in February.

Legal Challenges to the Merger

The FCC’s decision wasn’t without immediate opposition. Just a day before the approval, a coalition of eight states – California, Colorado, Connecticut, Illinois, New York, North Carolina, Oregon, and Virginia – filed a lawsuit in the U.S. District Court in Sacramento, California, seeking to block the merger. DirecTV too filed a separate suit on March 18, raising similar concerns. These legal challenges center on the potential for higher prices for consumers and a reduction in the quality and quantity of local journalism. NPR reported that the attorneys general argue the deal will stifle local news coverage.

What Does This Mean for Local Journalism?

Nexstar CEO Perry Sook maintains that the transaction is “essential to sustaining strong local journalism in the communities we serve.” However, media analysts and critics express skepticism. Consolidation in the media industry often leads to cost-cutting measures, which can include staff reductions at local news stations. Fewer journalists on the ground can translate to less in-depth coverage of local issues, potentially impacting civic engagement, and accountability. The combined entity will own 265 television stations in 44 states and the District of Columbia, primarily affiliates of major networks like ABC, CBS, Fox, and NBC. Nexstar’s official announcement highlights their commitment to local programming, but the practical implications remain to be seen.

The Regulatory Landscape and the FCC’s Rationale

The FCC’s decision to waive its ownership rule is a significant departure from previous regulatory stances. Historically, the FCC has sought to limit media consolidation to promote diversity of voices and prevent monopolies. The rationale for this waiver appears to be based on the changing media landscape, with the rise of streaming services and digital news sources. The FCC argues that the traditional rules are no longer effective in a market where consumers have numerous options for accessing news and information. However, critics contend that these alternative sources do not necessarily replicate the role of local television news in providing coverage of local government, schools, and community events.

Department of Justice Approval and Transaction Closure

In addition to FCC approval, the acquisition also received the green light from the U.S. Department of Justice (DOJ). Nexstar announced the closure of the deal on March 19, 2026, following approvals from both agencies. The DOJ’s involvement suggests an assessment of potential antitrust concerns, but the specifics of their review have not been publicly detailed. The swift closure of the deal following the FCC’s decision indicates a coordinated effort to finalize the transaction quickly, despite the ongoing legal challenges.

What Comes Next: Legal Battles and Potential Outcomes

The lawsuits filed by the states and DirecTV represent the most immediate challenge to the merger. The legal proceedings will likely focus on whether the FCC adequately considered the potential harms to consumers and local journalism when it approved the deal. A court could uphold the FCC’s decision, block the merger entirely, or require Nexstar to divest some of its stations to address antitrust concerns. The outcome of these legal battles will have significant implications for the future of local television ownership and the media landscape in the United States. Ongoing monitoring of Nexstar’s operations by the FCC and other regulatory bodies will be crucial to ensure compliance with any conditions imposed as part of the approval process.